[RogueCaliISO]

Here is my dillema......

I was THIS close to funding a deal for two doctors that are friends of my best friends father (irrelevant info? TMI?) for 250k @ 1.35 for 10 months @ 12 points with Rapid Advance

ONE of the doctors has a personal tax lien for 500k that is in a payment plan that arose form a trust account that was dissolved incorrectly back in 2010. I have IRS letters AND a letter from their CPA explaining the situation and in a few months they will be able to apply for an offer and compromise to reduce this tax lien drastically.

Two things happened with this surgical center which resulted in them actually needing a cash advance....

There was some issue with Athna insurance and the way they pay out which caused a huge backup in their receivables -- apparently a lot of doctors offices are having to deal with the change in their process for the year...

Anyways.... the other doctor (they are brothers) will personally guarantee the advance -- my shop will syndicate up to 50k on the deal to make a solid lender out their comfortable moving forward.... their checking account is backed by a million dollar CD with the bank... so they never cared or even flinched if their account went negative...

now that they need an advance my lenders are worried about the personal tax lien and the negative days in the checking account or because of the fact that the business isn't showing as much deposits as it was in 4th quarter of 2015 (if you understood the industry, you would understand that prospective patients wait till end of year when their deductibles have been met in order to have major surgeries if they can afford to wait) hence why they had a ton of expenses in January associated to equipment, inventory, and payroll. They have receivables in the 500k+ range...

AND I AM HAVING THE TIME OF MY LIFE FINDING A LENDER THAT IS COMFORTABLE WITH ALL OF THIS!!!!

THEY WILL PERSONALLY GUARANTEE THE LOAN! I'M PUTTING IN 50k!!! I let the doctors down MAJORLY by wasting a week of their time and a lot of their energy talking to the lender, their CPA, and their assistants to get me all the documents I need, sign paperwork for tax guards, get letters and documents from their CPA... have a site inspection done... only for the deal to fall through as we were on our way to the bank to deposit our 50k......

I need someone out there that can move FAST..... TIME IS CRUCIAL right now.... THESE DOCTORS ARE MULTI MILLIONAIRES AND ARE ACTUALLY LAUGHING THAT THE LENDERS I'M WORKING WITH ARE GIVING THEM SUCH A DIFFICULT TIME!!! ITS KILLING ME!


Who out there wants to start a funding relationship with a KILLER, SUPER INTELLIGENT duo of experienced doctors, that are working on expanding and growing their already established business?!

They wanted to pay the capital off in 4 - 5 months and take advantage of the early payoff discount presented to them in the contract....


someone please help me for goodness sakes...

ONLY SERIOUS REPUTABLE LENDERS.

[FUNd]

Why, if they have a million dollar CD with the bank, are they not paying the IRS with it, and fixing the cash flow issues on their own? They would rather earn 1% on the CD and pay 35 cents on the dollar for a cash advance and eat the penalties and interest that are racking up on that 500K with the feds?

What's missing here?

By the way, the deal didn't fall out, it was never approved. Rapid underwrites files backwards.

[RogueCaliISO]

Why, if they have a million dollar CD with the bank, are they not paying the IRS with it, and fixing the cash flow issues on their own? They would rather earn 1% on the CD and pay 35 cents on the dollar for a cash advance and eat the penalties and interest that are racking up on that 500K with the feds?

What's missing here?

By the way, the deal didn't fall out, it was never approved. Rapid underwrites files backwards.

They aren't dumb guys... there is probably a very legitimate reason why they are not doing that.


Additionally, their accountant was very confident in the offer and compromise wiping out all the fees and interest for the lien.

[omegafund]

Factor their insurance receivables.
I know a couple factors that will do this

bzuniga@Omegafund.com

[FUNd]

They aren't dumb guys... there is probably a very legitimate reason why they are not doing that.

I know these doctors are the smartest guys, ever, but they don't pay their taxes, and the IRS is smarter. Underwriters don't like that. Might just want to ask the question.

[omegafund]

We have funded lots of doctors. Smart but not always financially savy. The IRS is not smarter just no mercy, if the right person smells blood they come after.
Just a guess but the Doctors might be listening to an accountant or attorney and feel they can knock down that 500k back taxes to less than 70%. It can happen

[OC Funder]

They aren't dumb guys... there is probably a very legitimate reason why they are not doing that.


Additionally, their accountant was very confident in the offer and compromise wiping out all the fees and interest for the lien.

I wouldn't touch it. I'm always suspicious of merchants/borrowers who have an explanation for everything and why it's not their fault. If it was just the tax lien then fine, maybe an honest mistake was made and they're trying to rectify. But being frequently in the red shouldn't be excused just because they have a large CD... they have cash flow problems, plain and simple. They blame that on ONE insurance company (known to pay well and pay fast btw) changing their payout protocols, but would you say that all or even most of their receivables are controlled by just Aetna? On that note, anyone in healthcare will tell you that billable receivables and collected payouts are two completely different numbers, so the 500k is not impressive. The question about not liquidating the CD is legitimate, and I would guess there's a concerning story behind it. Seems like too many question marks to me.

[Michael I]

Although I can't stand the guy for always coming on random threads and spamming on here . You should reach out to pro med . They have a program where they will lockbox his insurance payments and take out a percentage so they can ignore the nsf .

[RichardGerard]

I agree with the Doctor's here. This one isn't hard at all. Truth is that MCA/ACH debit Underwriting does not reflect Assets or Global Solvency- only liquidity.

While ProMed has strong programs, they will not be able to wrap around the Tax issues here. We work with several partners that will be able to either provide a LOC off the receivables and/or a loan to address their needs.

If you want this one done swiftly- reach out..

Richard 516 510 3855

www.businesscapitalconsultants.com

775 Park Avenue Suite 255
Huntington, NY 11743

[bsmith]

Capital Stack helped us fund 250k to a merchant w/ 200k or so in tax liens on a PP. Give them a call and see what they think, they also allow syndication. Maybe I missed it but what is the monthly gross revenue?

[bdshaw]

Nick:
Something seems missing. Why would the bank requires a $1.0 million CD to secure a demand account? My guess is that the CD is securing something else, possible equipment or a line of credit. Do you have a balance sheet you may share?
Thanks, Bob

[FUNd]

This is just another example of someone who needs a sales manager and a comprehensive training program, not his own ISO.

[RogueCaliISO]

2015 balance sheet.jpgpage 1.jpgpage 2.jpgpage 3.jpg

[RogueCaliISO]

let me know.

[bsmith]

2015 balance sheet.jpgpage 1.jpgpage 2.jpgpage 3.jpg

I can't see the business name or phone number, can you re-post photos?

[rick_clsfunding]

The million dollar CD is conspicuously absent from the balance sheet...

[RogueCaliISO]

The million dollar CD is conspicuously absent from the balance sheet...

I have bank statements for it. Its setup with a special arrangement with the bank to secure any overflow on their business checking accounts.

[FUNd]

I have bank statements for it. Its setup with a special arrangement with the bank to secure any overflow on their business checking accounts.

A $1 million cash overdraft account, you're right, that is special. Makes no sense dude. Let me give you a quick tutorial in sales, because I'm in a good mood. You don't understand this deal - you are so starstruck that these genius, super smart, amazing, successful, rockstar level medical doctors are even talking to you, you aren't asking the right questions.

You will never fund a deal you don't understand, at least not one of this size. That 500K tax lien with no pay plan will be your ultimate demise, and UWs do not care what some CPA has to say about it. You will spin your wheels and this will end up in the round file. Move on dude.

[bdshaw]

Nick, based on the balance sheet I think you can get what the docs need plus protect the lender from the tax lien.
Please send me the file and I can tell you quickly. include the agreement for the $1.0 million.
Thanks, Bob

[RogueCaliISO]

A $1 million cash overdraft account, you're right, that is special. Makes no sense dude. Let me give you a quick tutorial in sales, because I'm in a good mood. You don't understand this deal - you are so starstruck that these genius, super smart, amazing, successful, rockstar level medical doctors are even talking to you, you aren't asking the right questions.

You will never fund a deal you don't understand, at least not one of this size. That 500K tax lien with no pay plan will be your ultimate demise, and UWs do not care what some CPA has to say about it. You will spin your wheels and this will end up in the round file. Move on dude.

I understand this deal very well and know the doctor personally. So it's not a starstruck situation, this is me helping a colleague of my fathers with a situation that arose from Athena insurance out of the blue.

The tax lien IS in a payment plan, and I am so confident on this deal I am putting in 75k of my own capital to make it happen for him.

I'll PM you in a couple months with the results. If I lose I will bow down to your eternal MCA genius greatness.

[Alleon Healthcare]

If the providers have 2-3 weeks, we can set them up with an AR factoring facility or line of credit. If not, and you are still looking, shoot me an email and I will refer you to a healthcare focused MCA lender.