Unsecured Funding vs. Other Funding Programs

Secured vs Unsecured Loan

UNSECURED FUNDING vs. Other Business Funding

The success of a small business can be tied directly to their ability to access working capital. You simply cannot grow a business without capital. UNSECURED FUNDING provides fast access to working capital.

We have spent years researching what thousands of lenders and vendors require before granting an approval. Constant research is how we get the results you need. With our extensive database of lenders approval underwriting guidelines, your UNSECURED FUNDING applications will be placed with the very best chances of gaining significant approvals.

Once a principal in your business has been pre-qualified for the UNSECURED FUNDING program, the funding success rate is 95% with an average of $80,000 approved in the first 30 days. We do not stop there, after 6 to 12 months the average is more than $120,000 in unsecured business funding.

Our UNSECURED FUNDING program is no docs, stated income, 100% success based, and will result in at least $25,000 in approved credit or there is no charge. There is no contest!

The advantages of our UNSECURED FUNDING program are:

  • We have researched the lenders most likely to approve credit on the very best terms
  • The initial approvals are no docs; no tax returns, no financials, no bank statements, etc.
  • It is a 100% unsecured program. No assets are required or get tied up in the funding
  • The program is stated income and personal credit report approval decision driven
  • Have you ever met anyone who got approved for and actually received funding from an SBA Loan? The average SBA Loan underwriting decision time frame is 90 to 180 days and here is what they don’t tell you … 90+% of all SBA Loan applications are declined!

So you might wait 6 months, with no guarantee of funding, only to find out that you are declined. That is a long time to waste just to get the bad news.

Clients who are pre-qualified for our UNSECURED FUNDING program can obtain their first credit line approvals within 24 hours of their applications being submitted to lenders. The majority of our clients will reach $50,000 in approvals from those lenders within 10 days of initial application submission.

Interest rates on SBA loans start the clock on day one, (only if you get approved) whereas the UNSECURED FUNDING approved credit lines come with 0% interest rates for 12 to 24 months. SBA loans file blanket liens (called that because they cover everything). That means they will file liens on the borrower’s assets such as:

  • your home
  • savings
  • and all business assets

This makes it almost impossible to do any other type of lending until the SBA Loan is paid off. No contest!

UNSECURED FUNDING vs. Merchant Account Advances

Talk to anyone who has taken one of these “harsh money loans” and they will most likely tell you that they have stepped into a hole from which they cannot get out.

These lenders advance money based on the business past and future Merchant Account receipts. They typically look back at 4 months of receipts and advance 1 for 1 based on those monthly receipts. So if the average monthly credit card receipt processing is $30,000 for the prior 4 months, they will advance $30,000 against future receipts with pay back of “1.4”.

What does the 1.4 mean? It means that for taking the $30,000 advance, $42,000 is what will be paid back. The way it is paid by taking a percentage of each new credit card. So you don’t pay them back, your new customers do with each swipe.

The payback period is normally setup for about 9 months, meaning you will pay back $42,000 on the $30,000 advanced in just 9 months. That is over 40% interest for the year. Harsh!

Our UNSECURED FUNDING funds 3 to 4 times as much and is 0% interest for at least the first year. No contest!

UNSECURED FUNDING vs. Revenue Based Loans

Same principle as the Merchant Account Advance, only here they are looking at your monthly Gross Revenue by examining your previous bank statements. They will advance the 1 to 1 and still want the same 1.4 pay back over the 9 months.

The only difference is that they pay themselves back by having their hand in your bank account where they take a daily ACH from you. Still over 40% interest, Ouch. No contest!

UNSECURED FUNDING vs. Invoice Factoring

With this funding program, you sell your outstanding business customer invoices to a factoring company who advances you payment on them today.

The advantage is that you don’t have to wait for your customers to pay you. The disadvantage is that that factoring company only pays you 96 to 97% of your invoices each month, so you end up paying 36 to 48% interest a year, vs. paying 0% interest for the first year UNSECURED FUNDING. No contest!

UNSECURED FUNDING vs. 401(k) Rollovers

This program asks you to use your savings to invest in your business. You are leveraging your financial future against the success of your current business model. Is that a safe bet?

For this business funding program you must have at least $50,000 in your 401k savings that will be rolled over into a 401k that is setup for your company. You are then free to “invest” or spend your new 401k as you see fit.

There are lots of IRS rules to follow, funds are not available quickly, and it requires professional help to get it setup. There is normally a $5,000 fee for the setup service. You pay $5,000 out of your savings before you get a dime to use in your business, and you have to deal with the IRS!

Compare that to UNSECURED FUNDING, where you pay nothing until you are successfully funded, you are not placing your savings at risk, and you are able to pay the success based fees from your new credit lines. You are not out of pocket a dime. No contest!

UNSECURED FUNDING vs. Use The Equity in My Home (HELOC)

Needless to say, this is not a good way to fund your business. The prospect of a business failing which causes anyone to lose their home is one that every business owner should seek to avoid.

Our UNSECURED FUNDING is Unsecured Business Funding. As the name implies, the funding is 100% unsecured. Therefore, the business owner is certain that no one’s home has been placed at risk due to any potential business failure.

Get funding by placing your home at risk versus getting 100% unsecured funding? No contest!

UNSECURED FUNDING vs. “I Can Just Apply at My Bank By Myself!”

We hope that you are well aware that no one at your bank can tell you what their underwriting approval guidelines are, because they simply don’t know.

They don’t know that your bank requires 2 years in business, it requires no more than 3 credit inquiries in the past 6 months, it requires at least $30,000 a month in gross revenue, it requires FICO scores of 740+, it requires…

The point is that there are thousands of business lenders and hundreds of business lending banks and the one thing they have in common is that are not going to tell you what their approval criteria is.

So how did we find out? We did years of research on 4,000+ business lenders and 3,000+ vendor lines of credit to find out what their funding programs were, and what they required to issue an approval. Go it alone and get declined versus use our UNSECURED FUNDING to get approved. No contest!

More About The UNSECURED FUNDING Program

The UNSECURED FUNDING program consists of Lenders that are willing to take a risk on “No Doc/Credit Only” small business owner loans. They do so because they keep their individual approval limits low (typically $30,000 per credit line approval or less) which lowers their risk per deal.

The base credit requirements also provide a layer of lesser risk to the lender as the applicants have shown a past of responsible borrowing and histories of repaying their debts.

Not having good credit is a main reason many business owners believe they cannot pre-qualify for the UNSECURED FUNDING program. Not True! We have helped many business owners optimize their personal credit reports and raise their FICO scores by 80 to 100 points given 60 to 90 days.

For example, having existing revolving debt utilization in the 80 to 90% range can lower credit scores by 50 to 60 points. Each credit inquiry can be worth a 2 to 5 point credit score reduction depending on the age of the inquiry. Inquiries that are not associated with open/active credit accounts can be fairly easy to remove and there are other ways to raise personal credit scores.

It is not just the “business owner” that can pre-qualify for the credit lines. Business partners, family members, or friends that may be willing to allow their personal credit to be used can be utilized to fund the business.

The UNSECURED FUNDING program is “per business principal funding” and not just per business. Therefore, if there are 4 principals in the business (owners, officers, investors, board members, etc.) then potentially 4 UNSECURED FUNDINGS can take place for that business.

UNSECURED FUNDING Program Underwriting Approval Guidelines

  • 700 FICO Scores. Very often we can raise scores quickly to get you there
  • No more than one 30 day late on any account in the past two years
  • No open collection accounts. We have high rate of removing closed collections
  • No Bankruptcies still reporting on any of the three personal credit files
  • 45% or lower debt to limit ratios on open revolving credit accounts
  • At least 1 revolving $5,000+ limit account open for at least 3 years
  • No open liens or judgments. Accounts on reports must be paid
  • Low recent inquiries. No more than 4 per credit agency for the previous 6 months
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