[Fundyman]

I have a client in need of a line of credit up to $1.5MM(or even2.5) with the following criteria:

• Roofing Co.
• 14 yrs in Business
• Decent credit
• Current avg. monthly sales=$1.5M
• Over $800,000 in A/R ($600K+ within 30 days)
• Over $13.5M in "FOR SURE" future jobs

This company is doing nothing but growing exponentially, & needs the lender who is willing to grow with them.

If you are a DIRECT IN-HOUSE LENDER or know of one who can do this type of deal,

then please PM me or email: solidmerchantsolutions@yahoo.com.

I swear if you're a broker & you waste my time, I'm airing you out on here. REAL DIRECT LENDERS ONLY. Not syndicators; not brokers.

[RichardGerard]

Good Morning Fundyman..

Given the inherent challenges associated with the Construction Trades, the fact that current AR is roughly 1/2 to 1/4 what the client seeks, and that you're not seeking external assistance- will likely make this a tough one to place.

Rather than seeing if there is a Direct Lender on this Forum that would want this, the question is: why would they?

Having said that: Depending on their clients, there are firms that can assist. True non notification ABL lines for this type of Business are challenging to come by- and even if one was arranged, the client would likely qualify for approximately 1M initially- Alleging all billing is substantiated and clients are credit worthy- with a first tranche of about 500-600k. As the 13.5M billing came in those #'s would go up- depending on billing procedures, and retainage etc..

It's not as if their inventory will be of value to a DIRECT IN-HOUSE Lender. This one won't be easy to get the client what he wants- but perhaps you can manage his expectations and start a relationship.

[CO1]

Well put Richard.

[bdshaw]

Fundyman, why talk disparingly of brokers, you are one. Besides the points Richard acuratly raises why, in an industry noted for slow payment, are their receivables representing 40% of the month.
Unlike advance deals these generally require experience in ABL to structure and present them.
For instance commercial finance uses particular definitions, what was their. ash flow last and the first 6 months of this year.
How much and what type of debt are they carrying?
What is the specific use for the line?
Bob

[Fundyman]

Good Morning Fundyman..

Given the inherent challenges associated with the Construction Trades, the fact that current AR is roughly 1/2 to 1/4 what the client seeks, and that you're not seeking external assistance- will likely make this a tough one to place.

Rather than seeing if there is a Direct Lender on this Forum that would want this, the question is: why would they?

Having said that: Depending on their clients, there are firms that can assist. True non notification ABL lines for this type of Business are challenging to come by- and even if one was arranged, the client would likely qualify for approximately 1M initially- Alleging all billing is substantiated and clients are credit worthy- with a first tranche of about 500-600k. As the 13.5M billing came in those #'s would go up- depending on billing procedures, and retainage etc..

It's not as if their inventory will be of value to a DIRECT IN-HOUSE Lender. This one won't be easy to get the client what he wants- but perhaps you can manage his expectations and start a relationship.

Rich,

You should know when I post what I post, that doesn't include you, as I forgot to PM you right after to hear your views. Please send me PM on this one. You're more like a mentor to me; not a broker. I am referring to those who send me random emails begging for the file, swearing they have the lender who will do the deal, but then proceed to shop the file to 30 different lenders, none who actually will offer anything other than an MCA...

[Fundyman]

Fundyman, why talk disparingly of brokers, you are one. Besides the points Richard acuratly raises why, in an industry noted for slow payment, are their receivables representing 40% of the month.
Unlike advance deals these generally require experience in ABL to structure and present them.
For instance commercial finance uses particular definitions, what was their. ash flow last and the first 6 months of this year.
How much and what type of debt are they carrying?
What is the specific use for the line?
Bob

Bob, I'm not talking down on brokers like yourself or brokers in general for that matter. My point is, I am ALREADY a broker. So many times, brokers come to me pretending to be direct, only to go shop the deal. That's what I'm referring to. In that case, I can already do that! lol

[RichardGerard]

Thanks Fundyman.. Let's talk about this one at your convenience.. I replied to your email

[dpFund]

Good morning Fundyman,

If you are unable to work out something with Richard then I would love to talk about funding your client.

As you probably know, I am a direct lender. While my product is not a LOC, I have a LOT of clients that treat us that way, using the money, paying it off/down, using it again, etc. We have clients we have funded many times over the period of a few years, fueling their growth.

My typical term is 12-18 months and clients can repay us any time after six months, with no fees, penalties or interest.

I am hesitant to mention this publicly...but we are in the early stages of rolling out a new funding product with a 30 month term and overall interest rate in the 13% range over the life of the 30 month term. The client must be profitable in 2015 and 2016 YTD, with minimum 2015 revenue of $3MM, and minimum funding amount of $500k, so it may perhaps be a good fit for your client.

Feel free to reach out if you would like to discuss.

Best,

Dan Page
dan@fundingstrategypartners.com
Direct: (303) 938-8280

[RichardGerard]

Interesting Dan.. Will you be a Chartered Bank or an Industrial Bank?

[VFG]

Adding to what Richard posted, if your client is growing at such a fast speed, a lone of credit may slow down the growth of your client. ABL or factoring may be an interim solution while your client grows aggressively and then you can graduate him to a more traditional financing vehicle.

If your client is open to factoring i have a good construction factoring company i can recommend. If interested, feel free to DM me.

Good luck!

[VFG]

Sorry meant to type a LINE of credit.

[Fundyman]

Adding to what Richard posted, if your client is growing at such a fast speed, a lone of credit may slow down the growth of your client. ABL or factoring may be an interim solution while your client grows aggressively and then you can graduate him to a more traditional financing vehicle.

If your client is open to factoring i have a good construction factoring company i can recommend. If interested, feel free to DM me.

Good luck!

Thanks for the feedback, VFG.