[dpFund]

Hey everyone,

As some of you know, we have been dabbling with a 30 month term (from our normal max of 18 month term), recently funding several clients with 30 months.

Just thought I would reach out and let you know that it is now official...we have extended our maximum term to 30 months.

There are a few restrictions

1.) $250k minimum funding (larger is desired)
2.) Minimum EBITA is $500k ($40k monthly)

Essentially, we have taken 18 month pricing and extended it out an additional year. So the cost of capital is the same as it was at 18 months, but they have an extra year to repay it, so the monthly payments go down and so does the annualized cost of capital.

We fund up to $2MM so this is a great fit for your larger clients.

Feel free to reach out if you have any clients that you think might be a fit.

Thanks,

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

[RichardGerard]

Thanks Dan.. Congratulations and good luck! Also thanks for pointing out restrictions (Assuming you meant EBITDA-typo). Have few questions I'm sure the folks here would like clarity on....

As relates to the cost of Capital:

Is it a factor rate or Principal and Interest?

Are there any State restrictions?

Is it necessary that the client be profitable prior to submission, or will you be taking the new credit facility into account for Debt Service Coverage Ratio?

Does your Firm need to be Senior Secured? If not, will a subordination agreement with Senior lender be required?

What is the estimated turn around time from full package submission to close?

Are there Industries you wish to avoid, and/or collateral requirements?

Thanks in advance for your explanations...

RG

[dpFund]

Richard -

Thanks for your questions. Answers below, to the best of my ability.

As an aside, the 30 month funding can also be used for MCA consolidations.

In regard to rate, it is a bit complicated but the simple answer is the annual factor rate is about a 1.17. So very attractive pricing for clients who are accustomed to paying a lot more.

No State restrictions whatsoever.

Yes, we want the client to be profitable...but this requires a little more explanation as well. If they are losing money due to excessive MCA payments and they would be sufficiently profitable with our facility in place, it is certainly a possibility.

In regard to your question about whether our firm needs to be senior secured...the answer is yes and no. As a rule, we do not stack. So if the client is consolidating MCA fundings, we need to pay all of them off or none of them. If they have equipment loans in place that is fine. If they have a Factor in place that is fine (we just set up an Intercreditor agreement). I have funded behind SBA loans as long as it does not violate the SBA agreement and the numbers work.

In your regard to estimated turn around time once we have full package: 2 weeks, on average. Sometimes the larger deals can take a little longer (we go up to $2MM)

As far as industries to avoid: Individual restaurants, Marijuana, sole proprietorship where there is only one guy and if some tragedy befalls him, our money is in peril.

We just funded a deal last week for $950k with this structure and one a couple weeks ago for $1.1MM. We prefer the larger deals for this program but will go down to $250k.

Hope this helps!

Dan

[BSCI 504]

Hello Dan,
whats the maximum amount ...I have a client who is collecting rents from an industrial park that needs 3 to 5MM

[RichardGerard]

BSCI 504, I believe Dan mentioned his Max amount was 2M.. Touch base if you would like assistance with your client. There is a Fund I work with that has no max cap amount. They will need to be Senior secured and, and they will need to feel comfortable with the collateral.

Richard 516 510 3855

Business Capital Consultants
775 Park Avenue Suite 255
Huntington, NY 11743

www.businesscapitalconsultants.com

[dpFund]

Hello Dan,
whats the maximum amount ...I have a client who is collecting rents from an industrial park that needs 3 to 5MM

Hi - Max funding at any one time is $2MM. But with multiple fundings can possibly get your client where he needs to be.