Results 1 to 8 of 8
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11-27-2020, 08:19 AM #1
Reputation points: 4457
- Join Date
- Feb 2014
- Location
- Florida
- Posts
- 261
Easy lockbox spit deal, if you don't mind a lot of negative days
This merchant has a $30k balance with Quikstone. Lockbox split at 14%. This has been renewed 5 times (technically, QS only does add-on's, no double factoring). He is about 30 days from being eligible for add on capital.
11 yr old restaurant in GA.
$80k/mo cc volume (annual average)
(Heading into slower volume time, avg is $55k for D,J,F)
Credit is 580
12 - 16 negative days every month. (Shouldn't matter since funder receives cc funds before the merchant does via lockbox). QS understands this well.
Needs $30k for some kitchen equipment and funds to maximize seating due to Covid.
All direct lenders, please reach out if you want this deal. He can't switch processing due to POS.Shannon Harris
Funding Specialist
888-705-8818 phone
239-790-2664 fax
Shannon@StellarBusinessFunding.com
www.stellarbusinessfunding.com
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11-27-2020, 01:07 PM #2
Reputation points: 81657
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,896
Quikstone has already purchased 100% of the merchants future receivables & has a "No Stacking Clause"
- with a very generous payback of 14% per day.
$80K per month in cc sales, but, you stated that his gross revenue will drop to $55K - ( 30% drop ),
which indicates a longer payback period on existing MCA
Poor Credit
Time to let this fish swim away.Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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11-27-2020, 11:48 PM #3
Reputation points: 4457
- Join Date
- Feb 2014
- Location
- Florida
- Posts
- 261
Thanks for pointing out the "no stacking" policy. For clarification, merchant is looking for a $60k offer, and net $30k.
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11-28-2020, 02:07 PM #4
Reputation points: 81657
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,896
The numbers don't add up. He wants 100% of his lowered revenue. pay off $30K and attempt to net $30K.
If someone were to fund the merchant, he would pay-off expensive $$ with higher expensive $$$'s.
His best bet is to do everything to maintain his current sales volume (even discounting meals at 15% is cheaper that MCA $$ @ 1.49 or 1.55)
Pay off the $30K @ 14% hold back @ a 60$K credit card volume is $8400.00 per month, in 3/4 months he is done.Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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11-30-2020, 10:49 AM #5
Reputation points: 4457
- Join Date
- Feb 2014
- Location
- Florida
- Posts
- 261
These are good suggestions Dave.. and the merchant is implementing discounts to bring in more biz.. I agree he should wait.. however, the merchant needs a substantial cash injection.. and then in 3 or 4 months, he will be entering his busier time and will manage to pull through. Let's all hope these businesses can obtain a helping hand (grant money) very soon.
Shannon Harris
Funding Specialist
888-705-8818 phone
239-790-2664 fax
Shannon@StellarBusinessFunding.com
www.stellarbusinessfunding.com
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11-30-2020, 11:09 AM #6
Reputation points: 81657
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,896
Let's us hope that Congress provides at least 1 more cash infusion - Way too many business owners are not going to survive,
How much debt do they expect a biz owner to add to his/her balance sheet.
Keep an eye on the SBA Web Site - rumor has it that EIDL is going to re-open - $$$ is available that was never applied for.
Politicians created this mess and none have a good answer - shutting down did not stop the Chinese Communist Virus - why in the world
would they think additional shut-downs will work - time to get off my soap-boxDave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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11-30-2020, 04:57 PM #7
Reputation points: 4457
- Join Date
- Feb 2014
- Location
- Florida
- Posts
- 261
Shannon Harris
Funding Specialist
888-705-8818 phone
239-790-2664 fax
Shannon@StellarBusinessFunding.com
www.stellarbusinessfunding.com
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11-30-2020, 07:53 PM #8
Reputation points: 203690
- Join Date
- Jan 2014
- Posts
- 1,365
he's negative half of the month because of that hold back...you get him another cc deal and his volume drops he will never be in the green.
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