Quote Originally Posted by Sachip24 View Post
Have merchant does about 23mill a year. He currently has an agreement with his bank or loan from bank for 350k, he pays interest only every month then month 12 balloon payment for whole balance and then it renews again for the following year. Any lender offer some type of program like this where its I/O payments only with option to renew every 12-24 months?

What you are describing is a standard bank revolver. They create a limit with which they lend interest only. Typically they have a one month 'clean up'. If you are able to pay off your principal balance, they extend the revolver for another year- if you cannot- they 'term' out the principal and interest..

This is standard C and I bank practice- so virtually all banks do this. They will typically require that the borrower switch corporate and personal accounts to their institution as well.. Issue is that banks typically do NOT provide enough liquidity. $23M a year and only 350k!!!

At $2M per month (depending on the business and asset types) the client is just about ready for a $4M ABL facility where applicable