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06-22-2022, 04:28 PM #1
- Join Date
- May 2015
- Location
- Staten Island, New York
- Posts
- 8
Buyout of Funding Cirlce
Off the wall question... Is there anyone out there that would consolidate a Funding circle position with a similar deal?
Merchant was funded $500k Dec 2019, Balance is $300k, Maturity date 12/24/2024.
I know Fundation used to be an option, any input is helpful.
Thank you!
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06-22-2022, 05:06 PM #2
- Join Date
- Jun 2015
- Posts
- 10
The only option I could think of here to compete with FC's rate and term would be to try getting your client into 7a SBA loan since 350k max loan amount would cover the 300K client has outstanding and
with a 10 year term and better rates . Just make sure client qualifies for the loan before wasting more time on the file.
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06-22-2022, 05:07 PM #3
- Join Date
- Feb 2017
- Posts
- 3,395
If there's AR, try to use the AR to consolidate into a factoring facility. But there has to be enough AR to make it worthwhile obviously.
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06-22-2022, 05:11 PM #4
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,924
Ditto - regarding the SBA Advice
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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06-22-2022, 05:24 PM #5
- Join Date
- Oct 2016
- Posts
- 4,318
SBA 7(a) goes up to $5M.
But good luck getting an SBA lender to consolidate this debt without taking additional working capital.
Micah is right: it’s gonna come down to A/R. Or even real estate.
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06-22-2022, 05:49 PM #6
Yes I can do it and not SBA but a term loan 5 years around 20%. No origination fee.
I stopped using Finding Circle few years back but then it was 13% plus 5% origination 5 year term.
Have you looked into a SBA Express up to $350,000? Problem is benefit.
I'd rather see a $500K term loan justify the use of funds....debt consolidation and W/C.
(Assuming they qualify)Last edited by Olderguy; 06-22-2022 at 05:52 PM.
Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
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06-22-2022, 07:29 PM #7
- Join Date
- May 2015
- Location
- Staten Island, New York
- Posts
- 8
I thought this maybe an option, just found out he has Fora as well. Balance 380k. I don't this 7(a) will work now
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06-22-2022, 07:33 PM #8
- Join Date
- May 2015
- Location
- Staten Island, New York
- Posts
- 8
Thank you everyone for your input here! I really appreciate the feedback here.
I was thinking SBA as well, but after diving deeper into the file we found he has a 380k balance with Fora as well. I think this merchant is a little overleveraged for what he is looking for.
All and all thank you everyone for the information!!
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