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11-03-2020, 10:21 AM #1
- Join Date
- Oct 2020
- Location
- Kansas City, MO
- Posts
- 6
$12M loan needed for a Payment Processing Company
Good morning all. I am currently looking for a lender that can help with this deal.
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The Company is seeking a $12,000,000 loan to repurchase about 75-80% of their sales agent’s
residuals.
Company Industry: Credit Card Processing, POS sales, payment services to SME
Market
Requested Loan Terms:
Loan Amount: $12,000,000
Term: 6 year (P+I in years 2-6)
Interest Only: 1st year
Rate: 14.75% / 14.95% on 360 day basis
Use of Proceeds: Acquire internal Sales Agent Residuals (COGS) only
Prohibited Use of Proceeds:
Any operating expenses of Borrower, including but not limited to salaries, bonuses, dividends, disbursement for expenses, etc.
Prepayment Penalty: 0%
Security:
UCC-1 on all business units, control of disbursements from bank accounts, in the event of default Irrevocable assignment of monthly cash disbursements from processor (3 party
agreement: lender, processor and borrower)
Funds Disbursement:
As borrower provides Repurchase of Residual agreement, along with corresponding documentation, executed by Sales Agent and Borrower. Not less than $100,000 per draw
Monthly Monitoring Fee:
$2,500 monthly, payable to Lender
Audited Financials: Yes
Financial Summary Pro Forma (YTD 2020 through June 2020)
Prior to Loan Post Loan
Gross Revenue $14,095,468 $14,095,468
Less
Processing Costs $9,638,244 $9,638,244
Independent Sales Agents
Residuals * $2,450,909 $ 350,909
Equals Gross Profit $2,006,315 $4,106,315
Less SG&A $1,127,872 $1,127,872
Net Income from Operations $ 878,443 $2,978,443
*Based upon the 6 month ytd figures; purchase approximately $2,100,000 ($350,000 monthly
or $4,200,000 annually) of Sales Agent Residuals using the Loan proceeds.
The borrower intends to repurchase $350,000 to $400,000 of monthly sales residual at
$12,000,000 as the monthly P+I pmt will be $285,480 plus any monthly loan fees.
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Let me know if you can help me find a lender for this deal.
Thank you,Alex Trigg
Director of Commercial Lending
Strategic Capital
816.287.3808
atrigg@capitalwithstrategy.com
www.capitalwithstrategy.com
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