[danra]

Right now we have a client (700 + credit) with a 12 mil per year high profit business (over 5 years old) that is in an outside the box industry, who has 2 advances totaling just over 800K owed.
He has an offer of 1.5 MM over 2 years at 1.27 per year and the lender is allowing a post funding fee sheet of 3% with no problem.

Here is our problem: The broker who got the client the advances is promising the client 3 years and the same or more money. And I believe that he is blowing smoke up the clients you know what.

I have years of experience at this and do not believe that anybody is going to buy out over 800K in 2 balances (meaning the client is a stacker and is high risk as he violated his first advance contract), and give over 600K in working capital in top of it going out to a 2 year term on 1.5MM - so if anybody that is a LENDER can tell me that there is a better offer than 13% of the annual revenue for 2 years for a stacked client with over 800K in balances in an outside the box industry, I sure would like to hear it.

ALSO NOTE:

No outstanding AR
Only collateral is specialty machines that may be hard to resell
Extra cash is used for company growth in to new territory

Based on this I believe that the 1.5MM 2 year 1.27 per year deal (with prepayments starting at 6 months) is an unbeatable offer; especially when you figure on the ability to charge fees on top of it.

If anybody has FACTS and not speculation or a bad attitude just let me know. You can PM me or post.

[Michael Jagiello BGF]

To the broker : good luck lol I'd say the 1.5 offer is just about untouchable given his balances. Tell the merchant to stop playing games, sign on the line, and send you on vacation for the inconvenience. I can't think of any lender that's gonna be able to come close to that

[Michael I]

close the deal . the other guy has no offer

[nrh1lp]

Only way someone is going to beat that offer is through a bank. Even then with limited to no collateral a bank most likely will not touch it. Like these guys said, you have a great offer for your merchant a lot of other places wouldn't even consider, sell it

[dpFund]

Danra - As you know, I would be standing in line to fund this fellow. But if he can get the deal you are talking about, he should grab it and run. I agree the broker is probably blowing smoke.