Impact Holding Group, Inc.

Wonderful company. They helped save my business!

Review: I recently was looking into growing our small business and was referred to Sprout Lending. I was given Ralph M[redacted]’s name and phone number by another colleague/business contact. When I first spoke to Mr. Ralph M[redacted] on June [redacted], 2015 he asked how much we were looking for on a small business loan. I explained $20,000 would be enough for the additional cash flow and inventory we wanted to order. He sent me an application the same day. I thought I would give us a little more flexibility and on the application I applied for $25,000. Mr. M[redacted] quickly got back to me and said after review of the application they had me “secured” my company for $50,000. I thought great, I was approved for more than we needed, but I never wanted more than $25,000, which I clearly had outlined on my application. (Please see attached application.) He sent me some additional paperwork to fill out and I did see the $50K on there, but again thought it was just an amount I / my company was approved for. I know the terms on $25,000 would cost us $33,750 in receivables. Thus, I / Innovative Health Systems would be paying $8,750 in effect interest on the “loan.” This would be within our company’s budget.

On Friday, June [redacted], I took a phone call while I was driving and it was someone from either Sprout Lending or Merchant Cash & Capital verifying some more information on my business Innovative Health Systems. As it is now, I do not recall for sure which of the two companies it was, as I was driving and not able to understand everything they may have been conveying or asking of me. They tell me now that this was a verification call of terms, to which I do NOT recall agreeing to at all. To my surprise I woke up on Monday, June [redacted] to see $49,500.00 had been deposited into our business account. I called Ralph M[redacted] immediately to explain I don’t need or WANT the $50,000 “loan” and that the payback amount is not at all within our companies’ budget. More specifically I made it CLEAR that I had NEVER applied for this amount. He (Ralph M[redacted]) told me we had to wait 2 weeks before we could do anything. Since then I have tried getting ahold of Mr. M[redacted] through phone calls, texts and emails with no success. It seems to me, that this was just him wanting to push me off until he could get his commission / brokerage fee on the “loan” which he UP-SOLD to us without me EVER requesting this amount. As it turns out, this is really not a “loan” at all, but rather it is me / my company Innovative Health Systems selling a block of receivables at terms that are going to cripple my company.

I am not trying to get out of this loan / contract completely. I am simply requesting that they allow me to return $25,000 of the funds they sent to me on the June [redacted] 2015 and send me a NEW agreement for the $25,000.00 with the payoff of $33,750.00 which we had discussed and I had CLEARLY only applied for. I will honor this, as that is what we had discussed, and I applied for. I need to have it adjusted to what I originally asked for or I will lose my business, and the agreement is personally guaranteed, which I am now to more completely understand. This could result in me losing my home and my wife and daughters NOT having a place to live. I never wanted $50K, the terms on $50K will costs our company $67,500 in receivables. In addition, the daily payback amount is $535.72. That means we would be paying at least $10,714.40 each month. Our small company cannot afford that large of a monthly bill and will be forced to shut down leaving over 20 staff members without employment. Again, I am not trying to get out of our loan completely but our company’s future will depend on Sprout Lending and Merchant Cash & Capital working together with us to adjust the “loan” as we discussed, and only as I HAD APPLIED FOR.

A mentor of mine has been able to get ahold of Mr. Ralph M[redacted] a couple of times, but ONLY when he is travelling and calling from different phone numbers, and once he is able to speak with Ralph M[redacted] he states he is trying to work on fixing the terms to what I had asked for and he will return a call to him. Yet, Ralph M[redacted] from Sprout Lending has NEVER called him back, and nothing has been changed. Also, we have left messages for a “Mr. R[redacted]” at Merchant Cash & Capital to discuss this major problem, and we have never received a return call. Thank you for your time and consideration in addressing this serious matter, as we see this as a sort of up-sale “bate-n-switch.”

Sincerely,

###-###-####Desired Settlement: Adjust the loan/payment to an affordable amount or the amount applied for.