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    7 Replies Latest reply on May 8, 2009 1:35 PM by Louis1

    BFI credit solutions? anyone hear of them?

    mfd1974 Newbie
      im a small real estate investor/landlord seeking more rental units...

      im speaking with BFI credit solutions about a LOC for buying REO's ...however it almost sounds too good to be true...they say all you need is a credit score over 720 and they will arrange an initial loan of $150K unsecured LOC...also more is possible?

      what kind of questions do i need to know and has anyone used them or anyone like them before?
        • Re: BFI credit solutions? anyone hear of them?
          Lighthouse24 Ranger
          Read their FAQs carefully -- these kinds of services typically charge and/or build-in some relatively steep costs, and they make credit lines available in stages over time (which a good business can do for itself).
          • Re: BFI credit solutions? anyone hear of them?
            NoBullFunding Scout
            Companies like that typically charge very large upfront fees, up to 20% of the loan amount. They call it a "success fee" or something like that. In most cases, the costs of that credit is not worth it. Companies like that typically prey on unsuspecting and experience borrowers. I'd steer clear.

            Here are their fee's...this is right off their FAQs section. They will charge you $15,000 upfront. In my opinion, thats outrageous.

            How much does this cost? Collapse

            Fees for the first $150,000 of Unsecured Business Credit Lines Obtained:

            $2,500 Initial Retainer Is Due After Application Is Accepted.

            $1,400 - Corp/LLC Prep/Filing/Structuring/Registered Agency/General Review
            $1,100 - Processing Fees, Credit Review, D&B / Experian / Equifax Business Credit File, Etc
            Initial Deposits Deducted From Total Fees

            Total Fees Collected Will Be 10% Of Amount Of Credit Issued

            $15k Due Upon Completion Of Initial Round Of Credit Lines

             

            10% Of Line Amount Due Upon Receipt Of Each Credit Line Thereafter Until Paid in Full
            • Re: BFI credit solutions? anyone hear of them?
              bmt2008 Adventurer
              To me, it seems like one of those bsuiness credit building services. What they do is help you file the paperwork to form an LLC or corp. Then, help you file for a DUNS number (a tracking number from Dunn & Bradstreet), then tell you how you can apply for trade credit with retailers that service businesses. They state that once you do all of this, you should have a Paydex score of 80 and with that score, they say, you should be able to get business credit from a bank in the name of your business only and they will help you fill out the applications.

              Couple of things:

              First - you can do all of this by yourself - which is much cheaper.
              Second - not sure how much business credit will help you secure funding in this environment - now I don't what to knock the companies that provide these services - but, most lenders will base their decission on your personal credit - they don't care if your business is incorporate or not - a high paydex score usually will not help you get credit but a low score could hurt you. Lenders look for two major items - 1) your personal WILLINGNESS to repay and 2) your ABILITY to repay. Thus, if your personal credit is strong - that is good enough as long as you can service (make) the monthly debt payments.
              Three - if it was that easy - everyone would be doing it and you would (as with everyone else here) not be asking for ways to finance your business.
              Lastly - using some of these services can be very expensive - money that you could use in other aspects in growing your company. You would have to weight the benefits (if they can ensure you the funding you need) against the costs (costs of their services and any and all fees they charge against your funding).

              Just remeber, if it sounds to good to be true - it usually is. Also, if any company asks you to pay them upfront (before you receive any benefit) be cautious - make sure you fully underatand what you are paying for.

              Just my thoughts
              • Re: BFI credit solutions? anyone hear of them?
                fbeezer Newbie

                Like you I was sceptical about some of the companies that make claims that they can get you unsecured credit. I had been burned before by advancing money and not receiving anything and then the company dissappeared.

                I found BFI Credit Solutions and they helped me get in the credit I needed. Everything went according to the timeline I was given. Because of this I was happy to pay the fees involved.

                Also I had a plan in place before I received the credit that would generate income to cover the cost of fees and debt servicing.

                I would recommend BFI.
                • Re: BFI credit solutions? anyone hear of them?
                  phanio Pioneer
                  Just be careful - that is a lot of money up front - try to get a guarantee from them - something that returns the majority of your funds if they are not successful - or ask them to take their fee on the back end. Do what you can to protect yourself. The guy that got the credit facility from them really seems to like them - might want to find out more from him.

                  Business Money Today
                  • Re: BFI credit solutions? anyone hear of them?
                    chrishaynes Newbie
                    can you please give me that web site i tryed BFI CREDIT SOLUTIONS
                      • Re: BFI credit solutions? anyone hear of them?
                        Louis1 Newbie
                        Chris

                        I don't know if it too late but the website is http://www.bficredit.com

                        I have had dealings with them and completely satisfied. When I was looking for <a href="www.bficredit.com">unsecured credit business credit</a> I did contact several companies. BFI was the only company that answered my questions directly and were realistic about the situation.

                        Other posters have mentioned costs. As far as I am concerned their costs were very fair. One of the reasons that the costs were fair is because a business plan in place and I used the credit to make money. If you don't think in this manner of course any fee will seem high.

                        Good luck

                        Louis