[sdellitalia]

I have a merchant looking to consolidate 5 advances. He grosses 250k per month.

Call Sal 516-492-4533

[Triton]

Powerup

[Jstarr]

Amanda Kingsley , she can do it. admin@sendto.capital

[brokerCompany]

balances of all the advances of the industry?

[ridextreme]

balances of all the advances of the industry?

yes it would be helpful to know what the balances are. Total gross of 250K is irrelevant without knowing the balance.

It's great there are people who are saying they can do it without this information but please send me an ISO agreement I'm interested in signing up if balances are not a factor.

[Zach]

Balances are not important to us at WBL. We understand our loan size is almost certain to be larger than any amount of balances he may have out, and we don't require the client to net anything. In fact, we can do partial consolidations in many cases, paying off several advances and leaving a few in place.

With their 250K monthly cash flow, I can likely lend between 500K to 750K, based upon the collateral value and debt. 6-36 months, with interest-only and traditional programs available.

Feel free to send it over for a quick review. I can pull a Lexis Nexis and tell you if he owns property within 5 minutes.

[sdellitalia]

320k

[sdellitalia]

Balances are 320k

[dpFund]

Sal,

I am a direct lender and do MCA consolidations all day long, usually getting client payments down to about one third of what they are paying now.

Some highlights:

1.) Funding amount from $100k - $2M
2.) Monthly payments (I am not a MCA lender so no daily payments)
3.) 12-18 month term
4.) Client can pre-pay at any time after six months, with no fees, penalties or interest (just pay remaining principle and they are out. Quite often our clients will take an eighteen month term to minimize payments. Then at six months they have saved so much money they swoop in and pay us off. Ends up being about a 1.15 cost over six months to the client when they do it this way.
5.) No limit on the number of advances the client can consolidate (I have consolidated several with eight advances)
6.) No state limitations
7.) No industry limitations (outside of individual restaurants, but there are plenty of guys that love those)
8.) No collateral required

Hope this helps. Let me know if you would like to talk.

Thanks,

Dan Page
Direct: (303) 938-8280
dan@fundingstrategypartners.com

[Michael I]

Amanda Kingsley , she can do it. admin@sendto.capital

as a broker ? or did she start funding also ?

[SCCNY]

No chance consolidating 5 balances that high with those revenues with a cash advance. You will have to get creative on this one.

[AndyYSCISOdept]

No chance consolidating 5 balances that high with those revenues with a cash advance. You will have to get creative on this one.

Agreed! The biggest question is why the merchant allowed themselves to pull out 5 balances that high and STILL requires money!?! The obvious answer is that they are over leveraged but still, I mean What is going on!?!

[Chambo]

Balances are 320k

Balances are $320K combined, the merchant does $250K a month in deposits? You are looking for what exactly here, or am I missing something?

[Chambo]

Agreed! The biggest question is why the merchant allowed themselves to pull out 5 balances that high and STILL requires money!?! The obvious answer is that they are over leveraged but still, I mean What is going on!?!

the merchant is looking for more money, because they are probably paying over 50% of their gross intake out to cash advance companies.

[dpFund]

the merchant is looking for more money, because they are probably paying over 50% of their gross intake out to cash advance companies.

I think you probably nailed it Chambo. While deals like this can be extremely challenging for many consolidators, if the client has strong net income (outside of their cash advance payments), some of these are doable. A couple months ago, I consolidated a client that had $1.2M of MCA debt. He was paying $400k monthly, which was 100% of his net income. We were able to get him down to $120k in monthly payments, immediately dropping $280k of monthly net income onto his bottom line. Knock on wood...but so far he has been a great client.

I know that scenario above sounds ridiculous...but there are scenarios where these high balance consolidations can work. Just depends upon the individual client at hand, and the relative health of their business.

[AndyYSCISOdept]

dp Fund, the scenario you described is much more doable than the one originally described in this thread tough. I mean I just don't see how anyone in their right mind would consolidate those 5 payments. Risk far outweighs reward im afraid.

[J.Celifarco]

320k in balance 250 gross = SCREWED

People are doing some crazy things around the industry but this might be too far out there.. I dont see anyone in their right mind consolidating 320k in balances for someone who stacked 4 times on their first advance.. this seems like a lost cause

[J.Celifarco]

dp Fund, the scenario you described is much more doable than the one originally described in this thread tough. I mean I just don't see how anyone in their right mind would consolidate those 5 payments. Risk far outweighs reward im afraid.

didnt even see this we basically said the same thing anyone who would do this is insane

[AndyYSCISOdept]

didnt even see this we basically said the same thing anyone who would do this is insane

Although, everytime a line is drawn in the sand, some Noob puffs up their chest and takes a "flyer"; and heck sometimes it works out, (see: ACH Deals circa 2008)

[WhoisKingsley]

Let's take a step back and see only the details we know- the balance owed and the deposits. How the heck are we coming up with a conclusion based on this alone?!? Every file is a case by case and I know one situation right now that three balances were consolidated for a monthly payment of HALF of what was owed- with 4 more balances. In "consolidation" cases- Yes, Financials speak louder than words but you have to represent the business at this point and NOT treat it like a regular MCA. To the merchant, it looks like we are consolidating but it isn't the "consolidation" definition they think of when it comes to other types of financing.

Consolidate= combine into a single advance/loan
Refinance= Finance AGAIN, with a new loan/advance at a new rate or term

We are looking at this all wrong. As a whole- our industry key players don't work closely enough to "consolidate" -we are refinancing in a sense and paying off to have full control of ONE NEW advance or loan- usually with a no stack addendum.

So, for this merchant to be "consolidated/Refinanced/monetize" (*need new name for this type of product instead of confusing merchants on what it really is) there are pieces of the puzzle that need to be known other than just the balances and monthly deposits. Again- it's not an MCA that you are looking for anymore and if you treat it like one, you will get the same answers and declines.

Case by Case Basis on all files. Industry, Location, Assets, Debt, and Projections play a HUGE part in qualifying anyone with multiple advances that need to LOWER their payments. Get that information, represent your merchant with that information and your more than likely to push it through.

[AndyYSCISOdept]

^ Can I get the cliff notes of this reply? LOL

[J.Celifarco]

Let's take a step back and see only the details we know- the balance owed and the deposits. How the heck are we coming up with a conclusion based on this alone?!? Every file is a case by case and I know one situation right now that three balances were consolidated for a monthly payment of HALF of what was owed- with 4 more balances. In "consolidation" cases- Yes, Financials speak louder than words but you have to represent the business at this point and NOT treat it like a regular MCA. To the merchant, it looks like we are consolidating but it isn't the "consolidation" definition they think of when it comes to other types of financing.

Consolidate= combine into a single advance/loan
Refinance= Finance AGAIN, with a new loan/advance at a new rate or term

We are looking at this all wrong. As a whole- our industry key players don't work closely enough to "consolidate" -we are refinancing in a sense and paying off to have full control of ONE NEW advance or loan- usually with a no stack addendum.

So, for this merchant to be "consolidated/Refinanced/monetize" (*need new name for this type of product instead of confusing merchants on what it really is) there are pieces of the puzzle that need to be known other than just the balances and monthly deposits. Again- it's not an MCA that you are looking for anymore and if you treat it like one, you will get the same answers and declines.

Case by Case Basis on all files. Industry, Location, Assets, Debt, and Projections play a HUGE part in qualifying anyone with multiple advances that need to LOWER their payments. Get that information, represent your merchant with that information and your more than likely to push it through.

You are correct that all of those things matter but taking a bigger step back I am saying how many of these consolidation banks are going to take a 320k risk on a deal that had 5 positions that would have a daily payment that would be well north of 20% of gross. Yes we dont have all the information but just with the info we have this seems to be way more risk then a bank would be willing to take

[Chambo]

You are correct that all of those things matter but taking a bigger step back I am saying how many of these consolidation banks are going to take a 320k risk on a deal that had 5 positions that would have a daily payment that would be well north of 20% of gross. Yes we dont have all the information but just with the info we have this seems to be way more risk then a bank would be willing to take

Exactly. The merchant has clearly demonstrated a willingness to stack. Nobody wants to take the risk for $300K+

Call it what you want, tyr out all your legalese you can, but the bottom line is, the risk outweighs the reward on getting paid back

[RichardGerard]

Sal the 320k isn't the issue and the 250k is less important than the Cost Of Goods Sold (think profit margin on a gas station). Dan Page has the ability to Bridge your client for 12-18 months by taking short term liabilities and extending them out a bit. If however the client has somehow shown a profit before Interest, Taxes, Depreciation, or Amortization and has strong Net Operating Income, there are several long term solutions depending upon the Business Model/Type, Guarantor, and Assets (if applicable).

The aforementioned information is needed to understand the right lender/solution for the client.

[WhoisKingsley]

You are correct that all of those things matter but taking a bigger step back I am saying how many of these consolidation banks are going to take a 320k risk on a deal that had 5 positions that would have a daily payment that would be well north of 20% of gross. Yes we dont have all the information but just with the info we have this seems to be way more risk then a bank would be willing to take

What is really scary is this. Those who "help" businesses and dig them holes are doing the same thing at the same time and expect to survive in this business.

Yes, risking paying off such a high balance is almost unheard of - but it does happen. Keep in mind there are thousands of investors who don't entertain the Brokers or Funding Companies that participate in this forum and we only speak on what we "know" or see as a pattern. Thus- why we are not innovating fast enough.

Syndication plays a big part in "consolirefimonitizing" (lol) You have some companies that really can break down a $320k balance because it is broken down by those who are willing to take the risk! Anything is possible and we can't look at a high balance as a stop sign.