FAQ Capital, Collateral & Scores

FAQ Capital, Collateral & Scores

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.