credit lines? 7 posts by 7 users

Posted: 02/19/2008 at 10:50AM

I have no idea if this is an offer, a fee up front before commitment or something else. Hence it could be a scam.

If you go to a real bank and you get a real credit line (unsecured) an annual fee is expected. Something around 1% to 2%. Also likely to be some transaction charges depending on the type of line and the paperwork per transaction.

So, do your homework. The number is not out of line for the right situation. There should be no fees charged until you have a binding commitment and the line is ready to be accessed.

Posted: 03/05/2008 at 11:35PM

If the fee is an origination fee, then it sounds reasonable. Origination Fees are paid when you close the loan and can be taken from the loan amount itself.

If they are asking for the money up front prior to any work. I would be leary personally.

If you are wanting to establish credit in your business name, get some credit cards, get some trade lines, and head to a lender and ask for a UBLOC ( unsecured biz line of credit). Dont' get crazy and ask for 1M, you won't get it. Take what they give you and slowly ask for increases.

I know National City is pretty decent, or at least has been.

As to business credit cards, try checking out the following link

http://www.creditcards.com/business.php

Posted: 07/22/2008 at 11:13PM

I was looking to borrow some hard money and what i got to my e'mail today. What do you think?

General Information on $1,500,000 in Funding
If you need money for your business and have tried normal banking sources, but have not gotten the financing you need, you have come to the right place. As you know, with the credit crunch we are in today, securing business credit is becoming more and more difficult to obtain.

We offer a shelf corporation at least 6 years old in full corporate compliance, with full financial, tax returns and a Paydex score of 80+. We enhance our aged corps AAA bonds and securities to give our lenders a greater sense of comfort and leverage, which gets you approval amounts that are 3-4 times greater than anywhere else

Our proprietary program is unparalleled to any other program currently being offered. Our funding sources are not your typical lender/banker. Our long history and international sources allows us means to financing and banking activities that a typical US citizen would not be privy to. The end result for participants is $1.5M in unsecured corporate lines of credit.

Transaction Details
There is a small up-front fee of $6,900 for the filings and application processing. The cost of your aged corporation ($23,500) can be paid up-front or can be taken out of the first amount of personal credit of $25-$50K which takes about 5 days. This credit card can be used immediately and can be canceled after the balance of your credit is established and this is just to pay for the corporation if you do not wish to pay the 18.5 upfront.

The balance of your corporate credit comes in $500,000 increments and takes about 30-45 days. Upon closing on the loan, there is a fee of 15% (plus a 1% broker fee), which is tax deductible just like closing costs on a typical mortgage loan. (Please consult you CPA or tax preparor for the actual %).

The interest rate will be prime plus 1-3% (depending on the guarantors credit, usually +1) and you pay only on the amount you use amortized over 20 years. At prime +1, the monthly payment on $250,000 would be $1,938.

A person with a 720+ fico score should be on as the CFO of your corporation the first two months while the corporation is applying for the initial credit lines. This is corporate business credit and there is no personal liability—the corporation is liable for the debt and no fico is required after the corporation is credit is established.

If the borrower does not have a viable business model, which will produce revenue beyond the loan fee, we would strongly advise the borrower to seek or devise a new business model.

With the credit market continuing to tighten up we urge you to take advantage of this great opportunity while it is available.
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