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mattsind

posts: 20

Nov 19, 2007 11:01 PM ET Quote Report Abuse

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Thanks for the comment mattsind.

I don`t know enough about your situation to give you a complete answer, but feel free to drop me a line.

Its always good to ask questions and be completely upfront about your business and personal finances before applying because a decline does affect your credit. Any good banker should be tell you your chances of approval before even running your credit.

I`m curious if you applied for an equipment leased loan (secured loan) or a regular business loan (unsecured). Every business writes of expenses, so a decline for this reason may simply mean your business shows no profit. Ask for details regarding your declines and recommendations too.

First off, I want to thank you for responding to my post.

You`ve enlightened me on something, while causing me concern. I didn`t realize that each time you submit for a loan at a lending institution and it`s declined that it affects your credit rating. Is your credit rating affected negatively?

I started off with secured and then tried unsecured loans. I denied for both. My business is just not making enough of an income to be considered a worthy investment.

That`s my analogy of the situation anyway.

Thanks again for the advice.
In the future, I intend to put your advice to practice before actually submitting my loan application to a lending institution.

mattsind

posts: 20

Nov 19, 2007 11:04 PM ET Quote Report Abuse

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Yeah I`ll get it to you in a day or so, my wife handles that side of the business. FYI. this is not the first loan we`ve had from them so I know that does make a difference.

Hi ToddF,

I`m wondering if your post is intended for me?

mattsind

posts: 20

Nov 19, 2007 11:07 PM ET Quote Report Abuse

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Here are two postings from my blog, Show Me the Money, that may offer insight into how to make a good funding request presentation.

What Will A Banker Ask Me?

Am I Bankworthy?

Thank you very much for the suggestion. I will have a look.

mattsind

posts: 20

Nov 19, 2007 11:11 PM ET Quote Report Abuse

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Thanks for the posts. They had a lot of nice info in them.

Thought I would ditto your sentiments. I find it is indeed true. This forum is a wealth of information for an business owner. In my opinion, any level of business would find some relevant and useful information in this forum. I know, I have.

mattsind

posts: 20

Nov 19, 2007 11:18 PM ET Quote Report Abuse

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I found your post very interesting. I am wondering how you would guide me in my particular situation.

I have great credit. I’ve paid off previous bills, and I’m paying my current bills on time. But because of the current level of actual activity in my business, I want to expand my services.

This expansion has the potential to increase my bottom line. But this expansion requires additional equipment and money that my business does not have.

Because I placed so much faith in my ‘great’ credit, I approached several banks and applied for a loan with a business line of credit for $350,000.

I was informed, as a matter of fact, that because I am writing off all my expenses to the bottom line of my business, I did not qualify for this type of loan.

The banks I approached were basically telling me that my business is not making enough income.

What existing small business loan resources cater to business owners in my position?

I am desperately trying to keep pace with a highly competitive industry.

At one point, I once believed that great credit was all that was needed too, when it comes to loans and lending money or assets of any kind. This is really not the case.

My experiences with banks and various lending institutions taught me that the business’ bottom line is a fundamental issue considered by today’s financial organizations as part of their loan approving process. They need to be assured that you make enough money after your expenses to cover their loan payments.

Even though I had a great credit rating, I was still just not making enough money to secure the type of loan I needed, especially when these banks considered the amount I was requesting and saw that after I paid my expenses, there was not much finance left.

However, I did come across an ideal resource, www.thesnaploan.com. This website seems to be millenniums ahead of its time, when it comes to current lending practices. I was approved for a revolving line of credit that I can pay off and use again if I so decided. I really love this option. This website is a good place to start if you need an unsecured or secured loan, and you’ve been having difficulties elsewhere.

Thanks, Markcan, I have to admit that there are similarities in our situation. I`m hoping that when I contact www.thesnaploan.com I will be as successful as you were.

I`ll keep you posted on my progress.

macontish

posts: 3

Oct 07, 2008 1:36 PM ET Quote Report Abuse

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"I received financing through usunsecured dotcom and had no problems. My old bank had me in the dark as to when they would close and offered me horrible terms. I also got a free hawaiian vacation."

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