“Unsecured Business Line of Credit”
Personal Guarantee Loans and NON Personal Guarantee
** Please be sure to review ALL enclosed information, especially the “Frequently Asked Questions” section on page 2.
Loan Disclosure and Transaction Details
Credit Line Amount:
PREMIUM PROGRAM: $100,000 (minimum) to $1,500,000.00 (maximum)
LARGE LINE PROGRAM: $1,500,000.00 up to $2,000,000.00
ADDITIONAL: $10,000,000.00 and above
Interest Rates: Current Prime Rate + 1% up to 3% (maximum)
Loan Processing & Corporate start up fee: $15,000.00
Loan Fees: 12% of total line amount (financed into line)
Payment Amortization: Monthly payments calculated over 20 years
**Personal Guarantee Required
This is an “unsecured” business line of credit, in which no proof of income or personal assets need to be disclosed for loan approval and funding. All income and asset information is disclosed by the borrower on the application, however, there is no “verification” preformed or required by the Investors / Lenders. To further clarify, Income and Assets are “Stated” and not “Verified” The minimum FICO (credit score) for this loan is 690+ or, the borrower can have a person they know with a 690+FICO complete the program with them. It is not required for the borrower to be a current business owner to obtain financing.
There is a “Loan Processing & Corporate start-up fee” of $15,000.00 required from the borrower to begin the loan process. The loan processing & corporate start up fee is collected from the borrower up front. If for any reason the loan is denied, rejected, or cancelled by the borrower, the entire amount (100%) of the start up fee is refunded to the borrower. This fee is used to process the loan as well as create a corporation for the borrower to which the funds (line of credit) will be disbursed. The borrower is then issued a credit card with which they can access or transfer the funds as they deem necessary.
Upon closing of the loan the 12% loan fee is deducted or charged to the line of credit immediately. This fee of 12% is a “tax-deductible” loan fee, just like closing costs on a typical mortgage loan. We advise you to consult with your CPA or tax preparer in regards to the actual % of tax deduction based on your tax bracket. An additional “Broker Post Funding Fee” may apply to first time applicants, please refer to your agent contact for full disclosure.
These credit lines (loans) are typically closed in 5 to 7 weeks or less, and funds are available for withdrawal by the borrower immediately. All borrowers are eligible for a new or additional credit line every 30 days. By borrowing more than you need, and transferring some of the funds to your personal account, you have the leverage to cover the monthly credit line payments until your business venture, or investment turns a profit and begins to pay off the line.
This credit line is not reported to the borrower’s personal credit report, but rather under the corporation credit rating. This gives borrowers the power to consolidate current debt, 1st or 2nd Home Mortgages etc. resulting in a much stronger personal credit score.
Thanks Paul
