Wants to use franchise business for collateral

**Zach** · 04-27-2016, 08:28 PM

Hello,

I have a customer who wants to use their franchised business as collateral. Any funds out there consider deals like that?

**bdshaw** · 04-27-2016, 09:06 PM

This sounds perfect for a SBA loan.
Bob

**RichardGerard** · 04-28-2016, 07:25 AM

Hey Zach... While Bob is right because of the collateral requirements for the SBA there are other Lenders that will do the same on an expedited basis- IF the Financial data makes sense.

Feel free to touch base..

Richard 516 510 3855

www.businesscapitalconsultants.com

775 Park Avenue Suite 255
Huntington, NY 11743

**bdshaw** · 04-28-2016, 07:43 AM

Thank you Richard. I know too little about this area. Any help for Zack would also help me and others.
Bob

**RichardGerard** · 04-28-2016, 07:55 AM

Not trying to step on toes- only add perspective

**Zach** · 04-28-2016, 03:34 PM

Forgot to bring this up -- he has $500K of business tax liens. Not sure how I forgot such an important factor, lol

They do $250K per month with high average balances

**bdshaw** · 04-28-2016, 06:28 PM

I'll withdraw my SBA reccomendation.

**bdshaw** · 04-28-2016, 06:30 PM

I think you have added perspective.
Then again, so has Zack.

**RichardGerard** · 04-29-2016, 06:13 AM

Zach,

If the Tax Liens are in a payment plan (in writing) SBA - and many other Lenders will write the paper. If they're not, and the have those high daily balances- they should try to negotiate a payment plan.

FYI- SBA will completely Underwrite the deal and close it once the payment plan is in place- as will other lenders

**biggr** · 04-29-2016, 09:55 AM

How much does this merchant want? We may have an interest only if he is in payment plan on the tax liens,,, Otherwise No..

We did something similar awhile back.. let me know pm please!!

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