5 questions with … TAB Bank Equipment Finance SVP Tyson Law
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Traditional Business Finance
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Master Lease Agreement wiping out MCA debt
Master Lease Agreement wiping out MCA debt
Client has a lot of yellow iron equipment. Estimated value of $396,000
Got approved for a Master Lease Agreement for $250,000
48 months
Lease factor rate: .035407
Monthly payment of $8,851.86
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Tom Forrest
07. Aug.
•
28.95% APR assuming a $1 buyout. Not great but definitely cheaper than MCA debt and stretches the payment out over a longer period. Hopefully merchant/borrower takes the fresh start and makes the most of it.
Merchant has $1MM SBA 7A and wants $500,000 working capital
Merchant has $1MM SBA 7A and wants $500,000 working capital
O/O restaurant with tenants - collateralize by his property
Merchant hates the SBA 7A Rate, that it adjusts every 3 months and that it collateralizes all business assets.
So I suggested we create a new LLC, pay off the SBA 7A - get it completely out of the business.....remove that debt from the balance sheet.
He wants to franchise his restaurant model - and a $1MM SBA doesn't help that By removing the SBA loan and replacing it with a lease to the new LLC, it makes his restaurant concept more attractive.
We created a new LLC. Submitted the file for a cash out real estate loan using their lease agreements (like DSCR)
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Not a great equipment lender. They basically do equipment lending as a secondary market for their primary focus which is AR lending/factoring. If you won't factor with them then they really aren't interested in financing equipment.