[Quickfunder]

Merchant has a $80K balance w/ Kabbage.

Wants $100K. Any lenders who will fund without paying off Kabbage?

[r mirlis]

Merchant has a $80K balance w/ Kabbage.

Wants $100K. Any lenders who will fund without paying off Kabbage?

Any A paper lender would go in without paying off and consider it as a first position deal, if they like the deal that is.

[dfoxworth]

At Breakout Capital we don't require lines of credit such as Kabbage to be paid off, though we will factor in the monthly payment to our debt service cost ratio (payment as a percent of the monthly revenue) where we usually target 15% or less (Absolute max is 20%). Few other questions: What State are they in, what industry and what's the monthly revenue?

Feel free to reach out to me directly to discuss the deal and our product further.

Dion Foxworth
Sales Associate
Breakout Capital Finance, LLC
6849 Old Dominion Drive :: Suite 360 :: McLean, VA 22101
O: 703.462.9456
dfoxworth@breakoutfinance.com

[Michael I]

Any A paper lender would go in without paying off and consider it as a first position deal, if they like the deal that is.

that is not true . their are ones that will do it but plenty have diff. guidelines

[Quickfunder]

that is not true . their are ones that will do it but plenty have diff. guidelines

Can you suggest any?

[Michael I]

Can you suggest any?

yeah pm me . details of deal

[Quickfunder]

At Breakout Capital we don't require lines of credit such as Kabbage to be paid off, though we will factor in the monthly payment to our debt service cost ratio (payment as a percent of the monthly revenue) where we usually target 15% or less (Absolute max is 20%). Few other questions: What State are they in, what industry and what's the monthly revenue?

Feel free to reach out to me directly to discuss the deal and our product further.

Dion Foxworth
Sales Associate
Breakout Capital Finance, LLC
6849 Old Dominion Drive :: Suite 360 :: McLean, VA 22101
O: 703.462.9456
dfoxworth@breakoutfinance.com

Dion, can you clarify all this? What do you mean you will factor the monthly payment to your debt service cost ratio? Can you give me some examples?

[Michael I]

Dion, can you clarify all this? What do you mean you will factor the monthly payment to your debt service cost ratio? Can you give me some examples?

a person can only afford to pay so much per month total . so it wont give the guy a decline but will lower the offer .

[J.Celifarco]

Dion, can you clarify all this? What do you mean you will factor the monthly payment to your debt service cost ratio? Can you give me some examples?

What he is saying is what most of the A paper lender do.. For example if a company will accept a 15% gross holdback and the kabbage loan has a 5% gross holdback then the funding program will be based on a 10% gross.

Short simple version they will lower the funding amount to account for the payments to kabbage so the merchant can afford the loan and not have their cash flow squeezed.

[dfoxworth]

Dion, can you clarify all this? What do you mean you will factor the monthly payment to your debt service cost ratio? Can you give me some examples?

I'll make a few assumptions here since we do not know the terms of the deal yet:
$100k a month in rev
$100k loan amount for 12 months at 1.25x
$5k a month cost for Kabbage LOC

Based on these assumptions, the payment back to Breakout would be about $481 a day or $10.4k a month. This represents about 10.4% of their monthly revenue. Though we are not taking out the Kabbage line, we need to include that payment into their total debt payments as a percent of revenue. At $5k a month, this increases the total debt payments as percent of revenue from 10.4% to 15.4%.

In this example, since the debt service cost (total debt payments as a % or monthly revenue) is about 15% we could consider the deal.

If you want to discuss this deal further, please email me or call me at 703-462-9456. Thanks.

Dion Foxworth
Sales Associate
Breakout Capital Finance, LLC
6849 Old Dominion Drive :: Suite 360 :: McLean, VA 22101
O: 703.462.9456
dfoxworth@breakoutfinance.com

[mcaguru]

All the above are great options...


if all else fails Cresthill Capital will make an offer in 3 hours and fund hours after contracts are back-in! will pay double digit commissions and be very light on stips.....