humm we recently got a loan from Capital One and they will go as high as 75% of your gross sales depending on exisiting debt. One other major factor that we didnt realize is "risk" factor for the bank. How risky is it for the bank to loan YOU money. Depending on the business risks can be higher. We were promised x amount of money when it came time to actually close on the loan the bank decided to reduce that money by almost half because they felt the risk factor was simply too high.
For the 10K mark your almost better doing a personal loan.
One more item I`d like to add. Accounting, yep you got it, we`ve all heard that there are two "books" one thats real and well one that we pay taxes on. Now if your planning on growing your business, it`s vital you add all income and simply pay the bill. Why because as banker said, banks will look at your tax returns and you want that number for gross income as high as possible to get the largest loan avilable to you. If your accountant is finding ways to show your making less or grossing less, that may be great today but down the road when you need a loan, you might be screwed.ToddF2007-8-24 15:1:59
Thanks for the comments.
ToddF, my comments were regarding major retail banks. Your CapitalOne loan is suprising...75% is a lot of risk. I`ve called CapitalOne previously to get a feel for their loans, but the customers service reps were not able to answer some basic questions. For example, "What is the range of the interest you charge for a business?". I`ve heard good things about CapitalOne, especially their funding speed. Would you mind sharing the name of your contact there?
Thanks for the comment mattsind.
I don`t know enough about your situation to give you a complete answer, but feel free to drop me a line.
Its always good to ask questions and be completely upfront about your business and personal finances before applying because a decline does affect your credit. Any good banker should be tell you your chances of approval before even running your credit.
I`m curious if you applied for an equipment leased loan (secured loan) or a regular business loan (unsecured). Every business writes of expenses, so a decline for this reason may simply mean your business shows no profit. Ask for details regarding your declines and recommendations too.banker2007-8-26 18:53:32
Yeah I`ll get it to you in a day or so, my wife handles that side of the business. FYI. this is not the first loan we`ve had from them so I know that does make a difference.
Thanks for the comment mattsind.I don`t know enough about your situation to give you a complete answer, but feel free to drop me a line.Its always good to ask questions and be completely upfront about your business and personal finances before applying because a decline does affect your credit. Any good banker should be tell you your chances of approval before even running your credit. I`m curious if you applied for an equipment leased loan (secured loan) or a regular business loan (unsecured). Every business writes of expenses, so a decline for this reason may simply mean your business shows no profit. Ask for details regarding your declines and recommendations too.
First off, I want to thank you for responding to my post.
You`ve enlightened me on something, while causing me concern. I didn`t realize that each time you submit for a loan at a lending institution and it`s declined that it affects your credit rating. Is your credit rating affected negatively?
I started off with secured and then tried unsecured loans. I denied for both. My business is just not making enough of an income to be considered a worthy investment.
That`s my analogy of the situation anyway.
Thanks again for the advice.
In the future, I intend to put your advice to practice before actually submitting my loan application to a lending institution.
Yeah I`ll get it to you in a day or so, my wife handles that side of the business. FYI. this is not the first loan we`ve had from them so I know that does make a difference.
Hi ToddF,
I`m wondering if your post is intended for me?
Thanks for the posts. They had a lot of nice info in them.
Thought I would ditto your sentiments. I find it is indeed true. This forum is a wealth of information for an business owner. In my opinion, any level of business would find some relevant and useful information in this forum. I know, I have.
I found your post very interesting. I am wondering how you would guide me in my particular situation.
I have great credit. I’ve paid off previous bills, and I’m paying my current bills on time. But because of the current level of actual activity in my business, I want to expand my services.
This expansion has the potential to increase my bottom line. But this expansion requires additional equipment and money that my business does not have.
Because I placed so much faith in my ‘great’ credit, I approached several banks and applied for a loan with a business line of credit for $350,000.
I was informed, as a matter of fact, that because I am writing off all my expenses to the bottom line of my business, I did not qualify for this type of loan.
The banks I approached were basically telling me that my business is not making enough income.
What existing small business loan resources cater to business owners in my position?
I am desperately trying to keep pace with a highly competitive industry.
At one point, I once believed that great credit was all that
was needed too, when it comes to loans and lending money or assets of any
kind. This is really not the case. My experiences with banks and various lending institutions
taught me that the business’ bottom line is a fundamental issue considered by
today’s financial organizations as part of their loan approving process. They need to be assured that you make enough
money after your expenses to cover their loan payments.Even though I had a great credit rating, I was still just
not making enough money to secure the type of loan I needed, especially when
these banks considered the amount I was requesting and saw that after I paid my
expenses, there was not much finance left.However, I did come across an ideal resource, www.thesnaploan.com. This website seems to be millenniums ahead of
its time, when it comes to current lending practices. I was approved for a revolving line of credit
that I can pay off and use again if I so decided. I really love this option. This website is a good place to start if you
need an unsecured or secured loan, and you’ve been having difficulties
elsewhere.
Thanks, Markcan, I have to admit that there are similarities in our situation. I`m hoping that when I contact www.thesnaploan.com I will be as successful as you were.
I`ll keep you posted on my progress.
"I received financing through usunsecured dotcom and had no problems. My old bank had me in the dark as to when they would close and offered me horrible terms. I also got a free hawaiian vacation."
I personally think that these days, banks and other lenders understand the general landscape of how and why people borrow money, no matter what kind of situation a person may be in. Say if you're looking for car financing but don't have credit history or bad credit history, there are still options available you know. Granted that terms may not be as wonderful, but there ARE options!
Be sure to also check out your local and regional economic development office. They can often offer 100% loan to value debt, take second position against collateral behind your bank or make other offers that can help you secure lower cost financing.
banker
subscriber Posts: 2
Comments
For the 10K mark your almost better doing a personal loan.
One more item I`d like to add. Accounting, yep you got it, we`ve all heard that there are two "books" one thats real and well one that we pay taxes on. Now if your planning on growing your business, it`s vital you add all income and simply pay the bill. Why because as banker said, banks will look at your tax returns and you want that number for gross income as high as possible to get the largest loan avilable to you. If your accountant is finding ways to show your making less or grossing less, that may be great today but down the road when you need a loan, you might be screwed.ToddF2007-8-24 15:1:59
ToddF, my comments were regarding major retail banks. Your CapitalOne loan is suprising...75% is a lot of risk. I`ve called CapitalOne previously to get a feel for their loans, but the customers service reps were not able to answer some basic questions. For example, "What is the range of the interest you charge for a business?". I`ve heard good things about CapitalOne, especially their funding speed. Would you mind sharing the name of your contact there?
I don`t know enough about your situation to give you a complete answer, but feel free to drop me a line.
Its always good to ask questions and be completely upfront about your business and personal finances before applying because a decline does affect your credit. Any good banker should be tell you your chances of approval before even running your credit.
I`m curious if you applied for an equipment leased loan (secured loan) or a regular business loan (unsecured). Every business writes of expenses, so a decline for this reason may simply mean your business shows no profit. Ask for details regarding your declines and recommendations too.banker2007-8-26 18:53:32
Thanks for the comment mattsind.I don`t know enough about your situation to give you a complete answer, but feel free to drop me a line.Its always good to ask questions and be completely upfront about your business and personal finances before applying because a decline does affect your credit. Any good banker should be tell you your chances of approval before even running your credit. I`m curious if you applied for an equipment leased loan (secured loan) or a regular business loan (unsecured). Every business writes of expenses, so a decline for this reason may simply mean your business shows no profit. Ask for details regarding your declines and recommendations too.
First off, I want to thank you for responding to my post.
You`ve enlightened me on something, while causing me concern. I didn`t realize that each time you submit for a loan at a lending institution and it`s declined that it affects your credit rating. Is your credit rating affected negatively?
I started off with secured and then tried unsecured loans. I denied for both. My business is just not making enough of an income to be considered a worthy investment.
That`s my analogy of the situation anyway.
Thanks again for the advice.
In the future, I intend to put your advice to practice before actually submitting my loan application to a lending institution.
Hi ToddF,
I`m wondering if your post is intended for me?
Here are two postings from my blog, Show Me the Money, that may offer insight into how to make a good funding request presentation.What Will A Banker Ask Me?Am I Bankworthy?
Thank you very much for the suggestion. I will have a look.
Thought I would ditto your sentiments. I find it is indeed true. This forum is a wealth of information for an business owner. In my opinion, any level of business would find some relevant and useful information in this forum. I know, I have.
I found your post very interesting. I am wondering how you would guide me in my particular situation.
I have great credit. I’ve paid off previous bills, and I’m paying my current bills on time. But because of the current level of actual activity in my business, I want to expand my services.
This expansion has the potential to increase my bottom line. But this expansion requires additional equipment and money that my business does not have.
Because I placed so much faith in my ‘great’ credit, I approached several banks and applied for a loan with a business line of credit for $350,000.
I was informed, as a matter of fact, that because I am writing off all my expenses to the bottom line of my business, I did not qualify for this type of loan.
The banks I approached were basically telling me that my business is not making enough income.
What existing small business loan resources cater to business owners in my position?
I am desperately trying to keep pace with a highly competitive industry.
At one point, I once believed that great credit was all that
was needed too, when it comes to loans and lending money or assets of any
kind. This is really not the case. My experiences with banks and various lending institutions
taught me that the business’ bottom line is a fundamental issue considered by
today’s financial organizations as part of their loan approving process. They need to be assured that you make enough
money after your expenses to cover their loan payments.Even though I had a great credit rating, I was still just
not making enough money to secure the type of loan I needed, especially when
these banks considered the amount I was requesting and saw that after I paid my
expenses, there was not much finance left.However, I did come across an ideal resource, www.thesnaploan.com. This website seems to be millenniums ahead of
its time, when it comes to current lending practices. I was approved for a revolving line of credit
that I can pay off and use again if I so decided. I really love this option. This website is a good place to start if you
need an unsecured or secured loan, and you’ve been having difficulties
elsewhere.
Thanks, Markcan, I have to admit that there are similarities in our situation. I`m hoping that when I contact www.thesnaploan.com I will be as successful as you were.
I`ll keep you posted on my progress.