Results 1 to 23 of 23
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04-28-2016, 08:03 PM #1
- Join Date
- Mar 2015
- Posts
- 47
42% Ownership
I need a lender that will allow a 42% owner sign for an advance. His partners don't have the balls. Pm me if you're a direct lender and you can structure this deal. This business averages $250k/month in revenue.
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04-28-2016, 08:17 PM #2
- Join Date
- Apr 2015
- Location
- Louisiana
- Posts
- 299
42% Ownership
Search bar works well to get answers much faster when topics are covered dozens of times, but try LoanMe and Can capital.
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04-28-2016, 08:17 PM #3
CAN
WindsetZachary Ramirez – CEO
Phone: 562-391-7099
Email: zach@zacharyjosephramirez.com
1661 N. Raymond Ave #265
Anaheim CA 92801
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04-29-2016, 09:36 AM #4
Thank you very much Zach for the plug....unfortunately we changed our ownership requirement Nov 2015. We currently require 66% to consider.
Paul J. Phillips
Business Development Manager
V: 855-761-8299 ext 280
F: 855-631-0107
Windset Capital Corporation
4168 W 12600 S, 2nd Floor
Riverton, Utah 84096
a Chesswood Group Limited company
www.windsetcapital.com
paul@windsetcapital.com
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04-29-2016, 10:10 AM #5
- Join Date
- Jan 2016
- Posts
- 435
I believe loanMe only requires a 25% ownership if they are in the right state
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04-29-2016, 10:52 AM #6
- Join Date
- Apr 2016
- Location
- Florida
- Posts
- 133
why would a majority owner allow a minority owner to sign anything related to the business????... Sounds funky to me...
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04-29-2016, 11:10 AM #7
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- Jul 2014
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- 1,746
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04-29-2016, 11:50 AM #8
- Join Date
- Mar 2015
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- 47
You make assumptions...not smart in this business!
There are more than one owner. The owner that is willing to sign has 42%, which is the largest stake. The other owners has 10% and lower.
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04-29-2016, 11:51 AM #9
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- Mar 2015
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- 47
Funny guy!
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04-29-2016, 01:19 PM #10
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- Jul 2014
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04-29-2016, 02:14 PM #11
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04-29-2016, 02:22 PM #12
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- Jul 2014
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04-29-2016, 02:24 PM #13
It doesn't matter what % they are really so long as they have the authority to bind the company. That's something that must be underwritten.
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04-29-2016, 08:32 PM #14
- Join Date
- Mar 2014
- Location
- Ann Arbor, Michigan
- Posts
- 1,289
42% Ownership
As a lender I was considered prudent to be skeptical of flip answers to serious questions.
The argument that the minority stakeholders don't have the courage to sign is too simplistic. I would think if there's a disagreement over entering into the agreement a lender is looking at potential future headaches they don't need. Even if the signor is authorized the warning flags are there.
I would pass.
Bob
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04-29-2016, 10:42 PM #15
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- Jul 2014
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04-30-2016, 09:13 AM #16
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- Mar 2014
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- Ann Arbor, Michigan
- Posts
- 1,289
42% Ownership
FUNd, you are absolutely correct.
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04-30-2016, 09:19 AM #17
- Join Date
- Sep 2014
- Posts
- 430
Being addressed by legal and being defensible are often mutually exclusive. There are plenty of times when our attorney says one thing and then we weigh the potential legal risk against the business needs and decide that the risks are outweighed by the benefits. CAN has probably done the same calculus. For a lender their size, if a few contracts get thrown out in court due to majority ownership disputing the debt and its benefit to the borrowing entity, that doesn't hurt them any more than a default. It simply gets baked into their loss rate over time. I would also add that CAN is originating high quality paper, so the likelihood of default and subsequent litigation that would open them up to such claims is smaller than a Yellowstone or Pearl type shop where the collection and litigation strategy is more important to earnings/capital preservation.
Also, CAN is no longer the largest direct lender in the space.
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04-30-2016, 11:12 AM #18
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- Jul 2014
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- 1,746
I don't think anyone was disputing any of this, and I appreciate the analysis. I think I was simplifying it down to the fact that it seems like a large percentage of people selling this product or in charge of an ISO don't even understand the basic fundamentals of underwriting criteria. It's shocking. The fact that this is even a debate is sad. I can only imagine the slew of lies and misleading information merchants are told by novice hacks in call centers costing jobs, financial ruin, and undue stress on merchants and the sector as a whole.
Let's not play semantics either, CAN is a huge player.
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05-02-2016, 12:32 PM #19
lendinghand
we will consider the deal so long as the minority owner has the authority to take on debt for the company under the business operating agreement, and have it notarized by the majority owner.
if you are interested in seeing what we can offer, please PM me.Anthony Diamond
Underwriter
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06-11-2016, 01:12 AM #20
- Join Date
- Apr 2016
- Posts
- 26
All of these percentage ownership issues are irrelevant when dealing with a general C-corp. In a C-Corp, the CEO, even with zero ownership can engage in loan contract so long as he has the power issued from the board(board resolution).
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06-12-2016, 04:41 PM #21
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06-12-2016, 07:26 PM #22
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- Apr 2016
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FUNd:
I take it that you have very little knowledge about corporate laws. I specifically mentioned about C-Corp. Here is a corporate law 101 for you:
In a C-Corp, the shareholders have no right to sign anything. The shareholders can elect board members; and the board, as a whole, can hire officers, such as CEO, CFO, etc. The board gives resolution(power) to the officers to perform day to day operational tasks for the company, such as seeking for finances.
If a C-Corp is to ever take on any financing, the contract will be either signed by the CEO or CFO. Shareholders or Board Members CANNOT sign in these type of contracts.
Of course in this MCA world, most of the business entities are sole-prop, LLC or S-Corp, which tie directly with the owners.
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06-12-2016, 07:31 PM #23
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- Jul 2014
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