This
is like a revolving account, usually with low initial
interest, floating index (Wall Street Prime) plus margin
from 1% to 4%, according to the loan risk, based on the
business and directors (with ownership of 20% or more)
financial history, credit records, income and assets.
Closing can be done within 72 hours of approval and after
all conditions have been met for up to $100,000 and up to
5 business days for anything over that amount. This line
of credit may be secured with or without collateral,
provided by the S.B.A, or from the borrower.
Up
to $ 50,000 S.I.V.A. (Stated Income, Verified Assets) No
docs. Stated Income means that you do not have to show
proof, you merely have to say that you earn a certain
amount.
Requirements:
Application business and personal, assets supporting
documents from officers owning more than 20% of the
company Copy of the SS, DL, Citizenship, resident card,
passport, visa. Credit report authorization.
Minimum
middle FICO score 650
At
least 24 months of credit history
Five-credit
lines and at least two credit lines of over $5,000.
Established business for two years or more, articles and
bylaw.
Statement
about the purpose, benefit and repayment of the loan.
Up
to $100,000 V.I.V.A. (Verified Income, Verified Assets)
Low doc.
·
Requirements: Same above requirements
·
Income details for one year.
·
Income tax
·
Profit and loss
·
Business & personal bank statements.
Up
to $ 500,000 V.I.V.A. Full doc.
·
Requirements: Same above requirements, plus:
·
Income details for three years.
·
Income Tax
·
Profit and Loss,
·
Business & personal bank statements.
Additional
collateral
Real
estate property, developed land that is ready for use (no
raw or unimproved land), inventory, equipment, machinery,
stocks, bonds, bank credit or guaranty letter, or others,
can be accepted to secure the business line of credit, and
of course this is going to improve the potential
acceptance of the loan, and receive better conditions.
Criteria
1.
Total asset must be over 1.5 times that of the loan
amount.
·
Example: For a $100,000 loan, assets should be at least
$150,000.
2.
The loan cannot exceed 25% of the gross income of the
business.
·
Example: For a $100,000 loan, gross income must be at
least $400,000.
3.
Deb to income should not exceed 50% of current debt and
the new loan payment. In other words. If you have $10,000
in monthly income your total debt and payments on the new
loan should not exceed $5,000. Don't worry if you can't
figure it out, we will tell you the maximum loan amount.
4.
For general corporations we only need to use the business
assets and income.
5.
For S-Corps or sole proprietors; personal and business
income are combined.
Costs
and Fees
Initial
Loan Packaging Fees
There
is no application fee. We will review your application
free of charge.
The
packaging fee for a $50,000 line of credit is $500.
The
packaging fee for a line of credit over $50,000 to
$100,000 is $1,000.
The
packaging fee for a line of credit over $100,000 to
$500,000 is $1,500.
Success
Fee
The
Success Fee is from 5% to 10% of loan amount. To be paid
upon closing.
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