[BigIz]

I have a clothing manufacturer in California who does around $100K a month but only does around 4-5 deposits a month from one customer. Also, he was banking with Chase but just switched to BofA in mid March. He closed the Chase account last week.

He is looking for around 100K. Has been in business 8 years. His score is around 620. ADB 10K. No NSFs. No other outstanding loans.

I am looking for either an advance or term loan.

BFS declined because of 1 customer.
Did not submit to FC because he had a personal BK in 2010.
He had some State & IRS liens but they have all been paid off.

No he does not have any real estate to pledge as collateral.

[VFG]

This may be more of a factoring type of customer. Happy to assist if they are open to factor their receivables.

[bdshaw]

It sounds like VFG has hit the nail on the head. Factoring or even a term loan would not have to deal with problems you described.
What terms would like for the term loan and what will be do with the money?
Bob

[BigIz]

It sounds like VFG has hit the nail on the head. Factoring or even a term loan would not have to deal with problems you described.
What terms would like for the term loan and what will be do with the money?
Bob

He is looking to remodel and expand his current location. He is going after more customers. I think a 5 year term loan would be ideal. I only asked him for a portion of his taxes (2014, has not done 2015 yet) because I had submitted it for the advance and from the portion I received, he did $1,525,476 in 2014.

[brokerCompany]

5 year term, not happening. Become familiar with factoring and get your client on board.

[BigIz]

5 year term, not happening. Become familiar with factoring and get your client on board.

Would someone factor him with only 1 customer?

[brokerCompany]

Yes if a strong debtor /client merchant is working with. We have factored single concentration invoices.
Also loanme may consider but you have to be licensed since in CA.

Would be happy to help assist but we are a broker and would split fees across the board. Or you can work with one of the others..

Would someone factor him with only 1 customer?

[VFG]

We factor single debtor concentration deals and apparel is one of our strengths as we are a true non-recourse factor which works well with the industry.

[BigIz]

Yes if a strong debtor /client merchant is working with. We have factored single concentration invoices.
Also loanme may consider but you have to be licensed since in CA.

Would be happy to help assist but we are a broker and would split fees across the board. Or you can work with one of the others..

Hey, this may seem like a dumb question but I am not familiar with factoring. Say he gets paid within 30 days, if you buy his outstanding invoices at 80-90% would that not interrupt his cash flow next month because you are collecting the payment and not him?

[VFG]

Absolutely not. In a factoring relationship he would obtain an advance of 80-90% on an invoice due to be paid in 30-60 days, which in turn will accelerate the client's cash-flow and allow him to meet the next orders or pay its suppliers.

[bdshaw]

Iz, I think if you spend 10 minutes on the phone with one of us that practice in the ABL area you will understand factoring and maybe how other assets may be financed.
Bob

[brokerCompany]

Lots of unknown still
If all the invoices pay under 30 days than factoring might not be ideal for the client, especially if the one debtor is billed monthly with 1 invoice.
If merchant only waits under 30 days to get paid and that wait is not what is hurting client might see if other options.
If merchant would be constantly billing every month and waiting over 30 days to get paid on each invoice(S) it would be a great fit for factoring.

Factoring helps cashflow if their is constant billing monthly.

Hey, this may seem like a dumb question but I am not familiar with factoring. Say he gets paid within 30 days, if you buy his outstanding invoices at 80-90% would that not interrupt his cash flow next month because you are collecting the payment and not him?

[sigmundpannu]

You can try LoanMe the limited deposits aren't an issue since they do term loans.

[Kevin Henry-Seacoast]

Depends on the customer. We have provided factoring facilities for companies with 100% customer concentration.

[Matty Ice]

Dealstruck only cares about Bk in last 2 years.. try Dealstruck for a term...
!

[bdshaw]

I'm free now Is.
Bob

[LoanMe]

As stated by a few here; LoanMe can take a look at this.