What Is Unsecured Business Financing? (UBF)
Unsecured Business Financing, or UBF, is essentially acquiring available lines of credit through the use of bank and credit union credit cards for the purpose of financing a small business. The process typically results in $50,000 to $150,000 in financing per business principal.
The financing is per principal of a business. This can be a business owner, officer, investor, or board member who elects to use their personal credit to facilitate the approved credit limits.
The approvals are based on “no doc and stated income” applications with each approval usually being $30,000 or less per lender. The reason for the $30,000 limit per approval is that this allows banks and credit unions to be within their lending guidelines which allow for these approvals to be stated income, no documents, and credit report decisions only.
The UBF program Does Not Require; tax returns, financial statements, bank statements, balance sheets, hard assets, or other typical full doc approval items.
The personal credit profiles of the principals, at the time of the approvals, should reflect FICO scores of 720 or higher and revolving debt utilization ratios of 45% or less (limit to balances) that are calculated collectively and per each open/active account. We have been able to successfully raise the credit scores of business owners by 80 to 100 points over 60 to 90 days.
One or more accounts should have been open for three years or more, and at least one account should have a limit of $5,000 or more. Other factors include having no derogatory items such as; collections, judgments, liens, late payments, or public records. There should be no more than 4 inquiries on any single credit agency report for the prior 6 months. Credit inquiries for non-open/active credit files have proven to be relatively easy to have removed.
If the above criteria are met, the average financing is $100,000+ per principal. Again, the financing is per principal and not per business with each principal able to be financed only once. The financing process normally takes 3 to 4 weeks to complete.
The credit lines obtained are typically 0% interest for the first 12 to 24 months allowing for a No Cost period to utilize the new lines without being charged interest on what is used.
We know that our UBF process is by far the fastest and least expensive way to finance your business. We will provide you with a Free UBF Funding Range Report so you know exactly where you stand and what you might need to optimize to get your maximum UBF approvals.