Borrower With an Atypical Balance Sheet Gains Access to Funds for Purchase of Franchise

CALIFORNIA, July 1, 2011 -- MMG Capital, a collateral lender out of Thousand Oaks, Calif., closed a $300,000 business line-of-credit. The borrower, a franchisee in Hermosa Beach, California, had begun the process of opening a new store in the South Bay when she found herself short of funds. The borrower lacked any kind of traditional collateral and banks stringent guidelines didn't allow for any type of traditional financing. MMG Capital made the borrower a loan that provided all of the funds necessary for tenant improvements, the hiring of personnel, and general business expenses. The loan was secured by assets held in the client's IRA and was structured to be non-recourse to the borrower in order to adhere to IRS guidelines. 

"This was definitely a special case," said Chris Gleason, managing director of MMG Capital. "It took some creativity, but the bottom line was that the borrower had the assets to secure funding - it was just a matter of finding the right structure to make it work. At the end of the day, we're a collateral lender and so long as we're satisfied with our security we can be very flexible."  

 
The new franchise store will be Dickey's BBQ and is scheduled to open Fall of 2011 in Redondo Beach. 

MMG Capital specializes in creating opportunities for high-net worth individuals or entities that are short on liquidity to obtain financing for valuable projects or ventures. As a collateral-based lender, MMG Capital can provide financing to high-net worth borrowers that otherwise might not have an obtainable financing source.  As an active lender nationwide since 2008 and with more than 50 years of experience in real estate, banking and finance, MMG Capital has quickly carved out a niche in the marketplace and is one of the more creative lenders in the industry.  Utilizing both commercial and residential real estate, MMG Capital funds bridge loans for a wide variety of purposes.

For all inquiries, contact Chris Gleason,  This e-mail address is being protected from spambots. You need JavaScript enabled to view it  or 310.295.1121 (ext. 301)