UNSECURED BAD CREDIT BUSINESS STARTUP HARD MONEY PERSONAL LOANS

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Monday, October 2, 2017

Obtaining Business Credit Cards, Its Harder Than You Think

Most small business owners believe that obtaining a business credit card is as easy as having good FICO scores and applying online. In some cases they are correct, but in most cases they are very wrong.

Applying for business credit cards without knowing what you are doing can damage your personal credit, get you declined, and make it impossible to get approval at other institutions for 6 months to a year. Why is that?

Currently there are about 30 banks and credit unions that are actively involved in issuing business credit cards. Each of these lenders has a different set of guidelines for approval, but there are a few underwriting items that hold true for almost all of them.

The first is debt utilization. These lenders want to see that your current debt utilization for all existing revolving accounts is less than 40% current account balances to your maximum approval limits. In simple terms, if you have $10,000 in total limits from 3 credit cards, they want to see that no more than 40% of $4,000 has currently been used. If your debt utilization is greater than 40% you will most likely be declined.

Second is do they have a personal relationship with you. Let’s face the facts, all these credit card providers want your personal business because that is where the higher limits are and that is where you are more likely to use the cards more often.  While some of these lenders will approve you for a business credit card, your approval limit will be much lower than if you already have a personal credit account with them.

Chase for example provides excellent terms and credit approvals for their personal credit cards. Once those are approved you can wait just 48 hours and apply for the business credit cards for which you are likely to see approval limits of double what you might have received without having the personal cards first. So the funny thing is that if you applied for just the business card you might have received an $8,000 approval. But by applying for the personal cards first you may have gotten approved for a total of $25,000 or more there and then the business approval comes in at $16,000 or more. Therefore instead of only $8,000 you may have obtained $40,000 in approvals from the same financial institution. All of which could be used towards supporting your business.

The bottom line is that applying for credit cards in general, for use in your business, is a very detailed process with a lot of moving parts. There is far more to it than simply FICO scores and online applications. What you as a consumer most likely do not know is that the first part of the approval process is all automated and completed computer to computer. You apply online via your computer and their computers start checking many other computers to determine the automated approval or decline decision and assign the credit limits based solely on what gets returned from those other computers. If you are a normal consumer once that happens you are done.

But the process is actually very far from being done. The next step is what is called the credit reconsideration lines. These allow you to connect with a live person and request that a live underwriter review your account to determine if the assigned credit limits can be increased. As with any live process, the underwriter will want to know why and what the increases will be used for. If you know the proper answers then many times credit limits can be increased manually from 25% up to 100%. We have even seen declines reversed for up to $20,000 in approvals. Most consumers have no idea these live person reconsideration lines exist and even if you did, you would have no clue as to how to most effectively utilize them.

Many lenders specializes in the placement of Unsecured Business Financing or UBF. Here we work with over 30 different banks and credit unions to maximize your approval limit opportunities.  The average per principle funding approval amount has been $108,000. The approvals are available to any business, startup or established does not matter. The approvals are based on the principal(s) of the business and not on the business itself, therefore if the business has four (4) principals it may be possible to obtain $400,000 in financing.

The process of finding out if you pre-qualify is a simple as contacting them to find out. There are no upfront fees and your only payment for the success in funding obtained on your behalf can be paid from the new credit lines that have been obtained for you so there is absolutely no risk to you and nothing to lose.

Monday, April 3, 2017

Start Up Business Loans - Help for Your Business

Nowadays there are a variety of young entrepreneurs entering the financial field. They may not be able to flourish because as they are young they do not have a deep capital base. For such reasons start up business loans are designed.

These credits can be applied for by a business that is still on its training wheels. There are various needs in a business that require money for its fulfillment. Such as; purchase of machinery, tools and other supplies. They person who applied for these finances Can use them any way he chooses.

Start up business loans are offered to those who people who are running a legal business. The finance is granted only to a registered organization. The lender before granting the advance checks the profitability of the proposal he is to finance. If he does not think this endeavor to be profitable, he does not lend the credit.

These credits are generally unsecured as the business is fairly new. They may not any assets which can be pledged against the loaned amount. Thus the rate of interest rate charged is high. If the applicant is willing to pledge some security against the amount loaned to him, he can avail of more amount of money at a higher rate. The lender is safe in an unsecured loan, as if the borrower defaults in repayment, he can sell the asset and recover the money. He faces no risk in this kind of transaction. The amount granted ranges from £5000 - £5, 00,000 for a period of 5- 25 years.

These advances can also be applied for online. This mode is preferred by a number of people. This mode of application is free of cost. The borrower is only required to fill a simple application form giving details of his name, address and contact number. The entrepreneur is also required to have a valid current account and debit card.

Friday, January 20, 2017

Basics of Startup Business Loans

You have heard and are convinced that the best way to make money is to start your own business. Besides, you have this great business idea that will rake in the money in fistfuls. However, you need more money as capital than you have saved up for this. You have a few options before you. You can either sell equity in your new company to obtain finance or apply for startup business loans.

The Equity Route
If you chose the equity route, you need to share control of your business with your investors. This prevents you from having a free hand and slows down decision making - something that can affect the profitability of your enterprise. Moreover, you have to share your profits with the investors.

Startup Business Loans
You can also decide to obtain loans to help finance your startup. However, this is easier said than done. Most banks consider startup business loans as high-risk loans. This is because many businesses fail within a few years. Bankers consider small business loans for start ups as personal loans. So if your credit history is good, you have a fair chance of obtaining the loan.

You other option is to obtain the equipment you need on lease from finance companies. Since they retain a lien on the equipment, the interest rates are low and your credit history need not be very good.

Preparedness
Whether you choose to obtain a startup business loan or finance from a leasing company, you need to be prepared to answer all their questions. Have the proper documents such as your company's business ID as well as your business plan all ready. Financial documents that you need will include bank statements for the past three years in case yours is an existing business and potential opening day receipts in the case of a new business. Be clear in your mind about the nature of your business and provide convincing reasons why you think that your business will be profitable.

Bad Credit
Even if your credit history is not so good, you can obtain credit to run your startup. However, you need to keep in mind that obtaining bad credit startup loans is tougher. You have to go the extra mile to convince potential creditors of your business idea. As banks might not be in favor of lending to you, you need to approach the small business administration for getting credit business loans.

Minority and Women Run Businesses
In addition, if you are a member of a minority group or a woman, then you qualify for certain startup business loans. For this, the first step you need to take is get your business certified as owned by a person belonging to a minority group or a woman. Once you complete this step, obtaining a loan for your startup is easy.

The best way to obtain startup business loans is to convince potential creditors of your commitment to the idea and the financial viability of your business plan.