[Matrix1]

I keep seeing all these threads that are based on consolidation but then I keep seeing comments or people basically say it's just a dream. So let's be honest is there really a company out there that will consolidate 234567 positions is there's somebody out there that will consolidate them pay everything off and make sure they net at least 50% or is it just a consolidation The consolidation and they'll only let a couple thousand dollars I'm very curious because I have way too many clients that need consolidation and I would love to be able to set them up with that. Also yes I am a newbie and no I do not have a regular account I have a Gmail account I'm just asking honest questions and I would like to have an honest answer if you don't mind

[bdshaw]

We've had success in converting MCA debt to a line of credit for those companies that qualify. Iron Horse Credit is a factor/p.o. and hybrid provider.
of your clients are selling to credit worthy commercial customers and their under 60 days outstanding accounts receivable equal 125% of the total advances, we have a reasonable chance of success.
Bob Shaw
rshaw@ironhorsecredit.com
734-929-3800

[RichardGerard]

Matrix1,

As a self proclaimed 'newbie' bear in mind there are several factors when considering how to help a stacked client. While there is a group on this Blog that consolidates MCA's- with an even larger MCA, often times that just means an overleveraged client is buying more debt. If you're interested in helping clients- of course while earning money- it will be important to understand how the clients balance sheet and personal assets will be the solution in consolidating a client. We have successfully assisted placing a client that had 14 positions. That's not hyperbole.

Folks here like Kevin and Bob will be a great resource to you, and feel free to email me as well..

rg@businesscapitalconsultants.com

[Hedley Lamarr]

Thanks for the kind words Richard! Matrix1-Richard is a valuable resource!

Here's an example of getting something done... We are about to propose a $3.5mil factoring facility for a 12Mil service business. All of their customers are large corporate clients and government agencies. They are gowning very rapidly and their $1mil LOC from a super regional bank was not keeping up with the growth. The Company took two advances from two different cash advance companies late last year. The total advances owed are around 700K ontop of the LOC of $1mil. The Company now realizes that the advances were very expensive and static term facilties...not revolving. They will factor with us for a year and then we will flip them internally to an ABL facility. The y currently have $2.7Mil in AR outstanding. At closing we are advancing 90% on the AR which will pay off all the existing debt and provide in excess of $600K of liquidity at closing. It is a revolving facility so post closing they will be factoring in excess of 300K of invoices weekly. We are not as cheap as their current LOC, but far cheaper then the cash advances. On a blended rate we are saving them about 12% on an annualized basis and providing a revolving facility to keep pace with the growth. They will also likely move all their operating accounts to our Bank.

FYI-The broker on this deal is a cash advance broker that we closed a deal with a few months back. Prior to that deal he had never done anything but cash advances. He is enjoying the month stream of commissions from the last deal and will enjoy the stream from this one once we close it.....

Kevin Henry
Kevin.Henry@seacoastBF.com

[Matrix1]

Thankyou I appreciate that, Kevin

[abfunders]

Matrix1, will you allow me to make an introduction for you? If you have a client with good credit (or a cosigner with good credit!), a lot of these positions can be bought out with a bank line of credit that have normal rates.

Of course, most clients with MCAs don't have great credit. In my opinion, it's fulfilling helping a client get the best rate that they are capable of getting, rather than trick them into something else.