[Will Sanio]

I have a customer requesting funding as follows:

Florida listed Trucking Co.
SOS start date 1/1/2016
Did not start generating revenues until April Statement 2016
March 2016 $0 Deposits
April 2016 $80,000 Deposits
May 2016 $180,000 Deposits

The Owner shows West Virginia Address and claims high 600's score.
There would need to be some verification work done, though the file
is permanently stuck unless someone says there may be a program

[Will Sanio]

The SOS start date was 1/1/2015 incorrectly listed as 1/1/2016

[WhoisKingsley]

There are MANY questions that need to be answered- feel free to call/email and I'll help you review so you know what to look for and ask a Merchant the next time you come across something like this.

Even though the biz has been open more than 6 months, it did not start generating rev. until April. =3 Months

Trucking is very risky. A 3 month generating company is even more risky. If you do get an offer, it will be a starter (not even close to his deposit amounts) and they are going to rape him on the rate.

YOUR BEST BET is to hook up with a invoice factoring company. He probably has contracts and upcoming jobs that can be factored. If he owns the trucks or needs a truck etc - equipment financing and leasing.

Hook up with alternative financial companies that you can use as an ancillary product if you merchant doesn't qualify for an MCA or won't obtain what they expect from an MCA. Yeah, the pay is less, but you will gain a customer and having an extensive portfolio of products for that specific industry will mean the difference when they or another company they refer to you needs help.

[bdshaw]

I agree with Amanda and offer our expertise to analyze what factoring and other Asset Base Lending might supply for your client.
My experience is that the entire file should be looked at, broken down into its component parts and they reviewed with an eye on how the various part interact with each other.
That sounds difficult but an experienced hand can do it with a few reports and well less than an hour. I'm happy to use Amanda as a reference.
Please contact me.
Bob Shaw
734-929-3800
rshaw@advancecredit.com

[Will Sanio]

Amanda,

Thank you for the reply. The customer had said they have a factoring co already. I asked if the factoring company was doing the job & they said Yes. They said they are leasing the trucks and do not own them outright.

Should I check with Bob on this? If so, I'll need to give the customer a quick buzz back & let them know there may be a possibility.

Will

[SCCNY]

Tell the merchant to wait until July and you'll get nice offer

[WhoisKingsley]

Amanda,

Thank you for the reply. The customer had said they have a factoring co already. I asked if the factoring company was doing the job & they said Yes. They said they are leasing the trucks and do not own them outright.

Should I check with Bob on this? If so, I'll need to give the customer a quick buzz back & let them know there may be a possibility.

Will

Def. go over everything with Bob.

In this situation (if he really needs the funds) the future contracts or receivables should be calculated, because Hey! We do fund based on future receivables right? Not many Funders will request copies of the contracting jobs that the trucking company has with the companies the Business delivers for and like factoring, fund based on that. I believe if the contract shows a term in which the trucking company will be delivering should show a promise of payment of X amount of time the Business will be open due to existing jobs...

Underwriters: Yes? No? Maybe?

[WhoisKingsley]

Tell the merchant to wait until July and you'll get nice offer

Why wait for July? Who created this "rule" of 3 months in Business? If the company has contracts in place and growing revenue - why should you wait another 15 days? What is going to change other than the fact that you will have a complete Bank statement?

Again, different industries should have different UW rules. YES, trucking is super risky and I have seen MANY default- but in a situation when a company needs a "cash advance"- maybe there should be a 1 position max on companies open under 6 months?

[bdshaw]

Amanda you are absolutely correct. Timing is everything. We will be announcing a unique program for financing certain unearned accounts receivable. Call the Delancey Hybrid it combines the features of traditional factoring and new alternative financing products. The bottom line is we can fund services and goods, in many cases, before they are delivered.
Bob

[bdshaw]

Sorry, no contractors or medical insurance.
Bob

[SCCNY]

Well he said he doesn't think he has a chance at getting this funded right now i think hed have a pretty great chance about 10 business days from now..

[pccapital]

I sent you a PM.