[Sean Cash]

What do you guys think about this?

SBA loans from 5k to 150k. Approvals in 30 mins and funding supposedly within a week. 10 year plans with 6-8% APR. no collateral for loans under 25k.

https://www.smartbizloans.com/

[nwarshaw]

I am biased, but I think adding monthly products to the daily products helps the ISOs with a home for more deals, and the APR and 10 years makes the monthly payment affordable for the merchant, thus increasing the ISOs closing percentage.

[Sean Cash]

Some of the stips of the loan:

Each principal owner must personally guarantee the loan. A principal owner is an individual who owns 20% or more of the business. If a married couple collectively own 20% or more of the business when their shares are combined, then both are considered principal owners.

If you lease property for your business and you are requesting a loan of $26,000 or more, you will be required to get your landlord to sign a release. We will provide this release to you when you upload other required documentation.

Once your tax returns and documents are verified, you will receive an email with a link to print and sign your loan package if you are applying for a $25,000 or smaller loan. If you are applying for a $26,000 or larger loan, you will be contacted by a notary to sign your loan package.

For loans $26,000 and higher, we will need to contact your insurance agent to get certificates of your insurance policies. Our lender will also need to be named as a loss payee on your policies.

We collect bank account, current income statement, current balance sheet, past net income, and outstanding loan information among other financial data.

Collateral depends on what size loan you apply for. If you apply for a SmartBiz SBA loan that is $25,000 or less, no collateral is required. If you apply for a SmartBiz SBA loan that is $26,000 or more, collateral is required (a lien on all fixed business assets including business owned real estate). Also, if you are purchasing new equipment with your loan, our lender will need a first lien on this equipment and will pay your new equipment vendor directly. If you are borrowing $26,000 or more and refinancing existing business debt, our lender will pay off your other loan directly.

No outstanding tax liens
Judgments, bankruptcies & foreclosures settled for over 3 years
No current charge-offs or settlements

No criminal record
-------------
I'd have to say that for a lot of small business owners, the buck stops at financial statements or tax returns. They don't have them, can't find them, didn't file them, did them but they're completely wrong, reported a huge loss for "tax purposes", or their accountant is on vacation and isn't coming back until after they're funded. Financials are a deal breaker.

These loans target small businesses that are truly bankable, the ones that have 100% of their act together. And let's not forget that the government foots the bill on these if the deal goes bad.

[nwarshaw]

50% are bankable, but 50% not for various reasons, but still get funded by SmartBiz. Certainly not the same approval rate as a typical DRP product, but much great than the SBA long version or at a bank.
The stips above are good.
If you want the product deck, contract, etc. send me an email at nawarshaw@gmail.com

[rld]

Sounds like an On Deck SBA loan to me.. nothing new.

[CashAdvanced]

What about when the merchant decides he needs more money 2 weeks later and takes a 40% stack..

[Zach]

What bank is currently offering this? I could sell this all day.

[nwarshaw]

Zach - email me at nawarshaw@gmail.com and I will get you over the product /company deck and the agreement to review

[jbrown]

2 deal killers

If you lease property for your business and you are requesting a loan of $26,000 or more, you will be required to get your landlord to sign a release. We will provide this release to you when you upload other required documentation.

If you apply for a SmartBiz SBA loan that is $26,000 or more, collateral is required (a lien on all fixed business assets including business owned real estate).

Landlords won't sign a release (what's in it for them?) and you need collateral.

[nwarshaw]

- On the landlord release, some will and some will not. To date, I have only had an issue 2 times. We just had a landlord yesterday sign one for a guy getting 350k. It depends on the merchants relationship with the landlord.

- You do not have to have collateral, you added the "required", what the guideline states is less than 26k, no collateral, just personal guarantee, greater than 26k a lien on all fixed business assets. It does not state that you have to have x amount to cover x amount, and to date I have not seen one declined here.

The main hurdle will be liquid credit for most.

My suggestion is to pick up the product, change how you market and be able to open up the top of the funnel, ask some qualifying questions upfront, 20% will go to SmartBiz and the other 80% to Rapid for example. In addition, you can use Rapid as a short term bridge into the SmartBiz product, as well as, on the flip side have a product to graduate your merchants into that over time improve their credit and stop taking the DRP renewal.

One is not meant to replace the other, rather work hand in hand to allow you to have a more full range of products across the merchant need spectrum.

For example, I see SmartBiz in front of a lot of merchants that do not make it across their hurdles, sending someone like Rapid a lot of their turndown business, and then seeing a company like Rapid taking deals where the merchant will not budge off of the high cost, quick turn DRP, and they will be able to offer a place for that merchant, allowing you to get into a section of the merchant base that does not qualify for a full SBA/bank loan, but is not really a DRP merchant either. I also think that segment is bigger than the entire DRP space today and under-served.

[skideeppow]

Some of the stips of the loan:

Each principal owner must personally guarantee the loan. A principal owner is an individual who owns 20% or more of the business. If a married couple collectively own 20% or more of the business when their shares are combined, then both are considered principal owners.

If you lease property for your business and you are requesting a loan of $26,000 or more, you will be required to get your landlord to sign a release. We will provide this release to you when you upload other required documentation.

Once your tax returns and documents are verified, you will receive an email with a link to print and sign your loan package if you are applying for a $25,000 or smaller loan. If you are applying for a $26,000 or larger loan, you will be contacted by a notary to sign your loan package.

For loans $26,000 and higher, we will need to contact your insurance agent to get certificates of your insurance policies. Our lender will also need to be named as a loss payee on your policies.

We collect bank account, current income statement, current balance sheet, past net income, and outstanding loan information among other financial data.

Collateral depends on what size loan you apply for. If you apply for a SmartBiz SBA loan that is $25,000 or less, no collateral is required. If you apply for a SmartBiz SBA loan that is $26,000 or more, collateral is required (a lien on all fixed business assets including business owned real estate). Also, if you are purchasing new equipment with your loan, our lender will need a first lien on this equipment and will pay your new equipment vendor directly. If you are borrowing $26,000 or more and refinancing existing business debt, our lender will pay off your other loan directly.

No outstanding tax liens
Judgments, bankruptcies & foreclosures settled for over 3 years
No current charge-offs or settlements

No criminal record
-------------
I'd have to say that for a lot of small business owners, the buck stops at financial statements or tax returns. They don't have them, can't find them, didn't file them, did them but they're completely wrong, reported a huge loss for "tax purposes", or their accountant is on vacation and isn't coming back until after they're funded. Financials are a deal breaker.

These loans target small businesses that are truly bankable, the ones that have 100% of their act together. And let's not forget that the government foots the bill on these if the deal goes bad.

I got a guy they were going to fund 350k and when it went to the bank, after 10 days of undwriting the bank came back and already had a loan app from him for only 125k. So needless to say, the deal got scrapped.
I have another one in the hopper, but yes, they require a ton of paperwork. Most people will not have this on hand.

[skideeppow]

OK, just for some updates here. I have sent a number of deals to these guys. They totally misrepresent this product. Approvals in 30 min and funding in days?
I have one $150k deal that we are going on 6 weeks.
The amount of paperwork is totally out of hand.
Second deal where the merchant followed through, same thing. it has been two weeks and they are now saying that once the documents come in (and this list is 19 documents long) it will take 4 weeks to close.
I would not call this quick or easy. And to only make 1.5%, not a great use of time.

[NCL]

OK, just for some updates here. I have sent a number of deals to these guys. They totally misrepresent this product. Approvals in 30 min and funding in days?
I have one $150k deal that we are going on 6 weeks.
The amount of paperwork is totally out of hand.
Second deal where the merchant followed through, same thing. it has been two weeks and they are now saying that once the documents come in (and this list is 19 documents long) it will take 4 weeks to close.
I would not call this quick or easy. And to only make 1.5%, not a great use of time.

Thank you for the info. At 1.5%, it is not worth the time if it takes that long.