Need a Business Line of Credit

9 Replies

Do any one know in good source to get unsecured business line of credit. Newly formed LLC need quick cash and don't want to use hardmoney lenders to get into deals. FICo 738

Not sure that is going to happen on a brand new company…

At least not enough to go buy a house with… Unless… You are in Detroit and buying $3000 houses.

There are several lenders out there that were pushing their “business credit cards”…

But, I think you have to start small and over time build the lines up to higher limits.

These also were asking for SS numbers as you are personally signing for the obligation too.

Try searching online for… “Business Credit”… That is the new “buzz words” to sell seminars books and tapes…

(I always love how promoters re-name something, and promote it like it is something new… They just invented “business credit”?)… :shock:

we do them..

corp must be 2 years old and your fico must be 680. PM me for more specific info. We have corps available but it affects the points you pay for the loan.

Sanjay

“Unsecured Business Line of Credit”
Personal Guarantee Loans and NON Personal Guarantee

** Please be sure to review ALL enclosed information, especially the “Frequently Asked Questions” section on page 2.
Loan Disclosure and Transaction Details

Credit Line Amount:
PREMIUM PROGRAM: $100,000 (minimum) to $1,500,000.00 (maximum)
LARGE LINE PROGRAM: $1,500,000.00 up to $2,000,000.00
ADDITIONAL: $10,000,000.00 and above
Interest Rates: Current Prime Rate + 1% up to 3% (maximum)
Loan Processing & Corporate start up fee: $15,000.00
Loan Fees: 12% of total line amount (financed into line)
Payment Amortization: Monthly payments calculated over 20 years
**Personal Guarantee Required
This is an “unsecured” business line of credit, in which no proof of income or personal assets need to be disclosed for loan approval and funding. All income and asset information is disclosed by the borrower on the application, however, there is no “verification” preformed or required by the Investors / Lenders. To further clarify, Income and Assets are “Stated” and not “Verified” The minimum FICO (credit score) for this loan is 690+ or, the borrower can have a person they know with a 690+FICO complete the program with them. It is not required for the borrower to be a current business owner to obtain financing.

There is a “Loan Processing & Corporate start-up fee” of $15,000.00 required from the borrower to begin the loan process. The loan processing & corporate start up fee is collected from the borrower up front. If for any reason the loan is denied, rejected, or cancelled by the borrower, the entire amount (100%) of the start up fee is refunded to the borrower. This fee is used to process the loan as well as create a corporation for the borrower to which the funds (line of credit) will be disbursed. The borrower is then issued a credit card with which they can access or transfer the funds as they deem necessary.

Upon closing of the loan the 12% loan fee is deducted or charged to the line of credit immediately. This fee of 12% is a “tax-deductible” loan fee, just like closing costs on a typical mortgage loan. We advise you to consult with your CPA or tax preparer in regards to the actual % of tax deduction based on your tax bracket. An additional “Broker Post Funding Fee” may apply to first time applicants, please refer to your agent contact for full disclosure.

These credit lines (loans) are typically closed in 5 to 7 weeks or less, and funds are available for withdrawal by the borrower immediately. All borrowers are eligible for a new or additional credit line every 30 days. By borrowing more than you need, and transferring some of the funds to your personal account, you have the leverage to cover the monthly credit line payments until your business venture, or investment turns a profit and begins to pay off the line.

This credit line is not reported to the borrower’s personal credit report, but rather under the corporation credit rating. This gives borrowers the power to consolidate current debt, 1st or 2nd Home Mortgages etc. resulting in a much stronger personal credit score.

Thanks Paul

Unsecured loans or lines are much like a Heloc (Home Equity Line Of Credit).
Both offer the same competitive rates, both offer a check writing feature,
you only pay on what is drawn upon at simple interest and terms generally run at 5 and 7 years.
The main difference of course is that a Heloc is backed by your home as collateral and an Unsecured line is only backed by a business guarantee to repay with no collateral such as a mortgage, security instrument or other equity.
What are the benefits of an Unsecured Loan?
NO UCC FILINGS to hold up your transaction and to keep you business your own

In plain language, the Uniform Commercial Code allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

No Business Plans
Most banks that offer conventional and commercial financing want to know about every detail of your business and want to know how the funds will be utilized.
Great for business that are less than 2 years old!!!

The general rule of thumb is that if you are looking for working capital you MUST be in business for at least 2-3 years. However with this program, as long as you have been in business for at least one year you could qualify for a Full Doc or NO DOC( basically stated with no verification of income and no Tax Returns.
Faster turn times in getting Funded
Conventional funding can run as long as 2-3 months to get approved (IF you get approved)
Funding an unsecured loan generally takes anywhere from 7 to 10 business days depending upon the compexity of the loan.
How Much Can I Get?

No Doc Personal $10,000 to $75,000 Full Doc to $125,000

Full Doc Business --$10,000 to 1 Million in Business for 2 yrs min

No Doc to $350,000 2 yrs in Business
What Credit Requirements are Necessary?

Minimum Fico Requirement is 680+

The problem is that banks are tightening their guidelines. The days of "I hve a 720 FICO, give me money!" are gone. Banks will not do anyone whose income is derived from residential real estate, ie mortgage brokers, real estate agents and property investors. Also, because of the credit crunch, banks are not giving UBLOCs to start up businesses. They may be willing to do something secured or something backed by SBA

Lines of credit will be helpful in situations where there will be repeated money outlays, but the amounts may not be known upfront and/or the vendors may not accept credit cards, and in situations that need large money deposits – weddings being one good example. Likewise, lines of credit have been usually quite common during the housing boom to fund home improvement or improvement projects – people would frequently get a mortgage to buy the dwelling and simultaneously get a line of credit to help fund whatever renovations or remodeling were required.

Read more info here

http://www.bizbest.com/how-to-get-a-small-business-line-of-credit/

https://www.businessloans.com/guide/business-line-of-credit/

https://merchcash.com/what-is-a-merchant-cash-advance

Originally posted by @Dave Provencher :

“Unsecured Business Line of Credit”
Personal Guarantee Loans and NON Personal Guarantee

** Please be sure to review ALL enclosed information, especially the “Frequently Asked Questions” section on page 2.
Loan Disclosure and Transaction Details

Credit Line Amount:
PREMIUM PROGRAM: $100,000 (minimum) to $1,500,000.00 (maximum)
LARGE LINE PROGRAM: $1,500,000.00 up to $2,000,000.00
ADDITIONAL: $10,000,000.00 and above
Interest Rates: Current Prime Rate + 1% up to 3% (maximum)
Loan Processing & Corporate start up fee: $15,000.00
Loan Fees: 12% of total line amount (financed into line)
Payment Amortization: Monthly payments calculated over 20 years
**Personal Guarantee Required
This is an “unsecured” business line of credit, in which no proof of income or personal assets need to be disclosed for loan approval and funding. All income and asset information is disclosed by the borrower on the application, however, there is no “verification” preformed or required by the Investors / Lenders. To further clarify, Income and Assets are “Stated” and not “Verified” The minimum FICO (credit score) for this loan is 690+ or, the borrower can have a person they know with a 690+FICO complete the program with them. It is not required for the borrower to be a current business owner to obtain financing.

There is a “Loan Processing & Corporate start-up fee” of $15,000.00 required from the borrower to begin the loan process. The loan processing & corporate start up fee is collected from the borrower up front. If for any reason the loan is denied, rejected, or cancelled by the borrower, the entire amount (100%) of the start up fee is refunded to the borrower. This fee is used to process the loan as well as create a corporation for the borrower to which the funds (line of credit) will be disbursed. The borrower is then issued a credit card with which they can access or transfer the funds as they deem necessary.

Upon closing of the loan the 12% loan fee is deducted or charged to the line of credit immediately. This fee of 12% is a “tax-deductible” loan fee, just like closing costs on a typical mortgage loan. We advise you to consult with your CPA or tax preparer in regards to the actual % of tax deduction based on your tax bracket. An additional “Broker Post Funding Fee” may apply to first time applicants, please refer to your agent contact for full disclosure.

These credit lines (loans) are typically closed in 5 to 7 weeks or less, and funds are available for withdrawal by the borrower immediately. All borrowers are eligible for a new or additional credit line every 30 days. By borrowing more than you need, and transferring some of the funds to your personal account, you have the leverage to cover the monthly credit line payments until your business venture, or investment turns a profit and begins to pay off the line.

This credit line is not reported to the borrower’s personal credit report, but rather under the corporation credit rating. This gives borrowers the power to consolidate current debt, 1st or 2nd Home Mortgages etc. resulting in a much stronger personal credit score.

Thanks Paul

 Do you still hsave this product? I have several clients needing this.

Any service provider can please respond. Thanks

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