How to Qualify? - Posted by Elizabeth

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.

How to Qualify? - Posted by Elizabeth

Posted by Elizabeth on April 18, 2000 at 14:20:24:

Would you have any suggestions on how I can proceed? I own a medical practice and have a physician that wants to buy it. We have agreed on price etc, and now she has to a) either qualify for the SBA loan that I have, or b) get a new line of credit to pay off the SBA. We are talking about $530,000. She is a young doctor, no credit history, tho she recently qualified to buy a house (no problems) and has little or no collateral(except for this house). How can we get her a line of credit or qualified to take over this practice? I want to free up my own collateral, the SBA put liens on everything including my dog!!! and I want to move into REI and Notes. Can you help at all? Many thanks.