[BTI]

In consideration of a Food and Beverage File, we are looking to obtain funding of $150K to $200k.

This company has been in business as a food and beverage distributor for over 20 years and does business with some key accounts. Some of their widely known clients like a Convention center, hotels, and major restaurants, private schools and such.

Their sales declined during the 2008 recession, and since then they have steadily shifted their business to the food service industry. By doing this they have been able to nearly double their sales profit in the last 3 years.

Because of the nature of their business, being a food and beverage distributor, they have receivables at 45 to 90 days out.

Compared to retail businesses, such as restaurants and merchandise stores, which can obtain a cash advance from time to time, they have a bona fide need for a cash advance and financing. They are looking to cover their receivables which are out for a time period of 1 or 2 months.

Recently, they have managed to pay off all their debts, a small judgement, and have no tax related liabilities.

Additionally, they have obtained a factoring arrangement, which has and will continue to increase their cash flow. The goal is to attain a level where, like a retail business, they are paid next day. However, like every business they are in need of funding to continue expanding.

The bank statements for the last 6 months have been decent however, in the last 3 months, there have been various negative days. This has not affected any of the ACHs which were all covered by them and the bank:

May 3 negative days
June 9 negative days
July 6 negative days
Aug 2 negative days
Sept 2 negative days
Oct 15 negative days
Nov 14 negative days
Dec 5 negative Days
Jan MTD 1 negative day


There was a spike in negative ending balances due to preparing and paying off a cash advance. During that time they were also preparing their financials in order to obtain the factoring arrangement. Unfortunately, this coincided with what is considered the slow period in their industry.

It should also be noted that their bank has an intraday running total which is not reflected by the end of day balances. As previously stated the bank does pay ACHs first, this information can be verified by reaching out to their banker.


Highlight Financial Information:

************************************************** ************************************************** ************************************************

monthly Totals
Date Gross receipts
expenses
May-15 376,668.75 375,566.48
Jun-15 573,162.54 578,031.26
Jul-15 596,040.29 591,393.19
Aug-15 618,156.94 614,413.77
Sep-15 503,900.72 505,414.26
Oct-15 535,931.39 550,216.47
Nov-15 487,031.70 486,638.53
Dec-15 628,582.95 616,762.75


************************************************** ************************************************** ************************************************** *


Food and Beverage
Profit and Loss Comparison
2013 to 2015


P&L P&L Interim P&L Projected P&L
2013 2014 5/2015 to 9/2015 2015
$ 3,129,128.00 $ 3,907,833.00 $ 2,388,828.52 $ 6,187,065.87


650,457.00 784,550.00 432,262.89 $ 1,119,560.89



-40,758.00 174636 143,580.59 $ 371,873.73

[Funder Mark]

How much is the client looking for? What kind of term?

[WhoisKingsley]

Brain picks out points:

looking to obtain funding of $150K to $200k.

they have receivables at 45 to 90 days out.

cover their receivables which are out for a time period of 1 or 2 months.

obtained a factoring arrangement, which has and will continue to increase their cash flow

Question:
When does their factoring arrangement hit? Which (if not all) receivables will it cover?

Their Nsfs in the past should have nothing to do with this deal if they are distribution- Were they profitable last year?

[Kevin Henry-Seacoast]

Hi Brian,

If they obtained a factoring facility, why are they in need of additional funding? Are they select factoring? Are a lot of their receivables ineligible? Are they not getting a high enough advance rate? Is their current factor financing inventory to increase availability?

Best,

Kevin

[BTI]

10 months Ideally. PM me and we can begin the underwriting.

[BTI]

Kevin,

This is more for a 2nd position funder, or later you can take 1st position and factor their AR. PM me...

[BTI]

Correct...This deal is good. They have already started factoring for 2 months now. We simply are looking for a 2nd position...And you are correct the factoring makes the 2nd position stronger.

PM me

[Kevin Henry-Seacoast]

Sent PM. Perhaps we can come up with a better facility that does not require the other funding.