[eljets11]

I have a wholesaler in Cali that is depositing over $500,000 per month. Has open balance with New Logic and Knight. Looking to consolidate at least one balance or both and cash out for new inventory. Merchant would prefer at least a 12 month term.

Direct Funders Only Please
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[bdshaw]

I have a wholesaler in Cali that is depositing over $500,000 per month. Has open balance with New Logic and Knight. Looking to consolidate at least one balance or both and cash out for new inventory. Merchant would prefer at least a 12 month term.

Direct Funders Only Please
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Hi- is there any underlying debt ahead of the advances? If not, we should be able to provide a LOC for your client.
Bob Shaw
rshaw@delanceyfunding.com
734-929-3800

[elijah.g]

I have a wholesaler in Cali that is depositing over $500,000 per month. Has open balance with New Logic and Knight. Looking to consolidate at least one balance or both and cash out for new inventory. Merchant would prefer at least a 12 month term.

Direct Funders Only Please
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It's not solely about the deposits. The merchants credit, individual and totality of the balances and payment history is key. People love buying CanCapital out though. Let's talk.

Eli
7189265331

[CreditGuy]

Why are you setting your client up to lose by putting them in 12 month deal for an inventory investment? If they are turning over $6MM a year and have 100% markup (for the sake of easy math), then they are turning $250M in inventory a month. Let's assume they have a $100k balance with the two lenders and the new lender will take them both out and give 10% of gross. That's a $600k advance and $500k in new money. $500k is 2 months of inventory turn. Why would you structure your deal so that your client is still paying off inventory 10 months after they sold it? Even being more generous and assuming it takes 6 months to turn the inventory, the math still sucks. That is why they are probably stacked already, and why they will be back in this spot again looking for another refinance or stack. Regardless of the assumptions in my math, financing inventory over 12 months is bananas, except in some edge cases. Credit 101 is match off the term of your loan to the use of funds. This deal fails that test.

You as the broker need to stand up to the merchant and tell them what this dynamic will do to their business and why it is problematic. Good luck.

[Zach]

WBL can potentially finance this transaction for up to $1MM with a much longer term than the requested 12 months. With the borrower's current revenue stream, it's likely that he owns multiple pieces of real estate.

What's the best contact info for you?

[dpFund]

eljets11- I am a direct funder. If the client is profitable and his numbers stack up, I can consolidate all his MCAs and offer a 12, 18 or 30 month term.

Monthly payments, $100k minimum funding, $2MM max funding amount. No collateral required. We base it all of the strength of their financials.

Please feel free to reach out and discuss.

Best,

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

P.S. I am travelling through Monday so if you need immediate assistance please also reach out to my assistant Anne Woodland at dpfundinginfo@gmail.com

[RichardGerard]

In my experience the challenge with Wholesalers is their margins. If their Gross Profit Margin is less than 20% (which is often the case for wholesalers- sometimes as little as 10%!), revenue based Underwriting can 'over fund' these clients.

Eljets11: there are many qualified folks on this thread that can assist you. I suggest reviewing the Financials and reaching out to those that you have a comfort level with.