[It's A Wonderful ISO]

We have closed a few and I am about to propose on a deal next week.
Situation: $5mil revenue Company with an advance from 3 different providers and a small LOC from a bank. The Company has 750Mil in AR outstanding.
Solution: We are proposing a factoring deal whereby we will advance 92% on their AR in a revolving $1mil facility. First funding pays off all the existing debt and gives the Company some decent liquidity. Since the facility is revolving we will be financing invoices on a weekly basis. We were not as cheap as the bank line, but they were not willing to increase because of customer concentrations and the stacks. We are certainly cheaper than the advances. All in we are around 13%. The bank was at 4+L. The advances ranged from 18% to 36%. The extra liquidity and financing savings are going to help them tremendously.

Kevin

Really appreciate the well thought out and candid feedback from everyone, I think anyone who views this thread will get a better understanding just by reading the replies, excellent stuff guys thank you.. Kevin that sounds like a great deal and clearly makes sense on all four corners.. will certainly PM you to discuss a few things in greater detail