Top 5 Business Funding Sources

#5 Business Loans

Okay typical funding again it’s going to depend on collateral. The pros are you don’t have to give up equity like a mortgage or HELOC, but again just like a mortgage or HELOC you are going to have to go through the “Full Doc” underwriting process. And you are going to want to secure their loan by some assets maybe it’s real estate maybe its not real estate it’s the accounts receivable in your business, okay.

#4 Business Cash Advance

Okay, typical funding is going to depend usually it’s tied to your merchant account. So if you have a credit card processing account that you are using, it’s going to depend on how much volume you are doing on the average per month. So the pros are it’s a little paperwork and it’s fast approval I mean basically if you are running a certain amount of charges every month and a certain amount of revenue on your credit card sales and it’s over a long period of time they are going to loan you money based on the volume of business that you are doing over a substantial period of time. So the cons are you firstly have to have a credit processing company and you have to have a history, you just set it up last month or 3 months ago, it’s not very credible, you have done it for year, 2 or 3 years and you can show a lender that very single month for the last couple of years or 3 years you are running credit cards and they see business coming that’s fine. Also it’s going to depend on how much you are doing and you want to go above 50 grand and you are running $10000 a month in sales it’s not going to you very good, because what you are doing every month is far less than what you are looking to borrow. So again the cons are going to be you are going to be limited by what you kind of sales volume you are doing, you know in your merchant account and also how long you have had your merchant account.

#3 Private & Hard Money

The funding usually starts at $25,000 and goes up. The pros are you don’t have to give up equity or control in your business and the investor or the company that is going to be giving you the money they just want a passive return. Okay the cons are you are going to have to pay high interest rates and points and they are underwriting you and they are underwriting the real estate, also they are not going to loan you more than 60% loan to value so if you are property that you are going to be using is collaterals worth a 100 grand, they are not going to loan you more than 60 so if you don’t have 40% equity which a lot of people don’t you are not going to get funding, so those are the cons.

#2 Friends & Family

Okay typical funding is going to be $50,000 to a 100 grand depending on how many friends and family you have and how much money they have. The pros are it’s convenient, easy access and familiarity and it’s quick funding with limited contracting, in some cases you make the rule you know informal writing agreements in some case it’s done in a handshake. The cons are you are limited in your sources of funding because unless you are married or you are you know your friends and family are the Rockefellers usually don’t have that much money. And things can get messy especially on Thanksgiving if you don’t pay the loan bank for whatever the reason, maybe it was not your fault, maybe you didn’t plan well, maybe the economy turned but you take money from friends and family and don’t pay them back it ruins relations around the Thanksgiving dinner table or the monthly or however often you get together with your friends and family.

#1 Business Credit

#1 small business funding option is can we have a drummer please Business Credit line, typical funding is $200,000 to $500,000 plus and in some case you get over a million. The pros are you basically have a “No Doc” approach so you don’t have to provide financial statements to prove what kind of income you have, many of us have income, we just can’t document it, okay. Funding is in the business name, not your social security number, these lines are revolving so you can use the money over and over again, what do I mean by that, you get a certain credit limit, you borrow up to that limit, you pay that back, you can reborrow those funds over and over again you don’t have to reapply for the loans each time you want to withdraw the money, you just get the line once you set it up and make sure you stay current on it. And from there, once you are paying it and keeping it current, you can redraw upon that money over and over again without having to apply for the money again.

So it’s a one time approval for an infinite amount of use, okay. The only con is you don’t know how to get these credit lines, because the banks have specific credit guidelines, a credit profile that they want to see that far and more than just I have a credit score of X and if you are below X you are going to get denied and if you are above X you are going to get approved. There is a complete and comprehensive set of credit or lending guidelines that the banks want you to hit and have and if you hit it you are going to get approved. And if you don’t hit all those points you are going to get denied. And the banks don’t tell you what it is, they just tell you to apply. And you kind of like you know just throwing stuff against the wall and you hope you know you stick. So most people don’t know this and we can help you with this, your business credit approved

So we are going to go through in the next 45 to 50 minutes here, okay and teach you what do the banks want you to have, what do you need to do, starting today to get approved for $200,000 to $500,000 in business credit lines. In our opinion, my opinion, our opinion at BCA Business Credit Approved my personal opinion of Jeremy Zigman Business Credit Lines is the best, because it gives you the most amount of control, you don’t have to give up equity, you don’t have to go through a “Full Doc” underwriting process, you don’t have to show tax returns, you don’t have to show financial statements and it’s not tied to any equity that you may or may not have, it’s unsecured full doc and the interest rates for many of these lines believe it or not are at 0% and we can keep them there for a long, long time.

So what business credit lines do for you is give you all the capital you will ever need because they are evolving, so once you use the money again you can pay it back and redraw upon it so it’s infinite amount of money, you don’t have to give up any equity, you don’t have to give up control, you don’t have to document your income it’s not tied to collateral, it’s really the end all be all in finance for a small business owner or for someone involved in real estate. So get your pens out, your pieces of paper sharpen those pencils get ready we are going to begin the training and by the end of the training today you are going to know everything you need to do to get $200,000 to $500,000 in unsecured revolving business credit lines in the next 90 days.

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