[monegs]

Hi I have a merchant who owns a junkyard which grosses 1.2mm yr and has inventory worth 1.8mm as well as two licenses valued at 300k. He has a buyer for the business,wants to get lent on his equipment and have the buyer pay it off . He has no problem being personally liable for the loan. He is looking for 1.8 mm but will take whatever he can get and the buyer will fund the rest himself.

[ridextreme]

he has 1.8 million dollars worth of junk?

the buyer is going to have to borrow the money, not the seller.

[bdshaw]

If the buyer can show that they will be in a position to pay then probably they will be co-borrowers or one will guarantee the other's loan depending on the financing structure.
monegs, if your client has $1.8 million in inventory they will have a list and would be able to tell us how they came up with the number. I did a junk yard whose collateral was what he called junk. However these were parts stripped from autos and had a readily attainable value. In that case we were able to finance the inventory alone but did take a lien on everything.
There are a lot of variables in this type of deal. Dies the property go with the sale and if so does it have anything other than minimal value? Since they have gross sales of 150K you will not get a great deal from that and this type of property is usually located in the worst part of town.
I think you will only be able to fiance the inventory and that's doubtful for a number of reasons.
Why not give me a call and I can explain my thinking.
Thanks, Bob
rshaw@advancecredit.com
734.929.3800