It was a 2-hour lunch that started my journey to find a better solution for my friends.
What was the beef? They all had small business loans and were very tired of paying daily and a few weekly ACH payments at high rates and short terms. Most of them were 3 months to 21 month paybacks. Ouch!
I couldn’t help them as I offered similar funding for their credit requirements. So, like most of the services we offer I started my journey to find the best terms, best rates, and monthly payments.
The other problem was two were startups, good luck with that. So, that started the second part of my journey-finding reasonable money and terms for startups, of which most have limited or no business credit to offer.
Generally, businesses need to be in business for at least 6 months to qualify for any type of finance, even our SBA packages eliminate most business funding under 2 years. Banks require 2 years at least with positive credit and profitable business. Let alone the paperwork, fees, waiting…waiting…waiting
And like most small business (any business) make the same mistake. They apply at one bank, get turned down, then apply to another, and another. Well, they see you shopping, and every time someone pulls your credit it gives you a “ding” of which I wrote in a previous blog about entering the “ding” zone. So, don’t be a “dinger”, do your homework, check your credit, fix your credit, explain anything not so nice, BEFORE you apply for any loan.
The other problem is what do have to offer? What can you really afford? And how long will it take me to pay it back?
First step: We created on our web, calculators and a financial statement. This lets everyone know what you have to offer (including yourself). Nobody likes surprises, especially lenders.
Second step: created applications with our lending partners that our easy and do not pull your credit (soft pull) to see what you can qualify for, I call it the “free DING zone”. You could take months to find what we can do in minutes.
Final step: Find the lenders who can actually do these things.
So we did…Our goal is always to help business and individuals obtain the best financial services available.
Frank J. Eberhart, CEP® RFC® Author