Post a new topic
    2 Replies Latest reply on Jul 14, 2008 4:30 PM by CodeMaster

    How can i get a loan - working capital?

    CodeMaster Newbie
      Hi;

      I'm new to this community and it's my very first post.
      I hope someone here can share some information that will help me understand how the system works or, who knows, borrow me some money :-)

      About 3 weeks ago I started looking for a loan and I got the some answer for dozens of different Banks: "I'm sorry, we can't..."
      And the funny thing is i'm just looking for $30,000.00

      Using an online loan calculator, i figured out those numbers:
      Loan amount: $30000
      Term in years: 4
      Interest rate: 9% (which is not that good)
      Montlhy payment: $747

      My point with the number above is: "Are tey thinking i can't pay $747 monthly? Why?"

      To help you understand my frustration here is my profile:

      My credit score (from Experian) is 680.
      Credit history started at: 07/01/2006

      This also came from my credit report:


       

      CREDIT PROFILE

       


      Percentage of credit currently available: 0%
      Satisfactory accounts: 8
      Now delinquent/derogatory accounts: 0
      Was delinquent/derogatory accounts: 0
      Public records: 0
      Number of inquiries: 10

       


      DEBT PROFILE

       


      Real Estate debt (mortgages): $0
      Revolving debt (bank and retail cards): $16,700
      Installment debt (fixed payment loans): $23,600
      Other debt: $0
      Collection debt: $0

       


      Approximate Total Debit: $40,300



      I'm 35 years old software engineer who works as a computer programmer since 17.
      I own a business which just completed 2 years. The business is registered in NJ, where i live.
      I'm on the "Internet hosting business". I run the business from my home office.
      I have no idea about the companies credit score, all i have on it's name is a Staples credit card (which i got a few months ago).

      This is my only source of income and has been enough to pay "all my bills on time", i don't have any late payment on my credit history.
      The money I'm looking will help me finish a project (it's a proprietary software I already started) and pay for an marketing campaign.

      Now, it's hard when you have a good idea, it's been working and paying your bills for two years, you have a good credit and when you need $30,000.00 to finally make it even better, every door you knocked you just hear: "Sorry, but we can't help you..."

      So, how the system works? What else do i have to prove to get US$30,000.00 to improve my business?
      What i found out is: To get money... i have to prove that "I have money". Isn't that cool?
        • Re: How can i get a loan - working capital?
          mlebovits Newbie

          Yes, they're thinking you cannot pay $747 per month.

          You don't need to have money to get money. You have to give the lender proof you can pay back a loan.

          To get approved by a bank lender, you need to show them the following:

          1. Positive cash flow on a historical basis that shows you can pay $747 per month
          2. Projections of future cash flow that shows you can pay $747 per month
          3. Collateral inside the business protecting the lender in the event you fail to pay $747 per month
          4. Collateral outside the business protecting the lender in the event you fail to pay $747 per month

           


          and...

           


          you have to demonstrate the same with respect to the $40 thousand of credit card and installment debt that you have accumulated as well.

           


          Good luck.

           

            • Re: How can i get a loan - working capital?
              CodeMaster Newbie
              Hi mlebovits,

              First of all, thanks for your repply.
              The thingie is:

              The lenders are using automated systems to process the applications.The online forms basically aks you your name, address and social security.
              When you hit the "Apply button" it checks your credit report and gives you a "final decision" based on your credit score and credit history.

              So, what difference it makes if i have bank statments and other docs that can proof everything (positive cash flow, projection and bla bla bla) if they don't ask for it?

              http://... you have to demonstrate the same with respect to the $40 thousand of credit card and installment debt that you have accumulated as well http://...

              I believe my credit report already does that. As i said, i never made one late payment. It's enought to show that i can handle those bills.
              But anyways, i think that the problem here is this automated process.

              I miss those old days when the bank manager use to talk to you, see each detail of your situation and approve the loan himself, based on what he saw.
              I love computers (i have to, i'm a software engineer) but... some things just won't work whithout a real person to take care of.