Citizens LOC

[Anonymous]

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@longclimbback wrote:
I applied for the loc last Thursday and signed the document today. I asked for 75k but I was approved for 50k. I was declined by citizens but approved by fundation. There was no closing fee but there will be a 2% fee on each draw. 15.49 % interest rate. Draw is amortized over 18 months. If you take a second draw, the 18 months starts over and the new total amount is amortized. I didnt have to take an initial draw. Very easy process. No financials other than 3 months bank statements.
I've been a sole p for 29 years. Took in about 450k last year with about 98k profit. High 700 FICO scores. Not sure about business reports. Only accounts that might report are 2 chase ink cards with 30/45k balances between them and a boa business card with 8/25k balance. No other business debt. So if those cards report, I'd assume that my business reports cant be great because of high utilization.

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Not trying to sound like a BoA commercial again, but if you already have a BoA relationship, you should check with them on a line of credit.  They should be able to beat what citizens offered by a substantial margin although they will likely require tax returns.

[werthere]

I have a BofA business relationship with over $100k on deposit, I think I'm the top tier they have, Platinum Preferred, or whatever it is. I was initially approved, then denied. And let me tell you why. When I applied, I applied with a wrong EIN. Why, you may ask? I didn't even realize I did it. I guess when I originally opened my BofA account many years back, the banker put in a wrong EIN. Some made up EIN. Nobody caught it, including me, until the UW saw my tax return and there was a discrepancy since my correct EIN was on the tax return. So I confirmed my correct EIN number, and when the secondary review went to confirm the initial UW decision, they declined due to "insufficient bank relatioship". Why? Because all my bank accounts were in the made up EIN, however the initial UW submitted it with my correct EIN, secondary review saw no bank account associated with that EIN.

My business banker realized the error, sent in for recon, and I was still denied. Too many inquiries. I think I had six in 24 months, and three were from BofA. I kid you not. They never mentioned inquiries on the original app.

So I went to Citizens, and the rest is history. Funny thing is BofA UW gave me a huge CLI on my Business Cash Rewards right after, that was only few thousands less than what they initially approved me for an LOC. I can't make this up.

[Anonymous]

That is a wild story, thanks for sharing. 

I have been lucky with the 2 business reps I have had.  The first one was fantastic.  The second one is absolutely on top of things, but is always trying to get me to apply for something on his monthly calls.  I'm going to toss him a bone after I complete this years tax return and see if can get my line of credit increased even though I rarely use it.

[Anonymous]

werthere..great info.

I have question for friends who know anything about business accounts.

I wanted to ask about 3 bank statements citizen bank asked, and if you had any activity in those 3 statements ,

I ask because i do have 2 year old corporation business account and about 94k parked in there, but i have no activity going, the amount is there for past 7 months. I have equifax fico @ 802. I have feeling i have shot at this but they may not like my business account statements with no activity. If i decide to wait 3 months , how should i handle my account to show what they want to see ? Thank you.

[Anonymous]

They are essentially wanting to see a revenue stream, not just having funds parked there. Although having the same amount in there for a long time might look good, it doesn't show any growth. 

If you are providing another source for "revenue" then I think you'll be fine.

[werthere]

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@Anonymous wrote:

werthere..great info.

I have question for friends who know anything about business accounts.

I wanted to ask about 3 bank statements citizen bank asked, and if you had any activity in those 3 statements ,

I ask because i do have 2 year old corporation business account and about 94k parked in there, but i have no activity going, the amount is there for past 7 months. I have equifax fico @ 802. I have feeling i have shot at this but they may not like my business account statements with no activity. If i decide to wait 3 months , how should i handle my account to show what they want to see ? Thank you.

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Oooh, great question. I'm not sure what their thought process is since that's all back office. I will, however, tell you that there's a section in the app titled "cash flow", but again that's reserved for back office (algorithm). I have no idea how they would determine cash flow other than bank statements since they don't ask for any other income documentation. So maybe?

[confuzed]

Anybody gotten approved with a amount over 100K?

[longclimbback]

So I tried tapping my 50k loc last friday. Asked for 15k/50k. Got the message today that it was declined due to covid-19 and almost all credit lines will be suspended until the economy improves.  I was not totally surprised,  but I've gotten both phone calls and emails asking me when I was going to tap my loc in the last month so I am disappointed.  

Does anyone have any links to   how a sole p who hasn't worked since January can tap a sba loan or the PUA unemployment benefits?  Thanks

[bourgogne]

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@longclimbback wrote:

So I tried tapping my 50k loc last friday. Asked for 15k/50k. Got the message today that it was declined due to covid-19 and almost all credit lines will be suspended until the economy improves.  I was not totally surprised,  but I've gotten both phone calls and emails asking me when I was going to tap my loc in the last month so I am disappointed.  

Does anyone have any links to   how a sole p who hasn't worked since January can tap a sba loan or the PUA unemployment benefits?  Thanks

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wow, when did you open this puppy up and verify you have not given it any action

[Anonymous]

Is your LOC with Citizens directly or Fundation? Do you request a draw from a Portal or Citizens online banking?