Unsecured lines of credit-beware of application fees
Father of three was fired and decided that he was tired of relying on a company to provide for his family. He is determined to buy and reopen an old restaurant once attended as a child. Having never owned a farm or commercial real estate before, his dream of becoming a restaurateur is weakened by brokers and their many taxes and mountains of paperwork. The price of property is to rise considerably if he doesn’t act soon, but this lens is apparent more and more to achieve. If you’re an agent or financial advisor this is your opportunity to intervene and make this dream a reality. But how do you help potential borrowers avoid the pain of being ripped off by unscrupulous intermediaries who make a living out of application fees.
2011 There is small balance commercial loans available that are designed to help customers buy or refinance real estate, and you should never allow you or your client to pay an application fee.
Loans ranging from $ 50,000 to $ 500,000 are available with adjustable rates starting at 8.99% and fixed rates starting at 10.99%. The maximum loan value is 70%, and customers have the possibility to use an unsecured credit line or the deposit ULOC.
The ULOC implies lines of credit of up to $ 150,000 to buy a business, buy real estate or simply expand the capital. They are available for customers who may or may not own a business or property, but have a credit score of 700 or higher. There is very little documentation required, other than a simple, one page application, and entrepreneurs can access this capital in as little as two weeks. Payments are interest only and work similarly to traditional lines of credit.
The business owners are being taken advantage of because they are so desperate to access capital, but must be careful that they are doing business with. The first and most important thing to do is to avoid paying taxes. If a banker or broker is not willing to provide a term sheet, references and a detailed explanation of where the capital is coming from without you paying an application fee, so I would avoid doing business with them all together. Professionals are willing to provide capital and be compensated only if you decide to access the capital they are offering.