[GHen]

Hey guys,

I have a deal here that I've been trying to find a home for, but can't seem to find one yet. Any idea where it'll fit?

Merchant has one position. Funded around 5-6mos ago $400,000 / 1.20 / $480,000 payback on a 15mos term. Merchant is looking to buyout current position (only wants ONE position).

Current Balance as of 7/26/16: $287,600
Sole Prop
Credit: 728
State: TX
Industry: Wholesale Distributing
Monthly Revenue: $850k-1Mil


Any takers?

[Kevin Henry-Seacoast]

Hey guys,

I have a deal here that I've been trying to find a home for, but can't seem to find one yet. Any idea where it'll fit?

Merchant has one position. Funded around 5-6mos ago $400,000 / 1.20 / $480,000 payback on a 15mos term. Merchant is looking to buyout current position (only wants ONE position).

Current Balance as of 7/26/16: $287,600
Sole Prop
Credit: 728
State: TX
Industry: Wholesale Distributing
Monthly Revenue: $850k-1Mil


Any takers?

Would they consider factoring or an asset based line using accounts receivables and inventory as collateral?

[Michael I]

try dan page
Dan Page dan@fundingstrategypartners.com

[GHen]

Possibly. I know they received an collateral based offer of 750k 5yr term (not sure if it was a legit offer because it was just an email to them from someone they never dealt with), however I have all financials

[GHen]

I tried with Dan, not a good fit because profit margins were too small. Thanks though

[Michael I]

I tried with Dan, not a good fit because profit margins were too small. Thanks though

did you try bfs

[GHen]

did you try bfs

Yes. Current balance is too high. They don't feel comfortable paying it off yet. Maybe when they're closer to 200k.

[dpFund]

try dan page
Dan Page dan@fundingstrategypartners.com

Thank you for the shout-out Michael.

GHen- This is a possibility. The topline revenue sounds like it is there. It just depends upon whether the net income is there to match it.

I do a lot of consolidations, paying off existing MCA and providing cash-out. Typically a twelve to eighteen month term, with early pre-pay available any time after six months (no fees, penalties or interest, client can just pay remaining principle and get out). Payments are monthly, not daily.

We would have to get our arms around the sole proprietorship. While I don't necessarily have an issue with the business structure, it is moreso a question about how the business is run. I cannot fund a deal where if the sole proprietor somehow meets with a tragedy, the company is out of business (like a single practitioner dentist). If the numbers work and we can get past the sole proprietor issue, there is a decent chance we can make it work.

Feel free to reach out.

Best,

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

[dpFund]

did you try bfs

Ha! Just saw the post where we already talked. That is the challenge with the forum...I don't recognize everyone's user name!

[bdshaw]

I think Kevin has the correct approach. Except for real estate I can't think of any other collateral that could form the basis if a 5 year loan.
Depending on the industry your client may be able to utilize their inventory and accounts receivable to collateralize a line of credit.
Bob Shaw
rshaw@advancecredit.com
734.929.3800

[Kevin Henry-Seacoast]

Possibly. I know they received an collateral based offer of 750k 5yr term (not sure if it was a legit offer because it was just an email to them from someone they never dealt with), however I have all financials

GHen,

Please give me a ring on this.

[VFG]

One thing to keep in mind is that this business operates as a sole prop. Not many factors welcome a facility this size under a sole prop.

Happy to propose on this if your client considers factoring.

[RichardGerard]

Guys: this one is tough.. COGS is very high (over 90%), there are no receivables to leverage, as George mentioned its a sole prop- with negative equity on balance sheet...\