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An idea to consider for those of you looking for funding
MattTurpin
subscriber Posts: 22
I didn`t get a loan when I went to my personal bank - he wanted 25% equity and collateral, but I did get a credit check. I didn`t get a loan when I went to a lender off the internet - he wanted three years credit card use history, and I have none. I did get a credit check. There are thousands of lenders out there, and the odds are one of them can work for almost anyone. However, every attempt makes every subsequent attempt less likely, because the financial geniuses that set up the three credit bureaus decided that when a party verifies my credit, I`m less creditworthy. I disagree with this, as a side note, but it is what it is.
I used a loan broker to do my financing. In particular, Unsecured Solutions. Now, they promised me a number between 25,000 and 75,000, towards the high end, and I`m banking on it. I consider my financing a success. The fee isn`t cheap. In my case there were two options - 995.00 straight up, or 12% once I get the loan. The latter is for credit scores above say 720 and I qualified, so that`s what I did. They wanted a 500.00 deposit, but waived it for me when I said it would mean getting back to them in a month. Fair enough. They only get their 12% if I get my 25-75,000. I only need 20,000 to physically start my company, so this is kosher. The excess is for security and for luxuries like more flavor-decorations and whatnot.The perk of this is, I got a single credit check by Unsecured Solutions, and they use that to apply for up to 2,000 loans for me. If it took all 2,000 attempts for me to get a loan personally, I`d have negative credit I`m sure. When I get the actual cash, I`ll tell you how much, and I`ll be happy to report the specifics. That`s the information I initially came here for. I needed funding. I didn`t have much to offer. If I did, I wouldn`t need the funding. I wanted to know what people like me could do for funding. If Unsecured Solutions pulls through for me, I`ll fill you all in and all you entrepreneurs who can start for less than 100,000 might be in luck.I`m nervous as hell, though. I hate contracts. I hate risk (ironic I know). I`m not a brave guy. But, nothing risked, nothing gained, so I`m happy to be the sacrificial lamb in a less talked about funding possibility. I hope it works. They get rated highly all over and have an A- BBB rating for fulfilling their word, and they have physical business locations in several states, having been around for years. I`m confident in the legitimacy of the company. I`ll keep you posted.PS: Does anyone know why somebody seeing how creditworthy I am makes me less creditworthy? I agree 100% that missed/late payments should dock the score some. I agree that a long trackrecord of timely repaid loans should raise it. That`s credit after all. However, my trustworthiness doesn`t change based on strangers viewing the report. I`m trustworthy now. If my trustworthiness was 5 stars two seconds ago, and unknown to me, a lender just looked and saw how trustworthy I am, I`m not going to default on a payment out of spite. It`s the only part of the issue I don`t understand or agree with.MattTurpin7/2/2009 4:30 PM
I used a loan broker to do my financing. In particular, Unsecured Solutions. Now, they promised me a number between 25,000 and 75,000, towards the high end, and I`m banking on it. I consider my financing a success. The fee isn`t cheap. In my case there were two options - 995.00 straight up, or 12% once I get the loan. The latter is for credit scores above say 720 and I qualified, so that`s what I did. They wanted a 500.00 deposit, but waived it for me when I said it would mean getting back to them in a month. Fair enough. They only get their 12% if I get my 25-75,000. I only need 20,000 to physically start my company, so this is kosher. The excess is for security and for luxuries like more flavor-decorations and whatnot.The perk of this is, I got a single credit check by Unsecured Solutions, and they use that to apply for up to 2,000 loans for me. If it took all 2,000 attempts for me to get a loan personally, I`d have negative credit I`m sure. When I get the actual cash, I`ll tell you how much, and I`ll be happy to report the specifics. That`s the information I initially came here for. I needed funding. I didn`t have much to offer. If I did, I wouldn`t need the funding. I wanted to know what people like me could do for funding. If Unsecured Solutions pulls through for me, I`ll fill you all in and all you entrepreneurs who can start for less than 100,000 might be in luck.I`m nervous as hell, though. I hate contracts. I hate risk (ironic I know). I`m not a brave guy. But, nothing risked, nothing gained, so I`m happy to be the sacrificial lamb in a less talked about funding possibility. I hope it works. They get rated highly all over and have an A- BBB rating for fulfilling their word, and they have physical business locations in several states, having been around for years. I`m confident in the legitimacy of the company. I`ll keep you posted.PS: Does anyone know why somebody seeing how creditworthy I am makes me less creditworthy? I agree 100% that missed/late payments should dock the score some. I agree that a long trackrecord of timely repaid loans should raise it. That`s credit after all. However, my trustworthiness doesn`t change based on strangers viewing the report. I`m trustworthy now. If my trustworthiness was 5 stars two seconds ago, and unknown to me, a lender just looked and saw how trustworthy I am, I`m not going to default on a payment out of spite. It`s the only part of the issue I don`t understand or agree with.MattTurpin7/2/2009 4:30 PM
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A) I wouldn`t receive multiple credit checks. In fact, they had me send a copy of my credit report which I checked myself, so it counted as a soft inquiry, and I wasn`t penalized.B) That they won`t get paid unless they secure a loan.C) That I can decline unsuitable loan offers.D) That they have special negotiations with many of their 2,000 lenders allowing loan programs that I couldn`t enter into myself. This is relevant right now, for example, as Bank of America is one of the first four banks they`re trying. Bank of America has a special contract with Unsecured Solutions. Each of the four banks so far are reputable as much as any bank can be after all the illegal activities they were swimming in a year ago. I have as little reason to trust a bank as I do a broker. At least the broker has a good list of institutions and the connections to make things happen.Fortunately, I have a backup plan if this fails. I only need 20% equity to secure a loan with my bank - maybe 25%. If I only need 25,000, I can save the equity in 5 months. That, or I could just ask for a one week loan from family, to say "Hey bank, I have 25%, see?" and then give it back. Ask for say, 25,000 with 5k on the table. Then give it back. I only prefer unsecured solutions for one reason - unsecured. I don`t own collateral. I`m not risking my friends and family. The only fail in this project should be me.MattTurpin7/7/2009 12:55 AM
EDIT: I did have my credit checked today, by Bank of America. Something tells me my credit score is in for a long hard ride, but that`s okay. I knew going into this cafe venture that I would be going through a whole lot of bad before I saw any good. This is an adventure, and I`m the hero. I`m supposed to get punched in the face a few times before I win in the end. If it was easy, everyone would do it.MattTurpin7/12/2009 4:27 AM