Commercial Loans Blog

New Unsecured Business Loan Program

Posted by George Blackburne on Fri, Jul 12, 2013

If your commercial loan client owns a business - even if his credit is flawed and he owns no commercial real estate - he might be able to borrow between $10,000 and $500,000 based solely on his signature!  Some of the uses can be to bolster liquidity, to pay for third party costs - like appraisals, environmental's, etc. - or for any other need.

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Using this program, you can get your business-owner-clients money within just three to five business days without any collateral.  There are no up-front fees to get this loan.

There is no requirement to own commercial real estate either.  Your borrower could just be renting commercial space.  There are no mortgage or UCC costs or liens.   It is strictly a signature loan.  Credit can be as low as a 500 FICO to qualify.

The key issue with this program is that the borrower must own a business.  He can borrow up to 10% of his annual sales / revenue.

Please note, however, that the type of business must be one where a little bit of revenue comes in to the company almost every day.  For example, a beauty salon or a mini-mart would qualify.  An oil change or auto repair shop should qualify.  A manufacturing company with shipments going out almost every day would qualify.  On the other hand, a real estate brokerage (or mortgage brokerage) company would not qualify because their income is commission-based (its hit-or-miss).

Why is the frequency of fresh income so important?  These unsecured business loans are obviously very high-risk loans.  The interest rate is priced accordingly, and the repayment schedule call for very small, daily payments that are automatically deducted.  There needs to be fresh income coming in very frequently to the borrower's business account to ensure there is enough available dough to make the payments.

A buddy of mine used this program to get his client a quick $50,000 when his client's credit deteriorated so badly that his SBA loan was turned down.

This program was also used recently to raise the money for third party reports.  In this case, the borrower owned commercial real estate, and he was trying to borrow almost $500,000 secured by his industrial building.  The problem was that the borrower's cash flow was so overstretched at the the moment that the borrower couldn't come up with the $6,000 he needed for the appraisal and toxic report.  This borrower was able to use this quick, unsecured commercial loan program to borrow the money necessary to eventually obtain a $500,000 commercial real estate loan!

The paperwork requirements are pretty easy too - just a 1003 loan application, a credit report, 12 month's worth of bank statements for the company, and last year's company tax returns.  As I mentioned earlier, there are no application fees, and your client will have an answer within just 3 to 5 days.

Broker's can charge up to two points, which is a really sweet deal considering you'll have a yes or a no within just three to five days.  Remember, these loans are unsecured, so there is no waiting for third party reports.  Bing-bang-boom ... and you'll have a nice commission check in your pocket.

Got a potential deal?  Please send me an email at george@blackburne.com with your contact information and a brief description of the deal.  In the subject line, please type, "George's Special Unsecured Business Loan."  Thanks!

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Topics: Unsecured business loans