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11-17-2015, 02:26 PM #1
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No PG for over $200K
What lenders are offering $200K to $1MM deal sizes without Personal Guarantees?
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11-17-2015, 02:31 PM #2
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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.
Last edited by Kevin Henry-Seacoast; 11-17-2015 at 02:45 PM.
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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11-17-2015, 02:53 PM #3
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11-17-2015, 02:59 PM #4
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Validity Guarantee= You will not knowingly commit fraud or will be held personally liable. PG=Personally guarantying the facility.
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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11-17-2015, 03:02 PM #5
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right so a performance guarantee and a validity guarantee are the same thing.
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11-17-2015, 03:04 PM #6
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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
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11-17-2015, 03:07 PM #7
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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).Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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11-17-2015, 03:16 PM #8
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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.
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11-17-2015, 03:22 PM #9
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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.
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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11-17-2015, 03:29 PM #10
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Word! KevinHenry droppin knowledge on the forum!
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11-17-2015, 03:33 PM #11
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My Mother raised ugly children, not stupid ones....
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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11-17-2015, 03:35 PM #12
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11-18-2015, 03:20 PM #13
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11-18-2015, 03:41 PM #14
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No PG for over $200K
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.
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11-18-2015, 03:52 PM #15
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11-18-2015, 04:02 PM #16
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No PG for over $200K
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.
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11-18-2015, 05:03 PM #17
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11-19-2015, 08:36 AM #18
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11-18-2015, 04:16 PM #19
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You are 100% right, in truth a REAL "personal guarantee" isn't something you'll find on most contracts. A Validity/performance guarantee is.
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12-01-2015, 11:40 AM #20
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12-01-2015, 11:46 AM #21
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