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Business Lines of Credit – What’s Available – August 2009

I’ve been funding business lines of credit for several years. These are the toughest times to obtain business credit lines even with sterling credit.

The only products that we have consistently funded successfully have been factoring, merchant cash advance (MCA), asset based loans (ABL), and hard money loans (HML).

This is an interchange between Mitch – and three of our other business credit line sources. Read this carefully. If you are still interested in moving forward you may call me at 1-800-669-2700 M-F 7AM to 5PM Pacific. I allow 15 minutes of one-time FREE consulting. If you need more time kindly visit http://www.joetufo.com/consulting and buy a block of time.

Alternatively visit http://www.joetufo.com/powerfunding and watch the video and enroll in that program.

Here’s what I sent to Brad, Hector and Daniel three of our business line of credit providers August 17, 2009:

Mitch is a friend of mine. He has the following questions that came in moments ago:

My specific LOC questions are as follows:

My scores as of 8/15 are Exp 761; Equ 768; TU  742

How will the lenders treat the two remaining 2009 inquiries [from the same lender] which resulted in a decline for too many open accounts?

My HELOC reports as an unsecured revolving line of credit.

I have a lender letter dated 5/20 indicating it is secured.

The HELOC has a balance of approx 70% of the available line.

How will this impact my revolving debt ratios, if at all?

One credit card has a balance of approx 49% of the available line.

It can be paid down to 25% or 30%.

How much can reasonably be expected to receive?

When applying to the lenders will the new inquiries be removed?

Here are the responses:

Mitch,

This came in from Brad:

Hello Joe,
It’s good to hear from you.  In general, we have pretty much postponed our business credit services.  As you know, the market continues to be pretty tight, and unstable. Therefore, we are not actively marketing our business credit services in the current marketplace.  We are having some limited success with personal credit, along with some other alternative programs. Once the market improves, we will again market our full line of services.

From what you’ve mentioned below, your friend certainly has strong credit.  However, the debt ratio and inquiries will probably be an issue.  I would have to see an application and credit file in order to give better judgment.  But, as I mentioned, we’re not active in the business currently. How much is he looking to raise?  What were the reasons for the recent declines?  How many banks has he approached/applied?  Is he looking for business or personal credit? (if business, does he have a corp??).  These are just a few initial questions.  Also – we do NOT remove inquiries.  Hope this helps.

Regards,

Brad Wilson

This came in from Hector:

Date: Monday, August 17, 2009, 7:02 PM

Hector,

Mitch is a friend of mine. He has the following questions that came in moments ago:

My specific LOC questions are as follows:
My scores as of 8/15 are Exp 761; Equ 768; TU  742 (Scores are great)
How will the lenders treat the two remaining 2009 inquiries [from the same lender] which resulted in a decline for too many open accounts? ( they can be removed)
My HELOC reports as an unsecured revolving line of credit.
I have a lender letter dated 5/20 indicating it is secured.
The HELOC has a balance of approx 70% of the available line.
How will this impact my revolving debt ratios, if at all? ( This can be looked at a s a second)
One credit card has a balance of approx 49% of the available line.
It can be paid down to 25% or 30%.( Must be reduced to 25%)
How much can reasonably be expected to receive?(The max we get today for any client is 3.5-4 Million)
When applying to the lenders will the new inquiries be removed?( This is part of the process)
Also we need to know the exit strategy for the money.

Thanks Again.

From Daniel:
Hope your weekend was good.  Here are the documents of the products I know to currently work and am involved in.  I have included everything in this one email.

PLOC/BLOC:

You have a 700 Plus Credit Scores on all 3 bureaus No Upfront Fees / No Taxes Returns Needed Qualify for 200k line of credit Close within 14 days Personal Funding Requirements:
— No recent derogs
— Low inquiries
— 40% or less DTI

Business Funding Requirement:

— 2yr+ Old Corporation
— 411 Listed
— Articles of Incorporation
— Letter of Good Standing
— 80 paydex is a PLUS
— Personal Funding Requirements Met
— Funding up to 400K

Debt Servicing
This is on a case by case basis.  The client tells us what payment needs to be covered, how much, and length of time the payment needs to be covered. We will then issue a contract to client with the fee we charge to cover the payment for the length of time requested.  The payment will be wired to the client automatically every month, as we do not pay the bill directly.

We can combine the Funding and the Debt Servicing together upon request.

Investment Club

This can only go out to people you have a prior existing relationship with.  You must sign and send back the MOU prior to emailing your contacts.  Also, before discussing ANY INFORMATION, you must have the potential client sign and remitt the the NCNDNS to us with POF for at least 10k, which is our lowest investment.  We will then schedule a conference call with them to talk about the information and potential returns.  Make sure they are serious about moving forward.  I will not speak with tire kickers or lookie-loos.  Sorry but don’t have the time to just shoot the shit with people.

If you are not interested in these items, please feel free to delete this email.  If you do have interested parties or clients, you can email me with any questions you may have.

Regards,

Daniel

So there you have it, straight from three vendors. As always I am available 7AM to 5PM M-F Pacific to serve you and those whom you choose to refer. Subscribe to this site and receive automatic updates through Feed Burner. Check the site for updates – there are hundreds of pages of useful information. Also check our http://www.workingcapitalfast.com site for ideas on how to fund projects in 30 days or less.


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