[loanseller]

Hey guys. I have a shipping and receiving grocery warehouse client doing 180-210k per month. (sic 5149) He has 145k in staked balances. 7 Positions totaling this amount. She is looking to consolidate, and net 50k. I am having a difficult time placing the deal. Any suggestions? Thanks

[John_FMS]

Hey guys. I have a shipping and receiving grocery warehouse client doing 180-210k per month. (sic 5149) He has 145k in staked balances. 7 Positions totaling this amount. She is looking to consolidate, and net 50k. I am having a difficult time placing the deal. Any suggestions? Thanks

7 positions? What is he/ she planning on doing with the $50k?

[Zach]

If the borrower has real estate collateral, we can facilitate this transaction for you. We normally lend 2-3X the client's gross monthly revenue.

[bdshaw]

Hey guys. I have a shipping and receiving grocery warehouse client doing 180-210k per month. (sic 5149) He has 145k in staked balances. 7 Positions totaling this amount. She is looking to consolidate, and net 50k. I am having a difficult time placing the deal. Any suggestions? Thanks

If your client offers net10 day credit terms or better we should be able to get it done and leave her in a better position to get advances in the future should she need them.
Bob Shaw
rshaw@delanceyfunding.com
734.929.3800

[golf2014]

Nobody is going to consolidate that many positions.

[WhoisKingsley]

Hey guys. I have a shipping and receiving grocery warehouse client doing 180-210k per month. (sic 5149) He has 145k in staked balances. 7 Positions totaling this amount. She is looking to consolidate, and net 50k. I am having a difficult time placing the deal. Any suggestions? Thanks

A few questions to ask when you have a file like this.

When was the last advance taken? If in the last 30 days, the Merchant may want to reconsider. Especially if the track record for the stacked advances are from multiple originators and very close together (time wise). There is absolutely NO reason for a Business to have 7 advances other than the fact that they willingly knew what they were getting in contract for and was swayed into taking each one. Probably with super high factor rates/commissions.

Any respected Investor/Funder will not take a risk on $150k in balances. The risk is too high in most situations where the positions were taken with knowledge of the damage it can do to the Company.

Don't let anyone tell you otherwise - There is a lot of "enabling" happening where "direct" companies are telling you they can- but can't. A Syndicated advance with multiple investors can possible assist but remember, any syndicated consolidation will not go out long term and each investor expects a return. Also, if an investor knew he was taking out that high in balances they would pull out of the deal. You're now looking at 9 months at over a 1.4X and possibly only a FEW balances would be taken out- leaving a consolidated daily payment and multiple stack payments. Also- that minimal consolidation of balances may come with clauses in a contract or your agreement that state the Merchant cannot go anywhere and you cannot help him further.

Does the Business have collateral? Tie in real estate to the deal and now you have something to stand on. No collateral = No consolidation.

If you want to review the deal, reach out. I can assist you in looking at the possible (i say that lightly) options and how to explain these options to your Merchant so they do not go onto the next and hit a dead end with the same issue!

[WhoisKingsley]

Talk to Bob or WBL or myself in overviewing the file before reaching out to an MCA Company with the balance amount she currently has (< rule of thumb over $100k)

[dpFund]

I have the capability to consolidate that many positions and provide cash out. That stated, If somebody has 7 positions with only $145k I can't help but wonder what kind of shape the company is in. We consolidate MCA debt for companies that want out from the daily payments. The challenge is, so many clients (and the brokers that facilitate them) create a self-imposed Ponzi scheme where they are scrambling every month, taking out yet another cash advance to pay off the one from last month. THAT is not my client. :-)

If your client is solid and has good monthly net income after all expenses, I'd be happy to take a look and see if we can fund.

Best,

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

[RichardGerard]

Just reading this...

A lot of responses for a client that has taken 7 positions! While I don't call our firm a direct 'funder'- we do deploy our own capital as a bridge to better credit facilities. Has to make sense though.

We likely wouldn't for this client based on the information disclosed, but the posters before me all make valid points. This is a SMALL CAP deal that sounds 'hairy'. In my opinion the only scenario where it makes sense to be buying all this debt is if the client is in all out growth mode- has new relationship contracts in hand- and NEEDS a transitional credit facility to get him past suffocating on his own debt.

There are numerous respected investors that are willing to deploy capital where it makes sense. They would all like to be senior secured unless there are mitigating circumstances where they can sit between equity and debt on a balance sheet. It has to make sense- and there has to be valid reasons why Lenders/Investors/Funds would/should invest.

Our firm has arranged consolidations for as many as 14 positions- with the largest credit facility being $4M. Feel free to touch base if you would like a relationship with a firm that will give you access to more than ABL Lenders/Factors, and Cash Advance Consolidation 'Funders'..

Richard 516 510 3855

www.businesscapitalconsultants.com

775 Park Avenue Suite 255
Huntington NY 11743

[Davincinc]

Funding circle <------ consolidate up to 500k.
If your numbers make sense and no negative weeks.
single digit rates possible.
Its all to help the client. Wont get rich consolidating but your client wont for get you!

PM me.

Da Vinci

[RichardGerard]

So for clarity sake Davincinc: if the client has 7 positions, what's the likelihood that they are profitable? Do you think FC is going to see a firm stacked to the wall and offer them single digit rates?

All the folks on this Blog understand what the Mid Prime Lenders do. Four positions ago was when the Broker could have steered the file in the direction you suggest- IF the client had the earnings, credit, and equity on the balance sheet to substantiate it.

While I believe you're trying to help, the solution for this file isn't that simple.