[tshah]

Hi all,

I have a merchant in trucking for the past 45 years, averaging $600k/mo. He has been overdrawn in his bank account every day for the past year - however, he has overdraft protection set up. He also has strong credit.

He has 5 balances totaling about $290k and wants to refinance and/or consolidate it all. He definitely wants to net money on top as well. He needs these funds ASAP. Is there any one who will do this?

Merchant definitely will not consider any collateral options. The biggest issue I am facing is the excessive negatives in the bank.

[rick_clsfunding]

If the company is profitable, Dan Page may be able to help:

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

[Zach]

With excessive negative days, I don't see many options here. Let's convince him to use some real estate and WBL can get it done for him

[nrh1lp]

If the merchant really is negative everyday you are going to have a hard time consolidating and netting additional capital without WBL or an ABL loan. How far in the red is the merchant? Typically with deals like this the best long term options are to get a large enough advance to get the acct positive, keep it positive, and then go for a term loan and get out of the MCA space all together once the banks look healthy enough. That is just my two cents though

[FUNd]

he has been overdrawn in his bank account every day for the past year.
He definitely wants to net money on top as well.
Merchant definitely will not consider any collateral options.

smh. Razor sharp this one.

[RichardGerard]

Sounds like the client also has a Factor set up as well, and he likely has clients that are pushing past the 90 day chargeback period.

At 600k a month, and negative for a year- my guess is that debt structure is just a small part of the equation..

There are ways to help, but likely not what they want to hear

[bdshaw]

Your issue is not a consideration
outside of the Advance space.
Richard is right or to put it another way all his assets are presently pledged as collateral. Your client might be better off considering refinancing the entire company including vehicles. They might be able to get the equity out of the vehicles to pay off the existing advances. That would result in a cleaned up balance sheet and eligible for additional advances.
Bob Shaw
Advance Credit Funding Corporation
rshaw@advancecredit.com
734-928-3800

[dpFund]

If the company is profitable, Dan Page may be able to help:

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

Thanks for thinking of me Rick,

While consolidations have become my bread and butter, I will admit to being gun shy about a client that has negative balances every day for a year, especially since he needs more money, and needs it ASAP. Yikes.

The client would need to present a very compelling case about why this is happening and what is going to change for them, going forward.

Happy to talk and see if there is a path forward.

Otherwise, he should be talking with Zach.

Best,

Dan Page
dan@fundingstrategypartners.com