The Reasons You DO NOT Want to Manage the Business Loan Process on Your Own.
We are often asked, “Why do I need to pay a consultant to assist me in obtaining business loans? I have perfect credit, can’t I just do it on my own?” On the surface this statement seems to make perfect sense, however, since the mortgage meltdown and ensuing credit crisis, like Elvis, “sense” has left the bank building. All the rules have been rewritten on how to obtain business loans and what the banks are looking for and what lending triggers they use to grant a business loan. Everyday we have new clients that come to us after being turned down by their bank of 20+ years. This has nothing to do with creditworthiness, but rather, not understanding what programs and lending biases each bank utilizes when underwriting their business loans. Before you venture down the road of do-it-yourself business loan development and ruin your personal and potentially your business’s credit, please consider the following:
- Lender Selection – In this post subprime lending paradigm, selecting the appropriate lending institution is quite possibly the most important single criteria when beginning the business loan application process. There are literally hundreds upon hundreds of banks and credit unions in this country. Which banks will loan to small businesses with stated income applications? Start-ups? Do not require collateral? Have the best interest/promo rate? The sheer number of banks offering business loans is daunting. True, each bank will give general guidelines on how they underwrite business loans, however, the actual nitty gritty is proprietary and until an application is submitted, the borrower will never truly know what the bank will do. Using a trial and error method to figure this out will absolutely ruin your ability to get future credit for yourself and your business. I can’t count the number of clients that have come to us after trying to obtain business loans on their own. Unfortunately, at that point their credit has been littered with inquiries and we can only say “sorry, contact us in 6 months and we’ll try again at that point.” We have developed a systematic business loan application process that includes only the banking partners and programs we know your business can qualify for on the absolute best terms.
- Guideline Changes – Banks’ business loan guidelines and underwriting methodologies are constantly changing. Strategies to acquire business loans that work today, may not work tomorrow. This is the very reason Seed Capital has developed the most robust, dynamic lender database in the industry that monitors hundreds of banks and their respective business loan underwriting preferences in real time. This gives Seed Capital instant access to the what, who and how much a particular bank is lending at any time, allowing our consultants to fashion a lender/business loan application strategy tailored to each our client’s individual needs, credit profile and geography. This unparalleled understanding of business loan underwriting procedures is the very reason Seed Capital is the only company in the business loan industry that offers an unequivocal performance guarantee.
- Reconsideration Requests – If a bank says no, do you know who to talk to and what to say in order to turn that no into a yes? Our years of working with business loan underwriters has given us a deep insight into how to use reconsideration requests to get credit approvals. 80% of business loan underwriting is initially done with what is called an automated underwriter (AU) which is a computer program that scrubs the applicant’s credit, considers additional variables such as income and spits out a business loan decision based on that input data. AU’s are plagued with issues and often decline business loan applications for quirky reasons. With Seed Capital’s consultation, our clients are able to turn initial business loan declines into approvals roughly 90% of the time. This is because we are able to analyze the decline reasons, assist the client in formulating a reconsideration request and know exactly which individual in each lending institution they need to speak with in order to get their business loan declines overturned
- Window Dressing – You may think that you have perfect personal credit, however, close to 75% of our clients need some form of “window dressing”. This is a term we have coined that simply means making minor tweaks to the personal credit report in order to get the most business loan approvals with maximum limits and the lowest rates. We understand exactly what credit criteria on which the banks base their business loan approvals. Our consultation can mean the difference in getting a $20,000 business loan on your own, or $150,000 in business loans with our window dressing techniques.
These are just a handful of reasons on why you need an expert to assist you in wading through the intimidating world of business loans. In the business loans world there is absolutely no substitute for experience and know-how. Seed Capital will ensure you get the maximum working capital business loan up front and build a perfect business credit rating in just a few short months. At that point, you will never need to worry about your business’s working capital needs ever again. GUARANTEED.