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    17 Replies Latest reply on Jan 22, 2009 12:51 AM by catalyst.det

    Lending Explaination Needed

    catalyst.det Newbie
      I would like to know if anyone can explain why BOA doesn't offer loans in Michigan. This is troublesome for me, I have accounts with them but cannot get any access to funding. I need to find a way around this, I have more than $750,000 in accounts recievible this year but risk losing some if I fail to get the funds to expand my office and staff.

      Any insight would be appreciated, much thanks.
        • Re: Lending Explaination Needed
          Creditbuilder Scout
          That's your problem there. You said it. Forget BofA. When individuals get turned down for loans, some banks will call us. www.businessformationgroup.com give us a call. We may be able to help secure up to $250k for your business with alternative banks, but first must establish what you have and have not done. Look forward in speaking with you.
          • Re: Lending Explaination Needed
            Creditbuilder Scout
            We deal with that problem on a daily basis. Call us at 1-800-270-5960
            • Re: Lending Explaination Needed
              Creditbuilder Scout
              also check out businessformationgroup.com/newsletter that might help also
              • Re: Lending Explaination Needed
                amspcs Ranger
                I have no idea why BOA doesn't offer loans in MI. But my initial reaction to your post was: If BOA doesn't offer you what you need, why did you select them as your business bank in the first place? Surely there are other banking institutions in Michigan you could turn to who DO offer what you need. No disrespect to B of A, we ourselves do personal and business banking with them. But in your case, is there any reason you feel obligated to them and only to them?
                • Re: Lending Explaination Needed
                  LUCKIEST Guide
                  Lending Explanation Needed, Welcome Elijah

                  Can you please explain why you feel that you will "risk losing" some of your A R??
                  I can help you collect or set up a program to help you collect A R

                  Also suprised that Barry from Amspcs did not make a pitch to help you. Barry is a great person and so is his company if you use credit cards.

                  LUCKIEST
                    • Re: Lending Explaination Needed
                      amspcs Ranger
                      Thanx for the compliment, Lucky. Appreciate it. I just saw the original post as an opportunity
                      for an honest and hopefully helpful observation on my part. The plug angle didn't even
                      occur to me. And BTW, just curious---what IS the reason B of A doesn't offer loans in Mich,
                      if that is indeed the case? Are they not licensed or something in that state?
                    • Re: Lending Explaination Needed
                      Creditbuilder Scout
                      Hey lucky, please give me barry's contact as well... and whilst on that topic, give me a call too.
                      • Re: Lending Explaination Needed
                        bmt2008 Adventurer

                        Don't know why BofA is not in Michigan. When I was lending for a national bank - not BofA - we had different rules (laws) that we had to follow for each state. For example, could not offer any home equity based products in Texas (that has now changed) or could not offer non-interest bearing (free) checking accounts in California.

                         


                        Could just be that the laws in that state are prohibitive for lenders like BofA.

                         


                        Regarding your accounts receivables. There is a tremendous amount of factoring companies out there. Not only will these companies advance funds or design a line of credit around your A/R accounts but will work the other side to ensure timely collections. If you are having trouble collecting or are just over extended with your A/Rs, these companies may be your salvation.

                         


                        You can find a list of well know A/R factoring companies at www.businessmoneytoday.com.
                        • Re: Lending Explaination Needed
                          catalyst.det Newbie
                          Thanks guys, I'm not married to staying at BofA, just hoping to keep things simple. That's maybe too much to wish for...Anyway, I'm a design firm, I'm not sure if I could be considered a Merchant, it's frustrating because that seems like the only money that is being lent. So if any of you have further insight or could offer a solution, I'm looking at $190,000 to fund a much needed expansion. What is the best way to get this WITHOUT having to pay $1500 in fees upfront, and 12% after that, on top of the interest? I have a credit partner who has an 880 score and my own personal assets of roughly $400,000 who do I have to talk to in order to get a fair loan?
                            • Re: Lending Explaination Needed
                              bmt2008 Adventurer
                              As explained, getting funding today is not just hard, but very expensive. That is just the way it is. Not fair - not right - but the way it is. Not sure what you would consider a fair loan? You want someone else's money but don't want to pay for it. If your customers come to you and say they want fair design - what would you do? Lower your price? Give them service for free? Works both ways. Sorry, that is just the way it is - very hard market and all the power is in their hands!
                                • Re: Lending Explaination Needed
                                  catalyst.det Newbie
                                  My definition of fair is delivering what is advertised, I'm not stupid to think that bankers can't make a living. Please don't think that I expect that. I am looking for something that is transparent with closing fees, and is not asking for a $1500 processing fee and 12% fee on top of the 11% interest rate. What do I need to do to be eligible for a loan with bearable terms?
                              • Re: Lending Explaination Needed
                                XelasCEO Newbie
                                I share your pain...I'm also looking for a line of credit to assist in my expansion and my receivables is over 1M. BOA in their wisdom decided I was not credit worthy. I'm working with another lendor who is or than happy to assist me. We're just not big enough..or rather not asking for enough money to make it worth their while.
                                  • Re: Lending Explaination Needed
                                    amspcs Ranger

                                    To Catalyst and Xelas--

                                    I wouldn't take being TD'd for a bank loan personally these days. In this economy, money to lend
                                    is hard to come by unless your surname is Rockefeller, even with all the billions in bailout funds the big banks have been handed at our expense, which is REALLY hard to swallow.

                                     


                                    Anyway, if either of you accept credit cards in your business, you probably qualify for an advance on your cc receivables. Now, I'm not going to lie to you: It' costs more than typical bank loans, but it's not a total rip either, and it is certainly a better alternative than losing your business for lack of necessary funds.

                                     


                                    In any event, it costs zero to find out what you can get and how much it would cost you. You need to accept cc's as already stated, be in business at least one year, and process min $4000 in cc volume monthly with at least 15 settlements per month.

                                     


                                    If interested, contact me and I'll get the ball rolling.

                                     


                                    AMSPCS

                                     

                                    amspcs@juno.com
                                  • Re: Lending Explaination Needed
                                    catalyst.det Newbie
                                    Thanks for the input, but based on what you described, I should probably start looking to open up shop overseas instead. As a design firm, my billings are high (roughly $18,000/month) for a 3 person firm, but I don't process credit cards, I've only been open since August, and my ignorance is going to show through here but I'm not even sure what you mean when you say "settlements." So I guess a better question for me to ask is what do I need to be doing different before I lose a handful of already awarded contracts?
                                    • Re: Lending Explaination Needed
                                      catalyst.det Newbie
                                      One more thing, if any parts of this discussion need to happen outside of the forum, and more details could be shared, my email is elijah.kafer@catalyststudios.us.

                                      Much thanks.
                                      • Re: Lending Explaination Needed
                                        catalyst.det Newbie
                                        Last thing, I'd like Luckiest's help in figuring this out, I need to know what I should be looking for (type of loan, type of lender, what good terms are for my situation, etc...) Anyone else feel free to comment if you feel like you could.