Posted by John Behle on April 19, 2000 at 12:17:49:
Given the circumstances you’ve described here and in your email, my approach would be to turn to the receivables that you mentioned. You could raise a great deal of the money you/she needs to pay off the SBA.
It may then be possible to get the SBA to agree to let her assume the remainder of the loan (and release your personal collateral) or she may be able to come up with some kind of financing for the balance.
The SBA may have some kind of automatic lien against those accounts, so you will need to check with that just in case. If not, they are an excellent source of liquid cash. In the area of medical receivables there are a lot of “factors” out there that would be thrilled to buy them.
If the factoring begins to look “too expensive” you could also get someone to work the accounts offering the people a discount and/or better terms if THEY put up collateral like their house. Some would go for the discount and some would add collateral for better terms. Adding the collateral to the A/R makes it a much more valuable and easily saleable note.
You might also be able to find someone to loan against the accounts. You can even get more exotic and trade them for some real estate or other property that you could finance more easily.