[abfunders]

I have a client who wants to work with a "debt consolidation" firm. They renegotiate his terms for him, and pay him, and they pay out to the direct lenders.

He has 8 positions out. Grosses $900k-1mm monthly, nets about 300k due to multiple loans and MCAs and a bank loan. Has $4.1mm out in receivables.

He's feeling the pinch of too much stacking, but he doesn't want to close the door for the future funding through MCAs. No negative days, but it's getting overwhelming.

If he starts working with one of these companies, does he get blacklisted from future lenders? Or should I direct him to a company like Dan Page to just really consolidate himself and get an MCA product?

[Chambo]

Blacklisted

[Funder Mark]

100% agree with Chambo, go with Dan Page, try to get a full consolidation, if he has to negotiate payments with the funders thats a bad thing, but still better than going with a debt 'consolidation' company.

[Anthony@torro]

Your best bet is to have the merchant call whomever he has an advance with and slightly restructure the payment. Lenders are much more willing to work with the merchant directly than a scumbag debt consolidation company. In the end we just want to get paid back even if it takes a little bit longer than originally agreed.

Edit: if Dan Page is able to consolidate the merchant than that is a far better option.

[EminentTransact]

Who or What is Dan Page?

[TedFundy]

He has 8 positions out.

He's feeling the pinch of too much stacking

LOLOLOL he's starting to feel the pinch after that 8th position... That 8th one gets you everytime.

[NickHubbard]

Who or What is Dan Page?

Dan Page



Funding Strategy Partners

Direct: (303) 938-8280

dan@fundingstrategypartners.com

www.fundingstrategypartners.com

[Chambo]

I have a client who wants to work with a "debt consolidation" firm. They renegotiate his terms for him, and pay him, and they pay out to the direct lenders.

He has 8 positions out. Grosses $900k-1mm monthly, nets about 300k due to multiple loans from ABLE and MCAs and a bank loan. Has $4.1mm out in receivables.

He's feeling the pinch of too much stacking, but he doesn't want to close the door for the future funding through MCAs. No negative days, but it's getting overwhelming.

If he starts working with one of these companies, does he get blacklisted from future lenders? Or should I direct him to a company like Dan Page to just really consolidate himself and get an MCA product?

Debt Consolidation companies get the merchant to stop paying. then after a couple months, they would call up the MCA, and offer a settlement of .05 (yes 5 cents) on the dollar. See, they are paid based on the saving to the merchant,s o the lower they get the settlement for, the more they make.

In the end, the merchant may end up saving 25-35% on this debt. The Consolidation company makes an additional 25-30% of the outstanding debt balance.

[Kevin Henry-Seacoast]

How much is owed in cash advances and how big is the bank line? What industry?

Yes I am a lender.

Kevin

[WestCoastFunding]

First choice: product like Kevin Henry
Second choice: Dan Page
Third choice: ask for reduced payments
Ruin any chance of being funded ever again choice: work with debt restructuring company.

[Andy]

Debt Consolidation companies get the merchant to stop paying. then after a couple months, they would call up the MCA, and offer a settlement of .05 (yes 5 cents) on the dollar. See, they are paid based on the saving to the merchant,s o the lower they get the settlement for, the more they make.

In the end, the merchant may end up saving 25-35% on this debt. The Consolidation company makes an additional 25-30% of the outstanding debt balance.

The part of this that is missing- merchant stops payment, goes in default. The funders refuse to negotiate with these debt consolidation firms offering a joke of a settlement. The funders file lawsuits/COJ and seize receivables and assets, and company goes out of business.

And all could've been avoided if the merchant simply called the funders himself, and said hey I'm struggling with the payments can you please lower them a little. After all, if a merchant bounces payments its not good for the merchant or the funder. If the payments strangle the businesses cash flow and they go out of business, the funder loses too.

[Kevin Henry-Seacoast]

The part that is missing is the answers.... how much is owed to the bank and cash advances and what industry?

[Michael I]

Best is to get him financing not from this industry .like west coast said ,Kevin is a great option .if not you want to reach out o someone like Bob Shaw or Richard Gerard (search for them on this site) to help you find the right banks

[abfunders]

Wow, this is a great set of responses.

He's in construction, has 850k out in advances, has about 850k to the bank in an installment loan for the last 4 years he's been paying off.

Turns out via this post (maybe 5 minutes after posting!), I heard that one of the debt consolidation firms started calling on his behalf. I called the client and found out that it was UNAUTHORIZED. He never signed on the dotted line, and one of his old lenders recognized the case, and called me. Lenders talk to each other. Looks like he's done with MCA. Which is probably a good thing for him.

He's got a long road ahead of him, but we're going to start finding creative options for him, and get him onto a normal healthy debt. MCA got him to where he is now, so let's see if we can help him.

If you are his direct lender, please spread the word: HE IS MAKING EVERY EFFORT TO PAY YOU ON TIME WITHOUT ANY CHANGE! He is a good guy, and he is NOT removing money from his account and is NOT going to default (as best as any human with 8 positions can promise). He's not bankrupt, he might slight breathing room. Reach out to him and offer to help. You WILL get paid. Spread the word.

[Kevin Henry-Seacoast]

Construction...sorry, but we can't do anything.

[Zach]

WBL will consider working with companies who have restructured their existing debt. Often times we can take their short-term debt and put them into a multiple-year product, thereby saving their business from the inevitable NSF death. We actually have a huge surprise in April that will make these types of deals extremely lucrative for brokers... Give me a call or email tomorrow to discuss.

[AAlonzo]

Hi all!

Dan Page is an option -- but you can't just "RING" Dan! You better have your ducks in order

[Kevin Henry-Seacoast]

With 4mil in AR outstanding you might be better served finding a factor that likes construction. Do a one year deal and then flip bank to a bank. Based on what you have described he has 4Mil in AR and owes 1.6. There should be plenty of availably to clean up the debt and provide extra liquidity. We do not factor pure construction companies. There are a few out their that do.

[RichardGerard]

Agree with Kevin.. There are several options for the client long as the assets out weigh the liabilities. Challenges with Construction is Payer risk, milestones, and retainage. Depending on the Aging and eligible receivables there is a strong likelihood we can get something done for the client. Additionally: there are firms that restructure debt- not try to cram it down.

Feel free to touch base should you wish for assistance/perspective.

[Kevin Henry-Seacoast]

Yes Richard! Assume 1mil is ineligible due to milestone, bonding or over 90 and you are left with 3mil. At even a 70% advance rate you are cleaning up the debt and providing liquidity. Keep in mind that factoring is a revolving facility.....weekly you will be financing invoices to access liquidity.

[bdshaw]

Factoring construction receivables is difficult for reason previously described in this thread. If you give me your phone number and a good time to call I'll be glad to introduce you to the best firm I've found over the last 40 years. You will get the full commission.
Bob Shaw
734-929-3800
rshaw@advancecredit.com

[dpFund]

Hey folks -

Thanks to everyone that has been throwing my name out there. Yes, we do a lot of consolidations, also in the construction industry (funded a construction company for $550k this week, half of which was paying off 3 MCAs).

This sounds like a tough one, admittedly. We don't just look at the numbers but also the story, as in WHY the client took out 8 advances and what is going to change in the future if we were to consolidate his advances, so that he does not need to do this to himself again. Usually in construction it is due to slow pays. Sometimes there is a path out and sometimes there is not.

We need to see a minimum of $13k of monthly net income for every $100k in funding. So for this client, we need to see at least $100k+ of net monthly income, or about 10% - 12% net margin, which is typically high net margin for construction. The client also has an additional $850k bank loan, so the balance sheet comes into question as we are already up to $1.7MM of debt without knowing more.

All in all, sounds like a challenging deal but happy to take a look or answer any questions if it is helpful.

Quick recap of what we can do:

$100k - $2MM funding amount
12-30 month term
Early pre-pay after six months, with no fees, penalties or interest (we do not front load profits so if a client pays off at six months their cost of capital is half the cost of twelve months, a third the cost of eighteen months)
We fund in all fifty states, most industries

Best,

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

[Cambridge]

Who or What is Dan Page?

The entertainment industry has Robert DeNiro.

The fashion/retail industry has Amancio Ortega.

The media industry has Rupert Murdoch.

The alternative finance industry has Dan Page.




Kiss the ring.

[dpFund]

the entertainment industry has robert deniro.

The fashion/retail industry has amancio ortega.

The media industry has rupert murdoch.

The alternative finance industry has dan page.




Kiss the ring.

lmao!

[RichardGerard]

The entertainment industry has Robert DeNiro.

The fashion/retail industry has Amancio Ortega.

The media industry has Rupert Murdoch.

The alternative finance industry has Dan Page.




Kiss the ring.

hahahahahahaha