Great Lenders Of Lines Of Credit

Hello, and welcome to this module, Great Lenders of Lines of credit. Now here’s what we’re going to cover. Number one what are the great lenders for lines of credit here in 2021 and beyond, and what to look for with these lenders? Typically you can even want to reach out to your actual bank, that you have a banking relationship with. Lendio, BlueVine, Fundbox, Streetshares, Kabbage. So these are the main online ones. And then when to consider a business line of credit for your business, I’ve already covered this, but just really how those requirements look. So business lines of credits are flexible financing. Like I’ve already explained that allows you to use your money as cash up to that amount in your business. So we’ve done some of the digging to figure out which ones are going to be really good for online lenders that’s not what your traditional bank.

So Lendio, is the best business line of credit overall. And you can apply with the Lendio brief online application. Then it’s going to take that figure out which lender is going to basically match you based off your situation. So they’re going to work with several lenders and essentially you’re going to act like a broker. So a Lendio’s market approach basically offers large lines of credits at competitive interest rates. So most business looking for a line of credit, you can go to Lendio first and hopefully it’s the only stop now. Bluevine they’re also going to have the best for loans. So basically Lendio is going to give you the ability to shop and they’re going to pair you up and they’ll more than likely do a soft inquiry, which means it’s not going to show up on your personal credit.

Bluevine, this is another one, and you can see some of that stuff on your NAV profile as well. So basically they’re an online lender and BlueVine’s interest rates typically are starting at about 4.8 interest rates, even lower than that. If you know, lower than what you’ll find a traditional bank, it’s a great deal if you qualify. So BlueVine has higher application criteria, very, very high than most lenders on the list and at least lines of credit. And at least for lines of credit, basically, and that the business owners with at least $40,000 a monthly revenue, basically you make a 40K a month or $480,000 a year. And your credit score is 650. This is the minimum to qualify for the best rates and you’ll need to have an impressive qualification with the minimum credit score, right? So even, so if you want to look for, if you meet these requirements and I’m recommending you have like a 725 FICO score and you’re in one of the industries that’s not on the restricted industries list, then you’ll be good to go.

So I applied for BlueVine and they declined me because of the industry I was in. They thought I was in credit repair and then had to help them understand that I’m in the education business, but there was like, forget about it. Actually, I think my website at the time, my email address was redirected to my financial investment site and not MyMoneyEDU. And I tried to say, Hey, look, this isn’t associated, but they felt like, Hey, look, we’re not buying it. So this makes sure, and this is before I knew all of the stuff about them doing the research, never enough solid corporate credit file and all that good stuff.

So Fundbox is the best for bad credit. And I don’t recommend you do this if you have bad credit because the interest rates are going to be ridiculous. But you know, what they’re going to do is they’ll offer you, you know, a business as long as two months can apply for $50,000, they can apply. And all you need to do is have 50,000 annual revenue. And what they’re going to do is give you a very, so basically you can get one of these, even if you have a 500 credit score, but they’re going to be the most expensive. And you probably won’t be able to get a line of credit over a hundred thousand dollars. And they’re probably not going to give you a line of credit. What they’re probably going to do was give you like a, a factor cash advance that you got to pay back weekly. So even with those constraints from, you know, this is gonna still be you know, if you’re in a bind, you got to get some quick, quick, quick funds, fast for a different deal.

Just know you’re gonna pay out the nose. But hopefully the return that you’re going to get is greater than the interest rate you’re going to pay. Streetshares, this is a long term lender. And most online, most of these lenders online are going to offer short repayment periods, typically on lines of credit, but typically between 12 to 24 weeks. So Kabbage is going to offer six to 18 weeks. Whereas the street shares is going to be offering it up to 36 months. So weeks, as opposed to months with their payback structure is really, really powerful. So that’s the one of the things. So the other one’s going to give you the line, but they say that we need our bread back in 24 weeks, bro. Like what’s up. Versus what they’re saying is, Hey, look, you got three years to pay us back over time.

And essentially it’s a long-term loan plus a high interest rate. So it isn’t always the best choice, but StreetShares does have a competitive breaks, you know, to, to consider. So if you’re looking for some extra income to pay off your line of credit, StreetShares provides just that. Now Kabbage, if you need a loan ASAP. So they have an automated process using automatic underwriting. So what they’re gonna do is connect your information to their account, you know, accounting software with your bank account to get you approved. So they’re going to use your actual bank account. And at that process, it only takes a few minutes and you’re going to get three choices for your capital, PayPal funds usable immediately direct deposit accessible the next day or Kabbage credit card that takes a few days, but it works a lot like like a debit card and it’s convenient, but it has extremely high interest rates.

So if you want funds deliver really, really quickly and you have strong cash flows and your bank account, then you can consider this. I wouldn’t recommend this one, but again, if you need something ASAP, it is good. So when you look at this particular comparison sheet, you can see the brand for the online lenders and this isn’t including your actual traditional bank. These are just online lendings. So Lendio is going to be anywhere between a thousand to 500,000 low interest rate. Typically it’s going to be 8% and $50,000 a year. So BlueVine 5k to 254k 0.8, 40,000 a month. Fundbox up to a hundred thousand dollars, 4.6, six draw rate and $50,000 a year street shares to 5k to 250k 8%, 25K minimum revenue and Kabbage up to 250k 1.5 factor rate, which means going to be paying that money back out weekly and then $50,000 a year.

So this is how this works. So there’s a couple that differentiates between lenders and a products. So minimum requirements. So essentially most lenders are going to be very strict requirements around personal credit scores and annual revenue for the business and also your business industry and what you’ll be using the funds for. So looking at the different requirements across the lenders is the easiest and quickest way to determine which products will suit you best. And then the other thing is credit line details. So the size of the credit line how much can you borrow was to set minimum and maximum to draw on the regular basis. You need to know this so most, you know, most products may not may or may not require a regular draw, meaning you have to take money out of it, but some rates may be locked in and then what are the usage fees?

So the typical usage fee or a typical cost per dollar borrow not to exceed $1.70. Of course, this will vary depending upon the individual’s application and how good or bad you view or you’re viewed as a risk. And there’s, if there’s any maintenance, origination fees with that particular line of credit geared towards startups, right? The application process. Another thing to think about is how quickly can you find out if you’re approved to be approved, and if you’re approved, when can you access the funds and do you need the funds quickly? Or can you afford to wait? So again, in my traditional opinion, if you want to use one of these things, it’s going to have higher interest rates. I just recommend you just focus on sales, just go make some money, right? And then what’s your repayment term. So when does it have to be paid? How does that to be paid? How can the business handle the cash, all these things, all what you want to consider with these particular lines of credit.