Learn how to receive a $100.000 No Documentation Business Line of Credit
Obtaining capital in this “tight money market” is easier said than done these days. As more and more banks go belly up, lenders are increasingly making it more difficult to obtain capital. I can demonstrate how you can get unsecured business loans with no traditionally required financial documentation. There won’t be any financial documentation needed but keep in mind that you will need an easy business plan.
One must be certain to never use a lender that charges “upfront fees” or “application fees”.” You shouldn’t have to pay anything to apply for business capital. Fees are mostly charge from the “backend” by lenders. (proceeds of the line of credit). Keep in mind that most unsecured “no doc” business loans will come with a higher price tag than one that is secured and is “full doc” You will need: bank, statement,business tax returns and a p&L statement for the last 3 years.. Reason is pretty simple; funding unsecured, no financial business loans poses a higher risk to the lender. As long as the costs are reasonable and only paid when the loan actually funds or is approved, then a no documentation business loan is the way to go!
Additionally, these loans should not come with any kind of pre-payment penalty. And at anytime, you are free to pay the loan off the loan, without any penalty! Don’t waste your time applying for a loan that has pre-payment penalties. With an abundance of lending choices available, having a pre-payment penalty would be highly unlikely.
No documentation business loans and lines of credit rely heavily on credit, assets and years of experience. To be approved for a $100,000 business line of credit, lenders usually require a minimum 680 credit score. (most business lenders use the Experian credit score), 2 years in business and home ownership. Most lender statistics are biased toward homeowners, and are more likely to lend capital if you are indeed a homeowner, even though these loans are actually unsecured. A book of checks will be provided to you upon receiving approval. By using these checks, you can acquire funds for any need or want. Best part is that you only pay interest on the outstanding balance – not the entire loan amount.
You are only required to pay monthly payments of interest and a small amount of principal helping to keep the payment affordable. With certain business lines of credit, you pay an interest only portion for a set period of time, usally three to five years. This length of time is known in the industry as the “draw” period. During this time you can access your credit line and write out checks. After this period, the loan typically turns to a 5-year to 7-year term involving payment of both principal and interest payments.
The interest rates are very competitive since it’s a credit based type of financing. Typically, rates are only several percentage points over Prime rate reported by The Wall Street Journal: typically from Prime rate plus one or two percentage points.5%, making this an inexpensive way to borrow business capital.
What do you do if you have no home ownership and the business has been around fewer than two years? You will have a hard time finding $100,000. Aim for between fifteen and fifty thousand dollars. There are many SBA (Small Business Administration) Search for loans that assist new business owners that do not require hardly any assets.
A good insider trick to send several applications at the same time, this way you can be approved with multiple lenders before the loans show up on your credit report. If you utilize this technique you can be almost certain that you will get $100,000 to $500,000.00.