[Stiina]

My client is looking for an interest only business growth loan for the first 18-24 months, with no prepayment penalty, as he has a guaranteed Grant from his state that will be coming between October of 2016 to July 2017. He has machinery and property to collateralize, and will have the means to gross a minimum of $100K monthly in 60 days. plus another contract coming that ensures $3 million annual gross, but he doesn't want to sign that until he has the means to run 24/7 and have enough raw material to run 24/7.

he is look for $2million but would be able to swing $1.5 million.

Please only respond if you actually have an TRUE i/o loan product.

[Zach]

How does he intend on paying the balloon payment at the end? Would the grant be for over $2MM?

[bdshaw]

This sounds like an ABL. We may be able to help you put this deal together.
Interest only for 24 months is not unusual in this arena nor is using the collateral you have mentioned.
Bob

[LCNYS]

How much does he have in equipment and what's the liquidation value approximately ?