Owner’s Corner: I have a 700+ score and I have been in business a few years – why can’t I obtain $150K or more in a line of credit or a business loan for my company?

• I have a 700+ score and I have been in business a few years – why can’t I obtain $150K or more in a line of credit or a business loan for my company?

Solution: Here is my advice and the precise steps you need will need to do. This is based on getting the money when it was declined previously or could not be obtained at the best rates and amounts.

1. Check all of your compliance issues. How does the loan processor or underwriter for the good loans make sure you are a real business? From the next step…
2. PULL YOUR BUSINESS CREDIT REPORTS, start with Experian at http://www.smartbusinessreports.com/ then pull your DNB and Equifax reports.
3. Is the addresses correct? Does it state that you have been in business more than 2 years? Does it have your revenue, employees, ARE YOU LISTED AS THE PRINCIPAL?, is it a LOW RISK SIC code? And ABOVE ALL is it clean from any issues and slow pays or liens whatsoever?

   Here is the part that is the MOST important, I personally look at 100’s of these Experian reports EVERYDAY and rest assured that if you have been in business for more than a few years they will have something negative about your business. DO NOT ASSUME ANYTHING. A secretary or you yourself will have forgotten to pay the Sparklett’s bill and it was a day late, or the FEDEX bill, or the phone bill, TRUST ME if your a real business you will have an issue you need to clean up. Would you apply for anything personally if you knew you had collections or issues on your personal credit? It’s $35 either pull it or CALL US and we will pull it for free for you.

    

4. So now what? You have your personal credit reports in front of you and the three business credit reports in front of you right? That’s all you need is ALL 6 of these reports to be as strong as possible, if even one is lacking you WILL NOT get a real business loan, don’t have solid tax returns and equity or security to back up the loan, forget it there is not a chance.
5. So the 3 personal look pretty good (but maybe we need to cycle through some $0 balances and not carry any debt AND put that debt on the business; which is pretty self explanatory that it will strengthen both the business by having credit and your personal by not USING the credit) BUT the business needs to be cleaned up and we need to add some strength.
6. Add strength to the Business scores by acquiring trade lines without doing ANY personal inquiries! Why would you waste an inquiry to get a ridiculous trade line on your business from Staples, Office Depot, Shell, Dell, Apple, Home Depot, Lowes etc? All of these companies AND thousands of others offer business ONLY qualifications.
7. DON’T I repeat do NOT pay Dun and Bradstreet Credibility Corporation! This may seem counterintuitive but this is for daycares, street vendors, and people with BAD personal credit, NOT real companies that want to strengthen their reports and get a business loan.
8. Insure that your HEADER information is complete and perfect with all three business bureaus without multiple files, negative information, inclusive of 5+ employees and revenues over $250k , you are listed as the owner, AND finally that you have an Intelliscore of 90+ (out of 100), A DNB rating of 1R2 or higher (pay NO attention to the Paydex score!), and a Equifax score of 650+ (101-992)
9. Insure that your REAL FICO scores are 700+ (be aware of the inflated scores from some monitoring services)

There you have it. The EXACT recipe of a low or no doc loan for $150K+ that will be approved from any major business bank within 48 hours.

Do NOT listen to a word from a branch application manager that has a training manual about how to fill out an application. HOW AND WHO GETS APPROVED IS NOT IN THE BANK TRAINING MANUAL. Does he have a business and $150k LOC and going to help you get approved? If you’re not talking to the person whom can actually APPROVE the loan then you’re not getting real underwriting criteria.

Call if you want us to help. This is all we do and we do it well.

To learn more about how real business financing works (remember the 80’s.. did you know your personal FICO score then?) click the link below AND scroll to the lower right and download the PDF’s and datasheets (Or again just call and get our help) http://www.fico.com/en/Products/DMApps/Pages/FICO-LiquidCredit-Service.aspx  or you can click here

Ok so all is left is for you to take ACTION towards the future of your business right now… 800.730.9490

Thank You,
Mike T. Berrien | Principal
Sales & Business Finance Consulting
TrueBuild Corporate Credit Program