Tweet
Three MCA'S
On-deck taken march 7 weekly payments $5,169. original amount 200k 12 months current balance $209,109.96
300k 4/26 payback $449,700 --- $9999 daily Current Balance $309,714
300k 4/26 payback $449,700 --- $9999 daily Current Balance $309,714
these two need buy out, if we can buy out ondeck that works too.
Current total balance is $828,537.96
looking to net 100-200k
Monthly revenue-1.2 million
no tax liens
all financials available.
Excellent payment history
essentially needs a bridge for 2 months to preserve cash flow
No prepayment penalty
The context:
The two recent months impacted by the software problem are not consistent with their regular account activity and balances.
Here are some selling points for the lender(s):
Call me! 212-931-6857
bhollander@premiummerchantfunding.com
On-deck taken march 7 weekly payments $5,169. original amount 200k 12 months current balance $209,109.96
300k 4/26 payback $449,700 --- $9999 daily Current Balance $309,714
300k 4/26 payback $449,700 --- $9999 daily Current Balance $309,714
these two need buy out, if we can buy out ondeck that works too.
Current total balance is $828,537.96
looking to net 100-200k
Monthly revenue-1.2 million
no tax liens
all financials available.
Excellent payment history
essentially needs a bridge for 2 months to preserve cash flow
No prepayment penalty
The context:
- JAN rolled out new billing claims software
- Two months of software problems jammed up the billing
- Rolled back to previous software and began clearing the backlog currently at $2.4MM
- Owner did two MCA's without experience in the product
- External accountant is working to fix this with overiding goal of lowering the 20k daily payment
- The urgency to improve cashflows is so that they do not have to cut back the health services to the special needs children they serve
The two recent months impacted by the software problem are not consistent with their regular account activity and balances.
Here are some selling points for the lender(s):
- Consolidating these two MCA's and extending the term to lower the daily repay amount is Right Way risk (risk addition that increases the business' ability to make payments)
- Lender(s) consolidates the two open positions into a 9,12, or 18 month term MCA
- Business contracts that the lender(s) has the right to terminate the deal in say 2 months - business repays whole outstanding value of MCA in full
- Business has 2MM in escrow that is to be released in the next 30-60 days in addition to the 2.4MM in aged receivables being cleared up
- This gives the lender(s) the economics of a longer term deal with the risks of a 2 month deal and the ability re-deploy the capital originally provided plus new capital earned in this MCA in only 60 days
Call me! 212-931-6857
bhollander@premiummerchantfunding.com
