Merchant wants Loan Against Liquor License

[ALA]

Who will take a Mass. Liquor license as collateral for a loan?
Thank You!
adele@fundswired.com

[GulfCoastFunding]

I just emailed you from my account matt@ironwoodfinance.com

[Jstarr]

what state? every state has particular laws pertaining to liquor license and legalities, and there are 3 types of license, beer & wine, SRX, and 4 cop.

1) Beer & wine is about $500.

2 )SRX is about $1200, this is a quota license, you need to sell 51% food to keep this.

3) 4cop is a full license and depending on the state they could go for as much as $120,000. and you are not required to sell food for this license.
( if it is a 4cop, most licenses will have a lien or note on them, so you need to make sure you are in 1st position)/


The most common license is the SRX and they really don't have much face value

The other problem is, is the restaurant doesn't pay the vendor, they are put on a no sale list and a lien is placed on the license.

liability - if someone leaves the bar drunk and kills someone, they can come after the restaurant, so the contract needs to be drafted properly so the lender isn't liable. - the best scenario is for the restaurant to sign the license over to the lender and they lease it back.