[shieldfunding]

looking for line of credit 790 fico has 1 mil line of credit with wells fargo and $500k in bank needs $500K to show he has $2 mil to get awarded a project .
never did line of credit before any direct sources for real line of credit ?

[abfunders]

Sent you an email again, Sam.

[Jstarr]

ill give you $800k for one month with collateral @ 10%, close in 5 days.( client needs RE as Collateral )

[shieldfunding]

got him 500k 11% 6 months

[nrh1lp]

got him 500k 11% 6 months

11% or 1.11?

[RichardGerard]

11% or 1.11?

Great point! 1.11 for 6 months is approximately 40% APR

[shieldfunding]

i dont believe i wrote APR and as far I know 11% is same as 1.11 ? or maybe my math is wrong?

[shieldfunding]

wasn't interest rate was fee as was explained to the merchant

[abfunders]

LOC = Take when you want, payback when you want, draw again as needed
Term loan = Fixed amortized payback

Someone with a 790 FICO can get credit cards for much cheaper and, because of that, you could have made more money on your end. Why did you only present a 1.11 to him when you can present an 0% APR product and charge 10-15 points?

https://www.breakoutfinance.com/apr-calculator/

[RichardGerard]

i dont believe i wrote APR and as far I know 11% is same as 1.11 ? or maybe my math is wrong?

APR is annual percentage rate not a factor rate.. See the APR on a 6 month loan for 500k paying back $555k.. The rate is 37%

[Michael I]

APR is annual percentage rate not a factor rate.. See the APR on a 6 month loan for 500k paying back $555k.. The rate is 37%

correct me if i am wrong but there is also a difference in the interest rate and an apr . a bank loan at 3% interest will not be a 3% apr since there is always some type of closing fee.

[nrh1lp]

correct me if i am wrong but there is also a difference in the interest rate and an apr . a bank loan at 3% interest will not be a 3% apr since there is always some type of closing fee.

You are correct, there is a difference. You are thinking about effective rate though when you include fees for things.

[RichardGerard]

correct me if i am wrong but there is also a difference in the interest rate and an apr . a bank loan at 3% interest will not be a 3% apr since there is always some type of closing fee.

When you see Mortgages with APR's different from the interest rate that reflects points etc.. A 1.11 is a factor rate, whereas principal and interest that resets down with each payment of principal balance is how that calculates to 37%