Understanding Unsecured Business Lines of Credit

Understanding Unsecured Business Lines of Credit

Here is response to an inquiry about Unsecured Business Lines of Credit:

1)You are looking to for a $300,000 line of credit. For unsecured lines of credit with no income or asset verification required - the maximum line size is $50,000. To achieve the amount you desire we would have to string together lines of credit from several different banks and credit companies. The EXACT amount is yet to be determined. It could fall short of the $300,000 maximum depending on what each bank approves and whether you accept all lines offered or you decline some.

The agreement you sign is a standard document that we use for ALL of our commercial and business financing clients. The 90 days time frame is also standard for our agreement as most commercial financing averages 60+ days to close and fund. Approvals for the individual lines of credit are much quicker and can start coming in as quickly as 10-14 days from submission.
Most are set up within 30 days. In this instance, we'd be happy to adjust the time frame to match more closely with the program you are applying for.

2) Lines of credit usually are open for up to 20 years. Usually a maximum of 10 years as a revolving line of credit. Then, at the end of the first 10 year term, the balance (if any) is converted to a 10 year amortized loan.
With multiple lines of credit, terms may vary, but this is the most typical set up.

3) The set up fee is a one time fee when the lines of credit are activated and made available to you. No other fees apply other than the agreed upon interest and any late payment fees, when applicable.

4) An initial $500-$600 is the only thing you pay now. The set up fees for each line of credit are paid at the time the lines of credit are activated and can be paid through the line of credit (so you actually start out with a small
balance) or can be paid separately by check or credit card.

5) The origination fee IS included in the bank fees of 7% - 10% on page 1.
That is NOT an additional amount.

6) WE do not issue you the lines of credit. We have over 130 commercial banks and credit card companies we work with. We know the guidelines for the ones that issue unsecured business lines of credit. We know you meet the basic guidelines for most of them however we do not know the exact amounts you will be approved for from each one at this time. Some actually require application fees be submitted with their applications so as a matter of protocol, we do not formally submit applications until a financing agreement has been signed and a deposit collected from a client. We do not collect deposits from clients that do not meet basic approval guidelines.

7) As mentioned earlier, the agreement you sign is a standard document that we use for ALL of our commercial and business financing clients. And there ARE documents required for all our financing programs, including this one.
For unsecured business lines of credit, the documentation is very limited.
Usually proof of identity (copy of drivers license), Proof of business ownership and status of business (articles of incorporation and confirmation your corp. / LLC is in good standing within the state it is registered), proof of business checking account (voided business check) and in some cases a few other items.

8) Lines of credit are revolving like a credit card. Interest only payments or 1% of balance monthly is how most work. No fixed amortization until after the initial 10 year period ends for most of them.

I hope this answers most of your questions but don't hesitate to call or email me directly if you are still unclear on any of these points or anything else that wasn't addressed in this email.


CommercialLendingPros.com
Your #1 Source for Commercial & Business Financing
loans@CommercialLendingPros.com
Office: 863-298-8900 eFax: 863-877-4456 Cell: 813-833-3132 http://CommercialLendingPros.com

Commercial Financing and Business Loan Answers

Q: I am looking for funding for a number of projects. Is your funding credit based? Is a substantial financial statement necessary?

A: Some of our programs are credit based, some are not. And some programs require full documentation of income and assets where a strong financial statement is beneficial or required and some do not require any verification of income or assets by the borrower(s).

We look at each property, business and/or individual borrower on a case-by-case basis. We look at what we have to work with and determine what the best options are from there.

If you’d like us to take a closer look at a specific funding scenario for you (or several), we’d be more than happy to identify what the specific funding options and requirements would be for those scenarios. We have 100% Commercial Loans still available.

We’re not bankers. So you won’t have to complete a 5 inch thick application package before some bank committee turns down your loan application.

We’re not Mortgage Brokers. So we don’t care if your existing business or the business you’re trying to buy has real estate or not.

Here at Commercial Capital, we ARE the ONLY ones you need to be talking to the next time you need money to expand your existing business or to purchase a new one.And with over $1 BILLION in business loans in our pipeline right now – we’re the single largest independent suppliers of money for business loans in the country. If the business you own or the business you’re buying is profitable – we’ve got the cash you need. Visit us today at http://CommercialLendingPros.com

We’ve got the money you need. Contact us: Call 863-298-8900 or 813-833-3132

Important Commercial Financing Update

Just in case you haven't checked with your lender or loan broker within the past few days, please be advised that any pending loan applications that are not within 48 hours of closing or have not been issued a FINAL APPROVAL & LOAN COMMITMENT – may now be DENIED!!

In response to recent changes in the securitization market and a lack of liquidity from the secondary market that has reduced capital availability – most lenders have recently (within the last few business days) changed their loan program offerings and underwriting guidelines.

• Minimum credit score requirements have been INCREASED
• Maximum loan to value ratios have been DECREASED
• Loans for certain property or business types (restaurants, gas stations, mortgage & real estate companies, etc.) may no longer be available.
• Maximum loan amounts have been lowered
• Underwriting for "no income verification" loans has been tightened
• Seller-held 2^nd mortgages may no longer be allowed
• If your lender was Interbay Funding, Silverhill Financial, Met West, Lehman Brothers, or any other Low Doc / Stated Income lender - your pre-approval is probably no longer valid.

So please contact your lender representative TODAY. Don't wait until the last minute. And if the worst has actually happened and your loan is no longer approved – please contact us immediately.

Since we offer portfolio loans that are not sold in the secondary market, we are not subject to fluctuations in the marketplace like many other lenders.

• We WILL still consider unique or Tier 3 & 4 property types
• We WILL allow seller held 2^nd mortgages on many of our loan programs
• We WILL allow credit scores as low as 600
• We WILL do loans up to 100% LTV (yes, even TODAY, with all the other lenders reducing their maximum loan to value ratios)
• We WILL still allow for NO INCOME VERIFICATION loans

So call us TODAY at 863-299-2929 or visit our web site at http://www.commerciallendingpros.com/ if your loan has been denied by another lender.

We make the TOUGH Loans look Easy!!

Commercial Capital, Ltd.
Your #1 Source for Commercial & Business Financing

Office: 863-298-8900 eFax: 863-877-4456 Cell: 813-833-3132

www.CommercialLendingPros.com

Commercial Real Estate: Safe Haven Investment

While economic uncertainty and the credit crunch have led to investor anxiety in many markets, commercial real estate remains comparatively attractive, according to Deloitte LLP’s recently released report, 2008 Real Estate Capital Markets Industry Outlook.

"In prior boom cycles, commercial real estate has responded by overbuilding. The industry has clearly learned its lesson because this time commercial real estate is enduring a credit crunch, not a crisis, partially because it resisted this urge,” said Dennis Yeskey of Deloitte’s Real Estate Capital Markets practice.

"No doubt the industry is in a strong position to withstand a recession, should one occur, and commercial real estate remains a viable investment option for those seeking to diversify and insulate their portfolios from market volatility.”

The Deloitte report discloses that commercial real estate (CRE) has "evolved from an asset class characterized by steadfast returns and low volatility to a ‘Best in Show’ asset class providing investors with both high yield and high stability . . .
"Despite several stock market run-ups in the last few years, CRE has shined, outpacing stocks and bonds on a 1-year, 5-year and 10-year basis.”

According to the report from Deloitte’s Real Estate Group, which has offices across the U.S. and in Europe and Asia, CRE "has been a clear winner in terms of performance and stability, in addition to offering diversification for investors.

"Early in 2007, the story that appeared to be developing was the emergence of asset class parity, as rebounding stocks as well as private equity and hedge funds emerged as more significant competition. During the first three quarters of 2007, however, private CRE returns held steady as stocks endured significant and repeated volatility.”

The report makes a number of positive observations regarding commercial real estate, including:

• Over the 3-year period from 2004 to 2006, core private commercial real estate had annual returns of more than 17 percent, while the S&P had an average annual return of 10.44 percent over that period, NASDAQ returned less than 7 percent, and bonds returned less than 5 percent.
• Due to the weak U.S. dollar, commercial real estate in the U.S. is relatively attractive to foreign investors compared to other international markets.
• Overall vacancies in commercial real estate remains stable, and rent continues to increase.
  

The "Bottom Line,” according to the report: "Going forward, investors would do well to stop comparing commercial real estate returns to the previous few years’ performance, and to take a closer look at how these returns fit into the big picture.

". . . when compared to other investment categories (stocks, bonds, etc.), commercial real estate remains an attractive investment vehicle due to its stability and opportunity for diversification.”

Whatever your need, NOBODY has more ways than we do to help you minimize your cash investment when buying a new business or commercial property. When you’re ready to discuss in detail how we can help you structure your next acquisition for maximum leverage and return on investment, just give use a call or send us an email. You will find us helpful, knowledgeable and ready to serve!

863-298-8900 or 813-833-3132

Website: http://commerciallendingpros.com/
We offer many types of Business and Commercial Loans:

• 100% Financing
• Business Loans
• Commercial Loans
• Mortgage Advice
• Business Acquisition
• Franchise Purchase
• Start-Up Funding
• Office Condos Loans
• Multi-Family Refinance
• Gas Station Purchase
• Bridge Loans

Website: http://www.commerciallendingpros.com/
Your #1 Source For Commercial & Business Financing

Experts in Business Loans, Commercial Loans and 100% financing

We are experts in business loans, commercial loans, 100% financing, small business loans and offer many other financing programs. We offer low rates and some the best terms in the market today.

We've got the money you need.

Visit us today at http://commerciallendingpros.com/

Contact us: Call 863-298-8900 or 813-833-3132