I have a client who was suckered into stacking from a broker when he started his business 3 years ago.

He has been nickle and dimed to death by the bottom feeders (Yellowstone, etc.). On top of that, his broker hooked him up with a factoring company that is holding over 50% of his invoices. He generates approx. $800k a month in invoices but is only being given $250-350 and the rest is being put into a lockbox. Because of all this he is always in need for capital and has to keep going back to these lenders for additional capital. It has also led him to NUMEROUS overdrafts. In Sept. he had over 50. He is doing better this month (I have MTD) and is working his balances down. He does not want to go back to them and is looking for a lender who will give him $250k.

I have had this file for a while and having a hard time placing it because of his history of stacking. He is willing to sign a declaration with any consequences the lender deems fit to prevent him from stacking behind whomever gets him out of this mess.

Here are the details:

Global Merchant: $3k
New Era: $18k
WG: $12k
Yellowstone: $9k

Average monthly gross: $320k
CC Volume: $200k monthly