[loan]

What lenders are offering $200K to $1MM deal sizes without Personal Guarantees?

[Kevin Henry-Seacoast]

Depending on the Company, customers, industry... We might not require a PG, but would want a validity guarantee. We can do deals as small as $250,000 in facility size and go up to $10Mil.

[AndyYSCISOdept]

Depending on the Company, customers, industry... We might not require a PG, but would want a validity guarantee. We can do deals as small as $250,000 in facility size and go up to $10Mil.

Whats the difference in the wording of your "Validity guarantee" versus a standard performance guarantee that is set up against merchants "fraudulently going out of business"?

[Kevin Henry-Seacoast]

Validity Guarantee= You will not knowingly commit fraud or will be held personally liable. PG=Personally guarantying the facility.

[AndyYSCISOdept]

right so a performance guarantee and a validity guarantee are the same thing.

[RichardGerard]

Clients that have multiple businesses and/or revenue streams much prefer the validity guarantee as opposed to the PG. More often desired in the ABL or $1M + Facility space.

www.businesscapitalconsultants.com

[Kevin Henry-Seacoast]

Andy-Yes, but with a performance guarantee one could argue a guarantee if the business failed with no evidence of fraud.
Richard-It also comes in handy with companies with broad based ownership (public) or backed by financial sponsor (private equity).

[AndyYSCISOdept]

I think that's a bit of semantics....and in my experience, if a business has legitimately gone out of business through no fault of their own you wont find anyone willing to waste time money resources etc on getting back whatever is left over on the balance. Now I know this isn't always the case but it has been my experience over the years.

[Kevin Henry-Seacoast]

Andy-The art of deploying capital...... If you are good at business development, underwriting, and relationship/portfolio management, you worry less about a company defaulting.

[AndyYSCISOdept]

Word! KevinHenry droppin knowledge on the forum!

[Kevin Henry-Seacoast]

My Mother raised ugly children, not stupid ones....

[AndyYSCISOdept]

My Mother raised ugly children, not stupid ones....

I knew I got it backwards, Im so pretty just not so bright....but I know who to make alliances with!

[FundMaster82]

If it is health or medical based give James Graydon a call at ProMED Healthcare Financing, they have a product that does not require a PG and can fund up to $1million. 631-468-6325.

What lenders are offering $200K to $1MM deal sizes without Personal Guarantees?

[VFG]

When the topic of guarantees comes up in the conversation with your client, you really want to understand why is the prospect so focused on the guarantees. I have had cases where part of the ownership is concentrated in several partners, private, equity, etc where a validity, limited or performance guarantee could be used, but there are other cases where the business owner has no clue of what a guarantee entails, what it covers and what assets are being pledged that make this prospect uncomfortable. This is where we as salespeople need to explain the prospect the guarantees, while helping them land in the reality that there are no ways around guarantees on certain cases.

[AndyYSCISOdept]

When the topic of guarantees comes up in the conversation with your client, you really want to understand why is the prospect so focused on the guarantees. I have had cases where part of the ownership is concentrated in several partners, private, equity, etc where a validity, limited or performance guarantee could be used, but there are other cases where the business owner has no clue of what a guarantee entails, what it covers and what assets are being pledged that make this prospect uncomfortable. This is where we as salespeople need to explain the prospect the guarantees, while helping them land in the reality that there are no ways around guarantees on certain cases.

(in the voice of Dave Niehaus, famous Mariners Broadcaster)

Get out the rye bread and mustard grandma because that was Grand Salami! He hit that WAY WAY outta here and it aint comin back!

Check Youtube for actual voice!

[VFG]

I have seen so many salespeople lose deals over PGs and 9 out of 10 times its because the salesrep did not sell the PG upfront and the prospect all of a sudden does not answer the phone, return emails, etc.

Not saying this is the particular case of the person asking the question, but I though it would be good to bring it up since sometimes we forget to mention it during our pitches.

[AndyYSCISOdept]

You are 100% right, in truth a REAL "personal guarantee" isn't something you'll find on most contracts. A Validity/performance guarantee is.

[Chambo]

I have seen so many salespeople lose deals over PGs and 9 out of 10 times its because the salesrep did not sell the PG upfront and the prospect all of a sudden does not answer the phone, return emails, etc.

Not saying this is the particular case of the person asking the question, but I though it would be good to bring it up since sometimes we forget to mention it during our pitches.

Just like when they sell MCA's as unsecured, but then merchant wants to know why there is a UCC?

These rookies don't realize that a UCC-1 filing is a type of security, and they have now become your typical sleazy, lying salesman.....

[AndyYSCISOdept]

Just like when they sell MCA's as unsecured, but then merchant wants to know why there is a UCC?

These rookies don't realize that a UCC-1 filing is a type of security, and they have now become your typical sleazy, lying salesman.....

When did being ignorant make you sleazy and a liar? Uneducated and naïve maybe, but liar? I don't think so.

[FundMaster82]

If it is a health/medical deal ProMED Healthcare Financing could accomplish this; give James Graydon a call at 631-468-6325.

What lenders are offering $200K to $1MM deal sizes without Personal Guarantees?

[Funder Mark]

If it is a health/medical deal ProMED Healthcare Financing could accomplish this; give James Graydon a call at 631-468-6325.

First of all, you are repeating yourself, and secondly we all know.