Commercial Loans Blog

Consolidate Business Debt

May 10th, 2017 4:26 PM by Karen Schimpf

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Location: Georgia
Purpose: Consolidate business debt into one low SBA payment with a 10 year amortization
Type:  Borrower is a business that does excavating and heavy dirt moving for construction projects.  He was in business for years but often had to lease the equipment and machinery he needed and his monthly payments were MONSTER, over $110,000 a month.  At the end of the lease terms, he would own the equipment free and clear but getting there was a huge burden. Combining all of the debt and paying off the equipment would yield him a savings of OVER $55,000 a month!  
Give me a CALL TODAY to get your deals closed  at 512-650-8630    
Let me put that in perspective, if you save $55,000 a month and let's say your business runs 10% profit margins, it is the equivalent of GAINING an extra $550,000 a month in revenue!  WOW! ($55,000 a month in revenue at 10% profit would yield $550,000 in bottom line net).  By saving that much money off the bottom line, it was the equivalent of DOUBLING his sales!  Now like all of the loans that come to us,  MANY BANKS DENIED THE LOAN DESPITE THE HUGE SAVINGS.   The cash flow based on industry standard debt coverage ratios was still light.  In addition, there was almost no property involved on the deal, just equipment and machinery.  And his credit scores were low, too low for most banks liking(they were low because of all the debt, not because of bad credit history-still many banks passed on the deal).  BUT we found a lender that loved the story, saw that he was paying on time at $110,000 a month in payments, of course he could make the payments at $53,000 a month and they took the project on.  There were a lot of twists and turns and it took an extra month to get closed but we closed last Friday and he now is in GREAT position to succeed.  He is coming up on his strongest time of the year just as his expenses are being slashed in half!  A great combination.
Almost 100% of our closed loans were denied somewhere else BEFORE coming to us.  It is sort of what we do!  
We will quickly pre-view any loan and if doable, kick out terms at no cost to anyone.  Once you move forward with us, we sink our teeth into the deal and have the tenacity to get that deal done even in today's highly regulatory environment that seems to still be hindering lenders even with all the money available in commercial.  It is really simple, if you want to close the loan, give me a call at 512-650-8630 and let me make it happen for you.  Just one call can get it done!  Call Me today-512-650-8630 or e-mail me your scenario at KarenSchimpf at!  Talk to you soon-
Posted in:General
Posted by Karen Schimpf on May 10th, 2017 4:26 PM


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