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  • What are the requirements needed for business verification to obtain funding ?

    • 6-12 months statements
    • Drivers License color copy front & back
    • Voided Check
    • Business Lease/ Business Mortgage
    • Landlord Contact Info
    • All applications complete, dated and signed
    • 3 trade references (known business owners)
  • Since the repayment is daily, how will I know if I can handle it?

    Since the approval amounts are based on the cash flow, several factors are considered as part of the approval, including the average daily balance and the consistency of the cash flow. Based on these factors and an analysis of your cash flow, only an amount your business can handle is approved.

  • We have three partners in the business and we are each 33.33% owners. Do all three of us need to apply and sign the closing paperwork, or can it be just one of us? Can we get approved just in the business name with none of the owners signing?

    For this loan, at least 51% of the ownership has to apply. In your case, 2 of the 3 owners would need to apply. This product is not approved just in the name of the Corporation. The owners are on the application and then sign on the closing paperwork.

  • Can we qualify?

    If your business has sales, it can qualify. The higher the sales, the more your business can qualify for. In general, the business should have at least $10,000 to $15,000 in deposits per month and making at least 5 deposits per month or gross an average of at least $120,000 a year. The higher the average daily balance is, the higher an approval will be for. A business that deposits $10,000 per month into the account and keeps an average daily balance of $25,000 will qualify for significantly more than a business that deposits $10,000 per month but only has an average daily balance of $1,000.

  • We have had some slow business credit reporting recently due some of our clients that have paid us late. How closely is the business credit looked at?

    The business credit is looked at, but it is only a small part of what is looked at that is considered. The business credit score can be somewhat low and it will not affect the decision or approval significantly in most cases. The business credit has to be significantly deteriorated in order for it to have a significant effect on the decision, or even turn what would be an approval into a decline.

  • How fast can we obtain the funding?

    In most cases, funding can be obtained within 4 weeks or less. Once you are given the stipulations from the underwriters and you can provide everything back in a timely manner than funding can take place in as quick as 7 to 10 business days.

  • Can we use the line again after it is paid down?

    Yes, your business can use the business bank statement loan over and over, just like a line of credit. In fact, once the line is paid down 60%, your business can draw the remaining credit line, and use it again for its working capital needs.

  • How likely can we qualify for larger line sizes later?

    Very likely. In most cases, line size limits are increase significantly just based on repayment. If your business has increased cash flow during the term of the repayment, line size increases can be dramatic, as much as 100% or more.

  • What is the term of the financing?

    Terms vary, and in most cases are 2, 3, 6, 9, 12, and 18 months.

  • Is there an advantage to early payoff?

    Since this is short term financing to begin with, the vast majority of customers do not have the interest to pay off early since the repayment is 6 months or less in many cases. If early payoff does occur, early payoff advantages are limited since the repayment term is limited to begin with.

  • Is there any way to get a larger line size?

    Yes, if your financial statements are strong, please provide your most recent year’s Profit and loss statement or the prior years business return. Strong financial statements are statements which have good Gross Sales and net income of $120,000 per year or higher. In addition, if the average balance or average total deposits of your most recent 6 or 12 months business checking account statements is higher than the average balance or average total deposits for just the most recent 3 months, then provide 6 or 12 months. The approval obtained may be higher by doing so.

  • I have not done this type of financing in the past, and I am concerned about the short repayment term. I am worried that I may be able to handle the daily repayment for a while, but that it would catch up to me and I would have problems repaying. Will you work with customers if this issue comes up?

    Yes. One advantage of this business bank statement loans program is that you do not need to take the full amount approved. Your business can begin with a lower amount that it feels very comfortable with. Once you repay that, you can go up to a higher amount.

  • What are Unsecured Business Lines of Credit good for?

    Unsecured business credit lines are great to use for debt management, working capital, startup funding, and almost anything that is not a long-term project. It’s important to understand that, as a rule of thumb, a long-term project is anything over 12-18 months…but this is not true for all situations…it’s a good rule of thumb however. It also depends on whether you’re utilizing a traditional, bank-draft unsecured business credit line or the credit card model as to the best strategy to employ.

  • Are credit cards Unsecured Business Credit?

    Absolutely. The properly utilized business credit cards will often cost you less in interest expenses than traditional unsecured credit lines if they are managed properly. Because of this, and because of the growing difficulty in getting traditional, bank-draft unsecured business credit from banks, many business owners are turning to using business credit cards as their primary unsecured business lines of credit. Some, unfortunately turning to the wrong sources.

  • Will I need to submit my tax returns, W-2′s, or any financials?

    Yes. In most situations BFS, Inc. does collect your financials for verification.

  • What if my business is new, can I still get lines of credit?

    Absolutely. In fact, many of our clients are owners of new or start-up firms or investors who use the funds for investment purposes.

  • What if I can verify at least $1 Million in Annual Sales for the last calendar year?

    If you have verifiable annual sales of between $1 Million – $10 Million then you will have more options for additional capital and additional products. The additional options require a complex strategy if you are looking to raise a significant amount of capital and there are certain limitations depending on your industry and geographic location..

  • What if my business is new, can I still get lines of credit?

    Absolutely. In fact, many of our clients are owners of new or start-up firms or investors who use the funds for investment purposes.

  • What if I can verify at least $1 Million in Annual Sales for the last calendar year?

    If you have verifiable annual sales of between $1 Million – $10 Million then you will have more options for additional capital and additional products. The additional options require a complex strategy if you are looking to raise a significant amount of capital and there are certain limitations depending on your industry and geographic location.

  • Will Unsecured Business Lines Credit affect my personal credit report?

    When properly set up, unsecured business lines of credit do not report to your personal credit report unless you go into a default status.

  • I have great credit, what’s the problem, why can’t I have what I want?

    Great credit is a good thing. And it will help you in everything you do as a business owner. But good credit alone does not get you across the finish line. It’s really just the beginning. There are many other necessary elements to understand. The right lender needs to be identified, the goal you’re wanting to accomplish, what type of unsecured business credit line is best for your situation, what your company will actually be able to obtain, etc. – these are some of the items that must be identified if you wish to obtain unsecured business credit.

  • If I have someone else who has better credit than me, can I use them as my credit partner or personal guarantor?

    Yes. However, be sure to do this the right way. We do not want anything to do with someone using a straw buyer scheme but if you have a legitimate person who is fully aware of the role they are playing with you as your credit partner then we can help you both to ensure that this is executed properly and compliantly. Your credit partner needs your full authorization to borrow on behalf of the business and needs to go through our consultation and compliance phone call which verifies identity and confirms their full knowledge of their role. This is a very good option when it is done correctly and that all parties are fully aware of their roles and that all lender applications are filled out completely and honestly. Ask us for more details if you would like to learn more about working with your Mom, Dad, sibling, Uncle Louie, or any other friend or partner as a credit partner.

  • How much capital can I raise through the Unsecured Business Credit Program?

    For each individual you can raise between $5,000 – $1,000,000,000 and higher. In our program it’s common for people to get between $40,000 – $60,000 within the first 30 days. We’ve had some clients get approved for as much as $150,000 or more within 15-30 days but $40,000 – $60,000 is more normal. Although it may not all come in the first 30 days, if BFS, Inc. accepts you as a client meet all qualifications, we may be able to guarantee you a minimum of $5,000 and up.

  • Since there’s no collateral what happens if I default or stop making payments?

    Since there’s no collateral what happens if I default or stop making payments? Unsecured credit lines are obviously unsecured but just remember, there’s still a PG (personal guarantor) who signs for the repayment of the loan. If you default on a mortgage or a car loan there is obvious collateral attached to the loan that protects the lender. With unsecured credit you must keep in mind that if you default or stop making payments that the lenders will still do whatever they can to collect their money. So don’t confuse unsecured with non-recourse.

  • I have a good paydex score isn’t that better?

    A good paydex score… is a good thing to have… and we suggest that all business owners purposely go after an excellent D&B report. Sometimes the paydex score and D&B profile can be important when going after certain types of unsecured business lines of credit. However, there are other times when it’s completely a non-issue.

  • What are the rates for unsecured business lines of credit?

    Unsecured credit lines are not typically rate-driven products like mortgages and other long-term forms of financing. Hopefully that goes without saying but, just in case, be sure to keep in mind that unsecured business lines of credit are NOT designed or intended to be used as long term products like mortgages and nor are they intended to be specific to any one deal, purpose, or instrument like car loans, student loans, and other installment loans. Unsecured business credit, unlike these other forms of financing, can be used over and over and over again for many different reasons and purposes. Although any good thing can be set up poorly and you should ALWAYS know what the rates and terms it’s safe to say that you don’t shop rates on unsecured business lines of credit like you do for mortgages. It’s not that the rates are not important but they almost never make or break a deal. At the end of the day, the best approvals go to businesses that provide full income documentation (tax returns), have very good credit scores, good liquidity, and appear to be the lowest risk to the lender.

  • What is a UCC filing and do unsecured business credit lines require them?

    A UCC filing is almost like a mortgage against your business. The UCC’s will be seen by other lenders who you apply with in the future. When obtaining lines of credit make sure you find out if the lender will take a UCC against your business or not. This is not necessarily something that should always be avoided but it is something that should be planned and part of a strategy so that you allow the right lenders to utilize UCC’s when they are required by the lender. Technically, a loan or line of credit that requires a UCC from the lender is not “unsecured.”

  • For Small Business Owners what do you mean by Debt Management?

    Think about it like this. Almost all wealthy individuals, and many who have plans to build wealth, hire financial planners. What do financial planners do? They manage assets. One of the most common problems that business owners face is not in managing their assets but in managing their debts. The more wealth people have the more debt they have and in order for any business to grow they must have access to capital (aka Cash). Access to capital means creating more debt and properly creating that debt as well as properly managing that debt requires strategies and tactics that most business owners are not trained and equipped employ. Ask yourself if you have the training and experience to manage debt effectively using the very best strategies that are available on the market today – we’ve been doing this for years and it’s all we do and we are constantly learning each and every day.

  • How can I get some of these unsecured business credit lines?

    You’ve really got 2 options. Your first option is that you could hire BFS, Inc. We submit hundreds of business loan applications and business credit applications to several different lenders every month. We know which lenders are lending and whether you and your business will be a good fit for them and we also know how to make sure you have the correct business credit application and credit profile before you submit those applications. Your second option is you can try to do it on your own. Do you know which lenders offer unsecured business credit without full income documentation? Do you know which ones do not report to your personal credit report? Do you know the number one reason why unsecured loan and credit line applications are denied? Do you know which bureaus are pulled by each lender so you can properly plan the series of applications? Do you know how to pull the cash out of a business credit card without taking a cash advance so that you’ll actually pay 0% but have the cash in your bank account? These are just a few of the questions you should know how to answer. BFS, Inc. does not require any up-front fees so you’ll only pay our fees if we solve your problem.