Advantages of our UBF program:
- We have researched the lenders most likely to approve credit on the very best terms.
- The initial approvals are no docs; no tax returns, no financials, no bank statements, etc.
- It is a 100% unsecured program. No assets are required or get tied up in the funding.
- The program is stated income and personal credit report approval decision driven.
UBF Versus – SBA Loans:
Have you ever met anyone who got approved for and actually received funding from an SBA Loan? The average SBA Loan underwriting decision time frame is 90 to 180 days and here is what they don’t tell you … 90+% of all SBA Loan applications are declined!
So you might wait 6 months, with no guarantee of funding, only to find out that you are declined. That is a long time to waste just to get the bad news.
Clients who are pre-qualified for our UBF program can obtain their first credit line approvals within 24 hours of their applications being submitted to lenders. The majority of our clients will reach $50,000 in approvals from those lenders within 10 days of initial application submission.
Interest rates on SBA loans start the clock on day one, (only if you get approved) whereas the UBF approved credit lines come with 0% interest rates for 12 to 24 months. SBA loans file blanket liens (called that because they cover everything). That means they will file liens on the borrower’s assets such as; your home, savings, and all business assets. This makes it almost impossible to do any other type of lending until the SBA Loan is paid off. No contest!
UBF Versus – Merchant Account Advances:
Talk to anyone who has taken one of these “harsh money loans” and they will most likely tell you that they have stepped into a hole from which they cannot get out.
These lenders advance money based on the business past and future Merchant Account receipts. They typically look back at 4 months of receipts and advance 1 for 1 based on those monthly receipts. So if the average monthly credit card receipt processing is $30,000 for the prior 4 months, they will advance $30,000 against future receipts with pay back of “1.4”.
What does the 1.4 mean? It means that for taking the $30,000 advance, $42,000 is what will be paid back. The way it is paid by taking a percentage of each new credit card. So you don’t pay them back, your new customers do with each swipe.
The payback period is normally setup for about 9 months, meaning you will pay back $42,000 on the $30,000 advanced in just 9 months. That is over 40% interest for the year. Harsh!
Our UBF funds 3 to 4 times as much and is 0% interest for at least the first year. No contest!
UBF Versus – Revenue Based Loans:
Same principle as the Merchant Account Advance, only here they are looking at your monthly Gross Revenue by examining your previous bank statements.
They will advance the 1 to 1 and still want the same 1.4 pay back over the 9 months.
The only difference is that they pay themselves back by having their hand in your bank account where they take a daily ACH from you. Still over 40% interest, Ouch. No contest!
UBF Versus – Invoice Factoring:
With this funding program, you sell your outstanding business customer invoices to a factoring company who advances you payment on them today.
The advantage is that you don’t have to wait for your customers to pay you. The disadvantage is that factoring company only pays you 96 to 97% of your invoices each month, so you end up paying 36 to 48% interest a year. Versus paying 0% interest for the first year UBF. No contest!
UBF Versus – 401(k) Rollovers:
This program asks you to use your savings to invest in your business. You are leveraging your financial future against the success of your current business model. Is that a safe bet?
For this business funding program you must have at least $50,000 in your 401k savings that will be rolled over into a 401k that is setup for your company. You are then free to “invest” or spend your new 401k as you see fit.
There are lots of IRS rules to follow, funds are not available quickly, and it requires professional help to get it setup. There is normally a $5,000 fee for the setup service. You pay $5,000 out of your savings before you get a dime to use in your business, and you have to deal with the IRS!
Versus the UBF where you pay nothing until you are successfully funded, you are not placing your savings at risk, and you are able to pay the success based fees from your new credit lines. You are not out of pocket a dime. No contest!
UBF Versus – Use The Equity in My Home (HELOC):
Needless to say, this is not a good way to fund your business. The prospect of a business failing which causes anyone to lose their home is one that every business owner should seek to avoid.
Our UBF is Unsecured Business Funding. As the name implies, the funding is 100% unsecured. Therefore, the business owner is certain that no one’s home has been placed at risk due to any potential business failure.
Get funding by placing your home at risk versus getting 100% unsecured funding. No contest!
UBF Versus – “I Can Just Apply at My Bank By Myself!”:
We hope that you are well aware that no one at your bank can tell you what their underwriting approval guidelines are, because they simply don’t know.
They don’t know that your bank requires 2 years in business, it requires no more than 3 credit inquiries in the past 6 months, it requires at least $30,000 a month in gross revenue, it requires FICO scores of 740+, it requires …
The point is that there are thousands of business lenders and hundreds of business lending banks and the one thing they have in common is that are not going to tell you what their approval criteria is.
So how did we find out? We did years of research on 4,000+ business lenders and 3,000+ vendor lines of credit to find out what their funding programs were, and what they required to issue an approval. Go it alone and get declined versus use our UBF to get approved. No contest!
More About The UBF Program
The UBF program consists of Lenders that are willing to take a risk on “No Doc/Credit Only” small business owner loans. They do so because they keep their individual approval limits low (typically $30,000 per credit line approval or less) which lowers their risk per deal.
The base credit requirements also provide a layer of lesser risk to the lender as the applicants have shown a past of responsible borrowing and histories of repaying their debts.
Not having good credit is a main reason many business owners believe they cannot pre-qualify for the UBF program. Not True! We have helped many business owners optimize their personal credit reports and raise their FICO scores by 80 to 100 points given 60 to 90 days.
For example, having existing revolving debt utilization in the 80 to 90% range can lower credit scores by 50 to 60 points. Each credit inquiry can be worth a 2 to 5 point credit score reduction depending on the age of the inquiry. Inquiries that are not associated with open/active credit accounts can be fairly easy to remove and there are other ways to raise personal credit scores.
It is not just the “business owner” that can pre-qualify for the credit lines. Business partners, family members, or friends that may be willing to allow their personal credit to be used can be utilized to fund the business.
The UBF program is “per business principal funding” and not just per business. Therefore, if there are 4 principals in the business (owners, officers, investors, board members, etc.) then potentially 4 UBFs can take place for that business.
UBF Program Underwriting Approval Guidelines
- 720 FICO Scores. Very often we can raise scores quickly to get you there.
- No more than one 30 day late on any account in the past two years.
- No open collection accounts. We have high rate of removing closed collections.
- No Bankruptcies still reporting on any of the three personal credit files.
- 45% or lower debt to limit ratios on open revolving credit accounts.
- At least 1 revolving $5,000+ limit account open for at least 3 years.
- No open liens or judgments. Accounts on reports must be paid.
- Low recent inquiries. No more than 4 per credit agency for the previous 6 months.
The first thing we do is to create your free “UBF Funding Range Report” which shows you exactly where you are, how much can be funded, and what you must do to optimize your funding. Getting your UBF Funding Range report is risk free.