re: Doctor Victor & Sterling Bank
I spoke with both Steve Orenstein from Sterling Bank and
Doctor Victor this afternoon. Steve informed me of the following:
a)
Currently Doctor Victor has a credit line in the amount
of $500,000. This has been in place for about 4-5 months and has the
maximum amount of roughly $460,000 is outstanding. Doctor Victor
gave a personal and corporate guarantee in addition to an all asset lien.
b)
Equipment financing has been done with Sterling Bank
for 4-5 pieces of equipment. These loans are amortized over 60 months and
the outstanding balance is just about $400,000.
c)
Factoring of receivables has been discussed however he
stated Sterling is not competitive in that arena. He said Doctor Victor
has 2 receivables outstanding from Saks and Shop NBC estimated at
$500,000. He said they would advance between 75-80% of that total and
then collect from vendors directly. If not collected in 30/60/90 days
then interest would be charged back to Doctor Victor.
I tried to obtain more information from the banker on
Factoring however he stated that was not his specialty and that he would have
to talk to the Factoring Department. He told me that his understanding
from Doctor Victor was that we were looking to help by co signing on his line
of credit and extending it from $500,000 to $1,000,000. I told him that I
was not aware of that and that I was to told to obtain facts on
factoring. Doctor Victor then called and told me that he does not need
JEE help for factoring and was under the impression that you were going to help
by cosigning on line of credit. I told him that I would communicate with
you and we would speak next week. Doctor Victor said he may try to call
you on your cell phone this weekend.
Richard Kahn
917-414-7584