Hawkeye Credit Brokers

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Hawkeye Credit Brokers

Imad M.
Investor · Montgomery, AL · Member since 2014 · 54 posts · 11 votes

All,

Has anyone had any experience with these guys? They contacted me stating they can provide easy access to business capital. 

Bottom line is they charge you $30 to do a credit report. Based on your credit they reach out to major credit card companies and get you access to lines of credit. I told them I needed $100K as a startup loan. They said they could get me that amount by getting me access to small chunks of credit lines (cards) essentially (both personal and business credit cards). So I would receive roughly 5-6 credit cards totaling $100K in credit.  I would then set myself up with a merchant account and charge these credit cards the full balance (as needed) giving me cash in the bank to invest in my ventures. 

The catch is they want 12% of your requested amount. So I would have $100K in credit cards with 0% APR for the first 6-12 months and in turn pay this company $12K from those credit cards.

Some questions I had were: 

1. How can I find the creditors  myself and avoid paying these guys the commission?

2. Will I have to pay tax on the amount I charge the credit cards at? The funds will be in my business account once I charge the card so they will look like income.

3. If so, how do I avoid paying tax on that income?

The company is actually called Lend Cred but that is their new name. Their previous name is Hawkeye Managment. Here is the link I found online for them. Let me know what you guys think. 

http://www.hawkeyemgmt.com/wp/unsecured-business-c...

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  • Imad M.
    OP
    Investor · Montgomery, AL · Member since 2014 · 54 posts · 11 votes
    12y

    In the latest phone conversation they have brought down the rate to 8%. So I'll pay $8K on $100K line of credit (several credit cards). The other catch that I realized is they will perform a series of inquiries on my credit which will negatively impact my score. However, for the low cost of $900 they can help remove these inquiries from my record and help raise my credit score again. 

    There is still the matter of how will I report the $100K worth of deposits in my business account once I charge these cards with my merchant account (not sure how much it will cost to set this up yet). Also, in my quick research on merchant accounts the lowest I could find charges 1.75% of the charged amount. 

    In conclusion if this company turns out to be legit (low confidence) I will pay a total of $10,510 to access $92K and a bad credit score. 

    Pro: Its cheaper than a hard money loan and I can reuse the line of credit for future ventures (provided it's within the introductory 0% APR period otherwise there may be interest applied).

    Con: It's pretty obvious...scary to say the least.

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  • Brian Albelli
    Effort, PA · Member since 2015 · 19 posts · 63 votes
    11y

    Hi, first of all your merchant account will be red flagged by the first big settlement that comes through. Running your own cards through your own merchant account is a huge no no, they will close the account if they find out. Also, if your card issuer finds out (they probably won't though) they will close your card for circumventing the cash advance fees. Next, you'll have such a low score from all your credit cards being maxed out. Just find ones yourself, go on credit forums. If you have excellent credit, theres the major players, Chase,Amex,BofA,Citi,Barclays,etc that don't report the trade lines to your personal credit report, try to get the most with them. Next utilize credit unions, if you can join Navy Federal, Penfed, DCU, those are a few good ones that give high credit limits. Hope this helps!

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