Does
MegaLoanFunding.com also offer other types of commercial financing?
Yes we also
offer commercial loans and joint venture financing for any type and size of
commercial real estate or business transaction. If you have collateral and need
the funds in a hurry, then
we can help with a Business Speed Loan up to
$20M.
All of our products can be
viewed on this website.
Is
a business line of credit the same as a loan?
A business line of
credit facility is a perpetual and revolving credit line which works just
like a giant credit card except for the fact that it is cheaper and has the
added benefit of check writing access. When you get a loan, you receive one
large sum and pay interest on the whole amount. In contrast, with a line of
credit you only use and pay interest on the amount of funds that you need and
use. Also with a loan, you cannot pay part or all of the money back when you
want to. Sometimes you even have to pay a prepayment penalty if you pay the
money back too quickly. A line of credit allows you to use and pay back any
amount with out penalty. Also there are no minimum or maximum balance
requirements and most lines usually never convert into term loans.
How
is interest charged for a line of credit?
A business line of
credit requires variable interest-only payments. Most lenders charge a rate
equivalent to the prime rate (which fluctuates) plus a certain number of
percentage points. The rates, which are at the discretion of the lenders,
usually range between prime –1 and prime +5 or higher, with the average being
prime +2.
What
is the credit limit amount that I can get approved for?
The credit limit that we can help you achieve depends on your current personal
credit, how long you have been in business and your past and expected sales
activity.
Does
MegaLoanFunding.com charge up-front fees?
We
do not charge any up-front fees. We only get paid for the actual financing that
your business is approved for. Our fees are due within seven days after you are
able to access your approved funds.
How is
your fee calculated and how and when do I pay it?
Our
consulting fee is a % of the total amount of each approved line of credit and is
payable by you within seven days after a line of credit has been approved and
you are able to access the funds. Our consulting agreement with you will
specify our fee which is usually 5%.
What
happens if I am approved but don’t like the lenders terms or interest rate?
If you do
not like the terms and interest rate of a line of credit that a lender approves
you for, then you can decline and will not be charged a fee.
Are
your unsecured lines of credit really unsecured and what is meant by that?
Our unsecured lines of
credit require no collateral, which means that none of your assets, including
your home or any other property, business or personal assets, need to be
pledged.
When will my personal
credit report be ordered?
To get the process started, we
will have to examine your own personal credit report. To reduce the number of
enquiries on your report, you will be asked to go on-line to order your
own PERSONAL CREDIT REPORTS
which must be made
available to our office via your PROFILE APPLICATION to us. Your personal credit report
enquiry will not show up on your credit report which increases your chances of
success when applying to lenders.
Your credit reports,
together with your profile, will allow us to analyze your situation. We will
then where ever possible, show it to the lenders that we feel will approve your application. Those
lenders who respond positively will then each place their own individual orders
for your credit reports when they process your application. This strategy avoids the
main problem that applicants experience when trying to do this on their own
which is, applying to the wrong lenders, the wrong way, and then getting too
many inquiries on their credit reports which destroys their chances of being
approved by any other lenders.
What is the cost for
ordering my personal credit report?
Your report will be free for a 7 day trial membership with the vendor
CreditCheckTotal.com and will be available for viewing for 30 days. If you don't
cancel your membership within this 7-day trial period, you will be billed $29.95
for each month that you continue your membership.
When will I have to provide my Social Security Number
and Bank Account Number?
You will only have to
provide your SS# and bank account number after having received our lender
opinions and then having decided to move forward with the formal processing of
your application by the lenders that we have selected for you.
What FICO credit score
do I need to qualify?
Our perfect applicant
and the one that usually gets the most lines and highest credit limits, has a credit score of 700 or higher. Your opportunities are reduced if you
have a lower score, all the way down to a small line of credit that is available
if your score is only 680. Currently we do not have anything available for
applicants with credit scores below 680.
Can
you advise me on how to improve my FICO score before applying?
To start the process, you need to order
your own personal credit report and to make it
available to us so that we can examine it before any applications are made to
any of our lenders. If your credit report reveals problems such as
late payments, judgments,
charge offs, collections etc, they must be rectified before starting. To achieve
this, we will refer you to our
affiliated Credit Restoration Service.
See
the full details about our affiliated credit restoration
service and enroll
on-line.
To receive recommendations about what to do to increase your FICO credit
score and improve your personal credit profile so that you will be more successful when applying,
please check out our excellent
Personal Credit Profile Building
Service.
Must I also order my
business credit report?
If
we feel it is necessary, we will ask you to also pull your business credit
report from either
http://www.dnb.com/us/
or
http://www.experian.com/business/bcr.html
and to make it available to us
so that we can examine it before any applications are made to any of our
lenders.
What
if I have derogatory items on my personal credit report?
To be successful
immediately, your
credit report should not reflect derogatory items.
If your credit report reveals problems
such as late
payments, judgments, charge offs, collections etc, they must be rectified before
starting. To achieve this, we will refer you to
our affiliated Credit Restoration Service. See
the full details about our affiliated credit restoration
service and enroll
on-line. Restoring
your credit
might take 4 to six weeks or even longer to accomplish.
Also see our
solutions for credit challenged applicants.
I
have heard that my high revolving debt balances could disqualify me. Is this
true?
Revolving debt is usually in the form of personal credit
cards and personal lines of credit (like home equity
lines of credit). Being maxed out on revolving personal
debt is an instant disqualifier when applying for
unsecured financing. Reducing revolving personal debt to
acceptable levels can often raise a FICO score by as
much as 50 points or more thereby instantly qualifying
you. We have a number of plans to
eliminating high revolving debt balances.See
our
solutions for credit challenged applicants.
Also please see solutions offered
by our
Personal Credit Profile Building
Service.
What if I have a high debt to income ratio?
Lenders need to see that an applicant will have sufficient
funds available to be able to make the payments for new financing. They
determine this by using a debt to income ratio, the acceptance of which is
different for each lender.
Please see solutions offered for this problem by our
Personal Credit Profile Building
Service.
What
documents do I need to show when applying?
Firstly you need the necessary documents to
show that your business is state registered
and licensed and you will be required to complete the lender's application form.
You will also
be required to show your last two year’s business and
personal financial statements and tax returns.
How
much income should my business be achieving in order to qualify?
Any reasonable amount
of business income will qualify for a line of credit but the limits on the lines
are usually calculated as a % of income. Therefore a business with a low income
will only qualify for small lines of credit. Most lenders will approve a limit
of between 15% to 30% of your annual business income. This is why we apply to
more than one lender so that collectively, the lines that you qualify for will
amount to a significant amount / limit.
What is the highest
credit limit that I can get?
Full doc applicants who
can show tax returns and financial statements, have reasonable business income, have been in business for at least two
years, have high credit scores and who’s credit reports do not reflect slow
payment histories, judgments, repossessions or bankruptcies, are often
successful in obtaining unsecured lines of credit of as much as $250 000 and up
to 1
000 000 if able to provide collateral.
What
if my business was established less than two years ago, can I still be
successful?
No, the minimum requirement is 2 years.
Do I need to have an established business credit profile in order to be
successful?
An established business credit profile is not a pre requisite for success when
applying for business credit lines, how ever if established, it will help a lot.
Is my pre-qualification a
guarantee of financing?
No. Our pre-qualification means
that your credit report and profile has the necessary requirements for us to
proceed with our service with a reasonable expectation of success.
Who
guarantees the repayment of the lines of credit?
Lenders require
personal repayment guarantees from between 25% to 85% of the people who own the
business.
Will
the financing that I qualify for show up on my credit report?
Business lines of
credit do not show up on personal credit reports unless payment defaults occur.
Instead they report to the business’s credit report. However, we are not in
control of any of the lender businesses or their policy making which can change
with out us knowing. Therefore you must confirm this before accepting financing
from any lender.
What
will determine the success of my application, terms and the interest rate?
The success of your
application, terms and interest rate will depend on each individual lender’s
underwriting guidelines and scoring system as well as your personal credit
payment history, time in business and business income.
How long does the process
take?
After you
have ordered your personal credit report and submitted your Profile Application to us, we will get
back to you with a pre-approval or our recommendations about what you need to do
to be successful. This usually takes between one and three days. At the same time,
you will also receive our consulting agreement and instructions on how to
proceed. Once you have acknowledged and returned our consulting agreement to us,
we will proceed with the application process. Lender decisions are usually
received in less than 5 business days and if successful, the money can usually
be accessed five to ten business days later.
Can I make my own
credit applications at the same time?
In
terms of our consulting agreement, you must agree not make any applications for
credit on your own until such time as we have completed our service. That is the
only way that we can keep control of the process and ensure the greatest success
for your business credit application process.
Can
I cancel the MegaLoanFunding.com service when ever I want to?
You can not cancel the
applications that have already been submitted to individual lenders but you may
cancel any additional applications from being made.
Do
I have to pay a penalty if I decide to cancel?
No, there is never any
penalty for canceling our service how ever, applications that have already been
made to lenders prior to your cancellation date must be allowed to run their
course and our consulting fee will be due as agreed if they are approved.
What
are the minimum repayment terms of the lines of credit?
Minimum monthly
payments for lines of credit are usually between 1% and 3% of the outstanding
balance.
If
I have bad credit but I have a partner in the business that has good credit, can
my partner apply instead of me?
The answer
to this question is usually yes but it depends on each lender's individual
guidelines. Some lenders will require that your
partner has the majority ownership of your business and others require that
he/she has been an owner for at least two years. Depending on your
situation, we will make application to lenders that, in our experience, your
partner will be most successful with.
What
happens if I am not approved for the amount / limit that I need?
If we are initially
unsuccessful in obtaining all the financing that you require, then we will
continue to apply after waiting three months and then spreading your
applications over a few months until we succeed in obtaining all the financing
that you require.
