Value Capital Funding welcomed a new debt restructuring client to the family.
The business is a General Contracting firm and the owner started the business in 2015 after having worked for another firm for 22 years. He just couldn’t fight the bug to be his own boss and within 4 years of going out on his own, he built a business generating $2MM in annual revenue.
“George”, The GC, was humming along and doing very well prior to the outbreak of Covid-19. They did have ~ $159,000 in high-cost debt (high cost MCA’s and an expensive Line of Credit), but they were making their payments with ease and were current on all of their bills. Unfortunately, the pandemic changes all that. They were forced to close for a while, and had a few large contracts cancelled due to Covid-19. Add to that, some current customers were slow to pay. 2020 saw revenues drop to $1.6MM. So, like many business owners do in situations like this , they took on more Merchant Cash Advances (MCAs) to try to get through the difficult times.
“George” came to us through our ISO, Robin. He had come to her looking for some kind of debt refinance. What he got was way better! She saw that he was struggling to make his debt payments, so she contacted us to see what could be done through our Debt Restructuring Program. She knew the Program has a 90% acceptance rate (he would not have qualified for a new loan), no collateral requirements (because George’s collateral was already tied up), no upfront costs, and no minimum FICO requirements (George’s FICO was in the 500’s). George’s MCA & LOC debts was costing him $6,347 a week (MCA’s were paid daily), or over $27,000/month to service this debt and he was behind with some of his payments.
Within just 4 days of initial contact with Value Capital Funding, George’s company had a new repayment schedule paying only $2,821/week (paid weekly – not daily). Needless to say, George (and Robin) were excited to see his payments lowered by $3,526/week or 56%!
Robin is one of Value Capital Funding’s newer ISO partners having been with us for only a month. Robin wins on two fronts: her client is thrilled with what she was able to accomplish for him, and she turned trash into cash using our Debt Restructuring services. Since then, she’s identified 2 other clients who need her Debt Restructuring services.