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SBA/Loan help

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Brianinpa18330grh
Valued Member

SBA/Loan help

I have a car care center franchise with almost 800k a year in tax return revenues. I have a long credit history that is usually over an 800 fico. The problem is I opened a restaurant and have about 600k invested. All my cards are maxed out and I have some balloon loans coming due. I have been paying about 6000 a month in payments on everything and need to rool all into one loan. I have always heard horror stories on sba loans but dont think I have many options. My fico is hovering around 700 now. Also, I only pay myself 65k a year but could bump that up to alot more in the blink of an eye if thats going to help. Any advice would be great. Thanks

Message 1 of 9
8 REPLIES 8
Creditaddict
Legendary Contributor

Re: SBA/Loan help

Who do you bank with for personal and for business... If the bank is seeing that kind of cash flow, I would be talking with them first for options.  You say cards are maxed... are those all personal cards that report or do you have some hidden business lines?

Message 2 of 9
Brianinpa18330grh
Valued Member

nk Re: SBA/Loan help

I bank at Citizens and they dont like all that personal debt. The credit cards are personal, but I do have some that are biz. Just dont knnow what my best ave is. Thanks

Message 3 of 9
Creditaddict
Legendary Contributor

Re: nk Re: SBA/Loan help

I would look into a small local CU or maybe Navy Fed and convince someone that you are going to use the money to pay off all the credit cards... In this economy banks don't like to see util over 30-50% if being generous.

With so much cash flow, you can't pay a few off for a month or two to see your score shoot up and your util drop real low and then quickly apply for a some loans and some non reporting business cards?

Message 4 of 9
Anonymous
Not applicable

Re: nk Re: SBA/Loan help

I had an SBA Loan through Accion Texas in Dallas in 2006 to build my first business, I was unexperienced and they got me to sign a contract for an $18,000 loan and charged me a $2,000 fee and 36% interest rate and I was never able to get off the loan or lower the interest rate. My business closed in the first year and I had to continue making the payments, they harrased me very much for two months that I was unable to make the payments becasue I lost my job too and they did not offer any type of protection or insurance. My monthly payments was $560 and the total I paid was $32,000. Total ripp-off and taking advantage of a first time hispanic business owner. I wonder how many other people have they done this to.


There is an identical post here: http://ficoforums.myfico.com/t5/Business-Credit/SBA-Loan-Rip-off-Accion-texas/td-p/841058.

 

Please don't cross post. It makes things very confusing for everyone.

Message 5 of 9
lou1359
New Member

Re: SBA/Loan help

I need to consolidate business debt on both bus/personal cards. Bank says before I can get loan need to pay off cards. Need loan to pay off cards.  I thought if your bank declines a business loan, you can request to go through Smalll business. I am paying monthly a little over min. but have not been late. Credit is maxed but have been paying down get down card decreases limit so it looks like I have spent up to limit. also  went from 12- 18% intrest on the four cards now all four 29.99%.  Can any one advise where to go. I know if I consolidated to one payment. I could wipe out this debt quickly.

Message 6 of 9
Creditaddict
Legendary Contributor

Re: SBA/Loan help

 


@lou1359 wrote:

I need to consolidate business debt on both bus/personal cards. Bank says before I can get loan need to pay off cards. Need loan to pay off cards.  I thought if your bank declines a business loan, you can request to go through Smalll business. I am paying monthly a little over min. but have not been late. Credit is maxed but have been paying down get down card decreases limit so it looks like I have spent up to limit. also  went from 12- 18% intrest on the four cards now all four 29.99%.  Can any one advise where to go. I know if I consolidated to one payment. I could wipe out this debt quickly.


 

These days a consolidation loan is just not available unless you don't need it and have stellar credit.  The only thing you can try to do is call the banks and tell the business is closed and you are now paying these through personal money and you need a financial hardship program.  Many will give you a plan for 1 year at reduced interest and reduced payments.

Some banks are better than others :

National City - took me to 0% for life and $139 payment, was paying almost $400

Advanta - NO

Barclay - 1 year 5.9 apr and $239 payments, no back to 15% and $420 payments Smiley Sad I can reapply in 12 months for help again

Cap1 - waived interest for 3 months, that's it... but didn't close the accounts

Personal cards would not work with me until I missed a payment.

 

if you tell me what banks you have I can share what I know.. Private me if you like

Message 7 of 9
lou1359
New Member

Re: SBA/Loan help

I applied for an equipment loan.  We need to upgrade.  Bank explained that equipment is no longer collateral. We need to sign personal guarantees and our industry is dwindling.  They did not  want to take risk.  Commercial printer,  husband and wife owners,  credit scores 650/663. The bank is the bank I have been doing business with for twenty five years.... Have had numerous loans which has always been paid on time and in full, No liens, no bankruptcy.  Just bad time. Outside contractors want credit card prior to shipping of orders.  I am paying for jobs before I even invoice customer. Customer can take 1-3 months to pay. A vicious cycle we are caught in.

Message 8 of 9
Anonymous
Not applicable

Re: SBA/Loan help

I own a Digital commercial print company, I know how it is getting loans its tough right now, so far I have had best luck with Key Equipment Finance they have approved me for multiple loans with no PG...but then again it all depends on how much this equipment is...

 

 

 

 

 


@lou1359 wrote:

I applied for an equipment loan.  We need to upgrade.  Bank explained that equipment is no longer collateral. We need to sign personal guarantees and our industry is dwindling.  They did not  want to take risk.  Commercial printer,  husband and wife owners,  credit scores 650/663. The bank is the bank I have been doing business with for twenty five years.... Have had numerous loans which has always been paid on time and in full, No liens, no bankruptcy.  Just bad time. Outside contractors want credit card prior to shipping of orders.  I am paying for jobs before I even invoice customer. Customer can take 1-3 months to pay. A vicious cycle we are caught in.


 

Message 9 of 9
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