Consolidation

[Triton Financing]

I have a client who was suckered into stacking from a broker when he started his business 3 years ago.

He has been nickle and dimed to death by the bottom feeders (Yellowstone, etc.). On top of that, his broker hooked him up with a factoring company that is holding over 50% of his invoices. He generates approx. $800k a month in invoices but is only being given $250-350 and the rest is being put into a lockbox. Because of all this he is always in need for capital and has to keep going back to these lenders for additional capital. It has also led him to NUMEROUS overdrafts. In Sept. he had over 50. He is doing better this month (I have MTD) and is working his balances down. He does not want to go back to them and is looking for a lender who will give him $250k.

I have had this file for a while and having a hard time placing it because of his history of stacking. He is willing to sign a declaration with any consequences the lender deems fit to prevent him from stacking behind whomever gets him out of this mess.

Here are the details:

Global Merchant: $3k
New Era: $18k
WG: $12k
Yellowstone: $9k

Average monthly gross: $320k
CC Volume: $200k monthly

[Zach]

Hey there, this one might be a solid fit for WBL. Would you care to talk about it?

[bdshaw051340]

50% factoring

I have a client who was suckered into stacking from a broker when he started his business 3 years ago.

He has been nickle and dimed to death by the bottom feeders (Yellowstone, etc.). On top of that, his broker hooked him up with a factoring company that is holding over 50% of his invoices. He generates approx. $800k a month in invoices but is only being given $250-350 and the rest is being put into a lockbox. Because of all this he is always in need for capital and has to keep going back to these lenders for additional capital. It has also led him to NUMEROUS overdrafts. In Sept. he had over 50. He is doing better this month (I have MTD) and is working his balances down. He does not want to go back to them and is looking for a lender who will give him $250k.

I have had this file for a while and having a hard time placing it because of his history of stacking. He is willing to sign a declaration with any consequences the lender deems fit to prevent him from stacking behind whomever gets him out of this mess.

Here are the details:

Global Merchant: $3k
New Era: $18k
WG: $12k
Yellowstone: $9k

Average monthly gross: $320k
CC Volume: $200k monthly

Hi Titan, did you ever learn why only 50% of their invoices are deemed eligible to be factored. A decent factoring program would either payoff or pay down the existing advances and give then additional working capital.
Commission on this deal would be about $36,000 annually for generally 33 months.
Bob Shaw
734.929.3800
rshaw@advanceredit.com
rshaw@millenniumfundingusa.com

[Triton Financing]

Hey there, this one might be a solid fit for WBL. Would you care to talk about it?

Hey Zach,

They do not have any net equity in their home. You guys were the first place I went to.

[Triton Financing]

Hi Titan, did you ever learn why only 50% of their invoices are deemed eligible to be factored. A decent factoring program would either payoff or pay down the existing advances and give then additional working capital.
Commission on this deal would be about $36,000 annually for generally 33 months.
Bob Shaw
734.929.3800
rshaw@advanceredit.com
rshaw@millenniumfundingusa.com

From my understanding, it's not that they are ineligible, it's the factoring company who is giving them a bad deal.

[bdshaw051340]

Consolidation

Ive been in the factoring business over 40 years and have never run into that.
I can see where the credit of their customers is shaky, a bonded construction job or any number of things. I think you have a better chance of getting them funding if you have someone with factoring experience talk to them with you on the phone.
Bob