Deal with Payment Adjustments

**TB-Commercial** · 10-28-2016, 11:16 PM

Hey guys, I have a client who has had his payments reduced/adjusted to "help him out for a bit." Obviously, this action has resulted in declines pretty much everywhere. He has 3 current advances totaling $180k and has revenue of $200k monthly. Personal bankruptcy that just discharged in February. We were going for a consolidation initially, but he called today and said he can't wait and needs funds as soon as possible. Not sure what to do, and not sure if it's even possible. Should I just throw the deal away? Would appreciate any friendly advice. Thanks in advance.

**Zach** · 10-28-2016, 11:23 PM

Does he have any real estate?

**TB-Commercial** · 10-28-2016, 11:43 PM

Yes, but it's already collateralized (sp?)

**Zach** · 10-29-2016, 02:56 AM

We can take up to 4th lien position on the real estate, as long as there's enough equity.

**sigmundpannu** · 10-29-2016, 07:39 AM

The his next step is a business bankruptcy

**encore** · 10-29-2016, 08:16 AM

How long has he had the advances, and what is the industry?

**bdshaw** · 10-29-2016, 09:22 AM

TB, is your client a retailer? If not, there are a number of financial instruments that may work if someone were to drug deeply into their numbers.
Please tell us what type of business it is.
Thanks, Bob
rshaw@delanceyfunding.com
734.929.3800

**bdshaw** · 10-29-2016, 09:28 AM

Please pardon my spelling.

**TB-Commercial** · 10-29-2016, 02:33 PM

Thanks for the help guys. He's an equipment dealer.

**TB-Commercial** · 10-29-2016, 02:33 PM

Sorry, and the advances are a couple months old.

**bdshaw** · 10-29-2016, 02:44 PM

Are his customers consumers or businesses?

**TB-Commercial** · 10-29-2016, 03:57 PM

Businesses, Bob.

**bdshaw** · 10-29-2016, 11:52 PM

Can we talk on Monday?
Bob Shaw
734.929.3800
rshaw@delanceyfunding.com

**TB-Commercial** · 10-30-2016, 01:35 PM

Yep, I'll call you first thing in the morning. Thanks Bob!

**bdshaw** · 10-30-2016, 01:46 PM

You are quite welcome

**dpFund** · 10-31-2016, 09:13 AM

Unless Zach or Bob can help you, I would walk away. I consolidate a lot of clients. But if this client had a workout on advances that are only a couple months old, AND a personal bankruptcy, AND he is running out of money again, he clearly cannot manage his money, and would do a terrible job managing mine. I would stay far away from him since it will just burn up your time and be an extremely frustrating experience.

Sorry to the wet blanket.

Best,

Dan Page

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