The only difference between unsecured bank loans and bank lines of credit is the approved amount, which can be activated during the future time usually by just writing a check. The interest rate and terms are exactly the same for both types of loans.
Local banks and lending personnel they usually do not have the financial expertise, or knowledge to approve a loan of this type, so that the financial brokers attempt to place most of these loans. The broker has a contract with a major national bank to allow the placement of these loans using underwriting standards previously agreed upon. You can check this out to know about lines of credit.
The requirements to be approved are quite simple. Most banks use a combination of personal credit and scored Dunn & Bradstreet's payday. With a score of 660 + respectively, and 65 +. This type of business, number of years in business, and the sales volume determine the maximum loan amount is approved.
Applicants looking for companies that handle these types of loans should be careful not to pay advance based on a promise to grant the loan, as most of these companies are not credible, and experienced in this type of loan.
Once you have the initial approval, you must be prepared to provide some of the following types of information:
- Country copy Driver’s License
- Verify bank account
- IRS personal and business tax returns for the past year or more.
- License or letters of founding.
- Additional information on request.
- Signed Application, and Broker Loan Agreement.
This application is signed should contain all relevant information about you and your business, and the Loan Agreement broker loan fees, or points. It is not uncommon for these loans to cost to be from 4% to 7% of the total loan or line of a credit line, and must be paid upon funding or approval. In the case a loan is approved, but rejected by the applicant, most companies will charge a fee to cover their administrative costs.