[csbdave]

Who funds seasonal businesses?

I have a prospect in the construction industry that did $675k in revenues in 2015 and is expecting $2.5 mill in 2016. The issue is that there were no deposits in January or so far in February. Oct-Dec deposits were 41k, 24k, and 44k. Many years in business, 700 credit score.

He's looking for $50k, and has mentioned paying off the loan by May.

[CreditGuy]

If it is Feb and he wants to pay it off by May, prior year's revenue from Oct-Dec doesn't mean jack ****. What were revenues Mar-May of 2015? Once you know that, you will know if what he wants is feasible.

[Cfairbank]

what state and what is actual TIB? Do they have any executed contracts for near term work they could provide? If it's a state we can lend in, we can structure a deal if there are contracts in place.

Agreed with credit guy, key is first half of 2015 (we would request at least full year 2015, and with zero deposits in 2016, we would possibly even request first half of 2014).

[csbdave]

The construction company is located in California. 20 years in business.

2015 numbers: Jan 24k, Feb 62k, March 67k, Apr 10k, May 43k, June 10k.

[MCA]

Seasonal Construction is already tough enough but your numbers seem to be off. You provided 9 months of 2015 that add up to $325k but state they had revenue of $650k in 2015. So I assume they have revenue of another $325k in July, Aug, and Sept of 2015?

Also you state they had rev of $24k and $62k in Jan/Feb of 2015 but then state they had NO revenue in the same months of 2016. That is not a good sign. Oh and they are claiming to quadruple their revenue this year and will do that in the next 10 months since the first two had no revenue.

Where there is smoke there is usually fire....

[Cfairbank]

Unfortunately, i agree with MCA. No chance to get a cash advance for this, but they may be able to leverage that credit score to get a loan (personal or business). If they had contracts for upcoming work and they were in a state we offered loans in (we don't in California), we would have potentially been willing to structure something around executed contracts (we don't need to factor them or the work to be completed). Assume there is a lender that does lend in California that would look at it like we do, but I unfortunately don't have a good recommendation.

[aredmond]

So the guy has been in business for many years, did 675k last year. Has ZERO revenue MTD and expects to quadruple his annual sales this year to $2.5 million? What changed in his many years of business? He finally figure out how to bid on jobs? This post cracked me up. In the MCA world two things always ring true. Underwriting doesn't care what you think you are going to do they only care what you did. Second point, Most recent most relevant. As in the most recent month(s) is what matters most. Good luck on this one.