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  • mfindeisen6

Coastal Payment Systems Small Business Lending

Stating the obvious, we are in historic times. Quite challenging. The country (the world for that matter) is still a relative mess. While things are coming back and I am quite bullish about the future, there has undoubtedly been a lot of economic carnage. 

Our partnerships enable us, in addition to offering unsecured business loans, to expand our secured lending. This includes those that lend specifically against accounts receivable, real estate, purchase orders, inventory, contract rights, etc... We are also placing PPE and cannabis deals (not easy in this environment). 

While we all wait to see what the next “federal stimulus bill” will (and will not) include, there is little doubt that many business owners continue to struggle. Some need more money to rebuild their businesses; others need a way to cut expenses; and others need to find new sources of capital to help them pay their mortgages and put food on their tables. Although we are making progress, there is little doubt that the small business community is still in a somewhat precarious and fragile state. Many are dealing with cash flow issues. The economic and emotional pain/damage from this pandemic has run far and deep and adds more financial challenges to many small businesses. Towards this end, I want to highlight examples of different programs we have been using to help businesses address their needs/issues.  Product A: True Consolidation Loan  This product is designed for those businesses with “short term” loans that eat up too much of their daily/weekly cash flow. Unlike most, this lender will PAY OFF existing lenders and there is no minimum amount of money the business needs to “net.” Importantly, the ability to get future financing will NOT BE HURT. The lender(s) will refinance the current balances into a single ten (10) year term loan with one monthly payment. Many of our customers are reducing their current payments by almost 80% per month as evidenced by the chart below.  Loan Balance       Estimated Monthly Payments        New Monthly Payments    Savings  $10,000                $1,666                          $332              80%  $25,000              $4,166                             $830                  80%  $50,000               $8,333                           $1,660                 80%  $75,000             $12,499                            $2,491                   80%  $100,000            $16,666                            $3,321               80% 

Product B: Five Year/Low Cost Term Loan/AR Facility 

  • Industry: Food distribution

  • Monthly Revenues: $700,000

  • Amount Offered: $1.4 million

  • 14% per annum

Below are examples of a few offers obtained for clients recently.  Loan A  Industry: PPE goods  Monthly revenues: $10 million  Product: Medical grade gloves  Amount offered: Up to $20 million  Term: Two-year revolving line of credit  Collateral: Inventory/AR  Details: Finance company will provide both purchase order and accounts receivable financing. A great one stop shop for the customer. Loan B  Industry: Food distribution  Monthly revenues: $500,000  Amount offered: $5 million  Product: Term loan type product (payments based on % of revenues)  Term: 2 years  Price: 2.5% per month  Collateral: Blanket first position lien  Details: Money will allow the company to defer raising more equity and defer dilution.  Loan C  Industry: Trucking  Monthly revenues: $600,000  Product: Term loan  Term: 5-year amortization with a balloon payment due at month 36  Collateral: Blanket first position lien  Details: Company is using proceeds to refinance one-year convertible notes from hedge funds.  Our lenders are expansive and sensible deals will be funded. If any of your clients or associates need capital, our lenders are funding. 

Tell us about your capital funding needs. 

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