Real or Scam? Question on Business Line of Credit

Real or Scam? Question on Business Line of Credit

Real Estate Investor · Springfield, OR · Member since 2010 · 4 posts · 1 vote

Have anyone done business with Mikyle Jessen (http://www.linkedin.com/pub/mikyle-jessen/29/376/333) from Midwest Corporate Credit, Inc?

They provide unsecured business line of credit.(http://midwestcorporatecredit.com/Our_Service.html). This is the information he provided.
The Credit lines are based on PERSONAL CREDIT. Your business does not have to have any credit. It helps if you have a business credit profile already.
- Your business can be newer
- Interest rates vary from 8.99% to 16.99% (This is based on the lender's underwriting criteria and your personal credit)
- Unsecured credit lines. No collateral required.
- Stated application process. No income verification.
- The lenders that I have handpicked ONLY report to the business credit bureaus (Dun & Bradstreet, Corporate Experian, and Equifax Commercial). This is advantageous to a business owner because even if the lines are maxed out, it will not affect the business owner's personal credit. They will report any defaults to your personal credit though. Therefore, DON'T DEFAULT.
- Most lenders offer an introductory 0% interest for 6 to 12 months on either balance transfers or purchases or both.
- The process takes about 30 days. My partner has been successful in obtaining $75,000.00 in credit for his own business within a 30 day period. These results are not guaranteed for everyone. Your results may vary based on your credit.

The terms all vary depending on the lender and your credit, therefor each applicant is evaluated on a case by case basis. The first step my clients take is fill out a pre qual form, this will give us a snapshot of your business, and the credit worthiness of the applicant which will determine if you qualify for funding, and up to what amount. If your a good candidate and your pre qualified with us, we guarantee you $50,000 in obtaining these lines of credit within 30-60 days of your initial application.

Pre Qual Process: the client must set up accounts with MyFico.com and TrueCredit.com, promo codes are available to receive 25% off the registration, which is less than $40 for both accounts.
Monthly Credit Monitoring also available, good idea if you want to keep an eye on your scores and reports, but not required.

To answer your questions
1) There are no Upfront fee's
2) MyFico and TrueCredit give us the clients reports for all 3 credit bureaus, Myfico uses Transunion and Equifax, While TrueCredit uses Experian
3) Login ID and password are required that we can review the full FICO reports and do a thorough evaluation of the clients credit worthiness
4) Once we complete the pre qualification process, the client no longer needs the Myfico and True credit accounts, although credit monitoring is helpful!
5) These accounts do not give us access to any personal information of the client such as (SS#, EIN#, account #'s, etc) these sites conceal such private information. Thru these accounts we can review the clients credit score's with ALL 3 credit bureaus and their full FICO report.
6) We charge 8 points of the approved line amount once it's approved. Pre qual process takes 48 hours, once the client completes the full application and returns it to us we can get them the $50,000 within 30 days. In some cases, the client has inquiries on their credit report, or revolving debt on their existing credit cards which will take us time to remove so we say 30-60 days for those clients. But, if they are our ideal client then 30 days to get the funding is normal.

Can any of you give me some feedback on their products and services?

Thank you very much!
Athena

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Real Estate Investor · Alpharetta, GA · Member since 2010 · 415 posts · 484 votes
15y

Just take a look at the site.

Not one name.

Not even a phone number, just dashes where the phone number is supposed to go. Wow, talk about lazy.

Even the link to their Privacy Policy just goes to a privacy policy generator, not even a template of an actual privacy policy.

This is all just beyond sloppy.

And what they're not telling you is that none of these lines are going to be with an actual bank or cash lender. At best, you're looking at lines of credit with places like Staples and other business products companies.

At least they're not trying to gouge you for $5,000 up front. However, they probably want 10% of the line of credit obtained. Are you really going to pay someone 10% to hook you up with a Staples card?

These business credit services are scams, the lot of them. Maybe what they provide complies strictly with the finest of fine print, but you are 100% absolutely not going get what you want.

So, as always, read the fine print. I bet there's a lot of it.

Oh, and am I reading this correctly?

3) Login ID and password are required that we can review the full FICO reports and do a thorough evaluation of the clients credit worthiness

So, they want you to set up a MyFico account and then hand them your ID and password? YEAH, RIGHT! While I'm at, I'll give you my original birth certificate, too.

See this reply in the discussion

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  • Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
    15y

    True Credit actually scores the credit differently than is on your actual reports. You will typically score higher using that service. I am sure that the company is sending you a link to sign up through. They get paid as an affiliate. We actually do the same with our tenant/buyers. I think it sounds much more legit that there is not an up front fee. I would absolutely ask to speak to folks that they have helped.

  • Real Estate Investor · Alpharetta, GA · Member since 2010 · 415 posts · 484 votes
    15y

    Just take a look at the site.

    Not one name.

    Not even a phone number, just dashes where the phone number is supposed to go. Wow, talk about lazy.

    Even the link to their Privacy Policy just goes to a privacy policy generator, not even a template of an actual privacy policy.

    This is all just beyond sloppy.

    And what they're not telling you is that none of these lines are going to be with an actual bank or cash lender. At best, you're looking at lines of credit with places like Staples and other business products companies.

    At least they're not trying to gouge you for $5,000 up front. However, they probably want 10% of the line of credit obtained. Are you really going to pay someone 10% to hook you up with a Staples card?

    These business credit services are scams, the lot of them. Maybe what they provide complies strictly with the finest of fine print, but you are 100% absolutely not going get what you want.

    So, as always, read the fine print. I bet there's a lot of it.

    Oh, and am I reading this correctly?

    3) Login ID and password are required that we can review the full FICO reports and do a thorough evaluation of the clients credit worthiness

    So, they want you to set up a MyFico account and then hand them your ID and password? YEAH, RIGHT! While I'm at, I'll give you my original birth certificate, too.

  • Real Estate Investor · Springfield, OR · Member since 2010 · 4 posts · 1 vote
    15y

    My questions to him:

    1) You gave me the ranges of percentage (8.99%-16.99%). Can you give me a couple of examples of the points included in the interest rates? For example, if someone has 730 credit score. Two credit cards with $1,000 available balance for each.

    OR

    If someone is qualify for 6%, how does 8 points affect the interest rate?

    2) Does 8.99% has the points included?

    His response:

    The interest rate and the amount we charge our client is completely separate. The interest rate on the line of credit is determined based on the clients personal credit score.

    If someone has a 730 score with two credit cards with a $1,000 balance on each then they would be considered a good candidate, rates will vary between 8.99%-16.99%.

    The 8 points we charge once approved is 8% of the line amount. For example, A client gets approved for $100,000 at 11% rate with an introductory no interest for the first 6-12 months on balance transfers or purchases, the fee would be $8,000.

    Same scenario different numbers client gets approved for $50,000 at 14% rate our fee would be $4,000. 100 x 8% = 8 or 50 x 8% =4.

  • Real Estate Investor · Alpharetta, GA · Member since 2010 · 415 posts · 484 votes
    15y

    If you really have time to waste, ask if any of these lenders actually loan money, meaning they give you a line of credit that you can access for any purpose at any time using a check.

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    15y
    Originally posted by RobTheHouseGuy1:
    ... I would absolutely ask to speak to folks that they have helped.

    Take this piece of advice, along with what Paul/Deuce just wrote.

  • Real Estate Investor · Alpharetta, GA · Member since 2010 · 415 posts · 484 votes
    15y

    Whatever you do, read the paperwork -- every word of it. And just remember the oldest of sayings about things that are too good to be true...

  • Commercial Loan Officer · Southern Maine, ME · Member since 2009 · 782 posts · 415 votes
    15y

    There isn't much information on them, good or bad, to be found.

    I will say that if they are scammers the net is usually full of irate customers posting their expereince on places like ripoffreport. I don't find that to be the case here. That's a good sign, but the lack of information on this company doesn't impart a lot of confidence either. Could be a new company with a new face using old tactics.

    Unfortunately, the unsecured lines of credit world is full of intermediaries who promise the world, but most often are frauds. The lack of an upfront/application fee with this company is another promising sign, but I'd make sure you ask 10 different ways that there are no upfront fees of any kind before proceeding.

    Keep in mind that the amounts they mention are at the upper-end of what's attainable. I wouldn't go into this thinking you're going to obtain $50,000. Most lines are much, much lower.

    If you could in fact qualify for $50,000 you should go to Wachovia/Wells Fargo for a line of credit. They have a good program and you'll save 8 points.

  • Real Estate Investor · Alpharetta, GA · Member since 2010 · 415 posts · 484 votes
    15y

    Darryl, this company was incorporated only one month ago: February 17, 2011.

    Give it time!

  • Commercial Loan Officer · Southern Maine, ME · Member since 2009 · 782 posts · 415 votes
    15y

    In that case, sign me up!

    We need an internet detective award.

  • Real Estate Broker · Fort Pierce, FL · Member since 2009 · 221 posts · 95 votes
    15y

    As I said before in another thread:

    Originally posted by Stan Jackson:

    Therefore, I would like to remind (warn) new members that there is a vast amount of experience actively posting or simply reading post.

    And, if it is your intent to registered with BP just to 1) Only to get, but never give or 2) Propose a scheme to defraud, well then, the responses will be appropriate.

    And, I'm not saying that proposing a scheme is the intent of the OP, just that if someone does come to BP to do so, please be forewarned.

    Duece, forget the BC, just give them last 16 digits of your credit card.

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    15y

    Hmm, one of the partners in this firm is now a BP member; here is link to his profile:
    http://www.biggerpockets.com/users/MikyleGJessen

    A snippet from that profile that seems to be inconsistent with being in existence since only February 17, 2011:

    Originally posted by profile of Mikyle Jessen:
    ...
    We've done this with hundreds of other clients just like you ...
  • Investor · Tampa , FL · Member since 2011 · 10 posts · 1 vote
    15y

    Thanks to all for the investigative info..

    I for one appreciate it....

  • Real Estate Coach · Arlington Heights, IL · Member since 2011 · 7 posts · 0 votes
    15y

    Once in a blue moon, I have the time to type in "Midwest Corporate Credit, reviews" into google to see what comes up. This time, I saw this post.

    Athena: Mikyle Jessen reports to me. I can attest to his honesty and integrity. The outline that he sent you on our program is exactly what we deliver.

    Paul B: I appreciate your constructive criticism. We have modified our website to reflect our company address and phone number. How come your website doesn't reflect your corporate address? (I mean that with all due respect). Yes, I incorporated the company in Feb 2011. Before that, I operated as a sole-proprietor since it was a part time business for me (Real estate investing being the full time venture). You make comments such as "these business credit services are scams." That's about as silly as saying "all NYC cab drives are crooks." Yes, there are lot of corporate credit companies out there that make huge promises and charge $3K - $5K upfront before even taking on a client. We aren't one of them and to prove that, we charge NO up-front fees. We only charge our clients if we deliver results and get them CASH lines that can be transferred to their bank accounts and actually used to buy properties with. Other than visit our website and check out the Secretary of State's website, have you done ANY other due diligence on our company? Have you in any way communicated with any of our personnel? If not, sir, then is it fair to act like a cyber "superhero" and try to save all these innocent people from big bad corporate credit companies such as MWCC by posting such slanderous remarks on these forums? Don't get me wrong, I embrace the constructive criticism because it helps us grow and improve, however, to call us "scammers" is extremely inappropriate and unprofessional. As someone once said "small minds discuss other people, mediocre minds discuss events, and great minds discuss ideas and concepts." I suggest you participate in more productive forums in which ideas and concepts are discussed. Good day to you, sir.

    Respectfully,

    PK Patel
    President
    Midwest Corporate Credit, Inc
    [ADDRESS REMOVED]

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    15y

    I spoke to Jessen 7 or so months ago. He told me he would send information about his program and never did. Good riddance!

  • Lender · Chicago, IL · Member since 2010 · 149 posts · 127 votes
    14y

    Hi Athena, I do not know if you were funded or not. I am interested to learn. I have read all of the posts and Paul seems to be overly negative with nothing to go on. I am talking to the company now. There are no lenders from the biggest of banks to the smallest of hard money lenders that will fund every request they receive. from the information I am gathering they seem perfectly credible. Also the rate and fees are not comparable to going to your banker. Finally, they are a broker. Not a direct lender.

    But let me know if you applied and were funded or not.

  • Lender · Chicago, IL · Member since 2010 · 149 posts · 127 votes
    14y

    By the way Better Business Bureau Rates the company A+

  • Real Estate Investor · Richmond, VA · Member since 2013 · 22 posts · 0 votes
    13y

    What was the result?
    Scam or not? I'm curious......

  • Real Estate Investor · Springfield, OR · Member since 2010 · 4 posts · 1 vote
    13y

    My overall experience was great. Mikyle did respond my request in a timely manner. I think based on my profile I got unsecured business credit cards instead from their connection of lenders. The interest rate on one card is slightly higher than I expected though but everything else is fine.

  • Investor · Chicago, IL · Member since 2013 · 227 posts · 31 votes
    13y

    I'm actually starting the application now. I'll let you know how my overall experience was. Anyone else have experience working with this company?

  • Wholesaler · San Diego, CA · Member since 2011 · 11 posts · 1 vote
    13y

    Athena and Samson, any updates? I am starting my application with them now too and would like to hear any tips or things to watch out for. I still cannot find any negative reviews or complaints about them and it's been a couple of years. Thanks for your help!

  • Investor · Birmingham, AL · Member since 2012 · 30 posts · 2 votes
    13y

    I am dealing with a similar experience with this type of company. I first heard this at my AIA meeting and the company I am dealing with is called Aurelian Commercial Lending. The customer service is pretty good and the experience overall has been good. Everything above is true. There is a charge a one-time charge 10%-15% of the total you get approved for. It has taken a little over about 30 days and I am over $45,000 in lines of credit. As of right now, I don’t think this is a scam, just be sure to use the money wisely and do research. I was denied by Wells Fargo for a Business Line of Credit, so I choose to go this route. I hope to have a deal that will cover the one-time fee and use the line of credit as another means to acquire real estate.

    Some surprises to me was that you will get several business cards with small credit limits that will equal to the amount that you qualify for. @PKPatel is it common at the end of this process to ask for the account numbers of the credit cards? Also, I have heard that it is possible to transfer the credit line into your bank account without incurring cash advance fees?

  • Real Estate Investor · Ankeny, IA · Member since 2012 · 5 posts · 1 vote
    11y

    Samson - I was reading your July 9, 2013 post, stating you were starting the application process. Did you get funded? Any issues? Length of time from application to funding?

    I'm looking into this company to seek funding.  Curious, do you have a follow up of your experience?  

  • Toms River, NJ · Member since 2014 · 27 posts · 5 votes
    11y

    Any updates on this thread?

  • Investor · Florence, KY · Member since 2015 · 40 posts · 19 votes
    11y

    I'd also like an update on this, and really interested in hearing from someone who has obtained lines of credit through MWCC.

  • Investor · Shawnee Mission, KS · Member since 2015 · 423 posts · 114 votes
    11y
    With credit unions you will receive better and more predictable result
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