Results 1 to 8 of 8
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07-08-2014, 04:53 PM #1
- Join Date
- Mar 2014
- Location
- Ann Arbor, Michigan
- Posts
- 1,289
Bank line of credit and zero balance bank account
Does anyone know how to fund these deals?
My client is getting penalized for have good enough credit to qualify for a bank line. The bank reviews all items presented and advances money to pay them but sometimes leaving a zero or small (under $50) balance.
Client runs about 75K in bank deposits monthly with personal credit of 585.
In business for over 8 years and looking for 50K OBO.
Thanks, Bob
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07-08-2014, 05:07 PM #2
- Join Date
- Jan 2013
- Location
- Berlin, CT
- Posts
- 191
What kind of business? Do they accept credit cards?
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07-08-2014, 06:26 PM #3
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07-09-2014, 07:42 AM #4
- Join Date
- May 2014
- Posts
- 317
Unless he accepts cc's and someone can take it right from the batch chances are he's toast in this industry. Everyone I know in this industry get's paid either through cc batches, or fixed daily or weekly payments. If his balances are $50.00 or less he won't get approved anywhere for a fixed payment, only for an MCA but even that may be tricky because an advance company may see those low balances and think "well if he only has $50.00 balances now, what's going to happen when I take 15-20% of his cc batches". Just wanted to explain my view on how it will be looked at and what you'll face when trying to get this funded. Hope the explanation helped.
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07-09-2014, 08:50 AM #5
- Join Date
- Dec 2012
- Posts
- 116
A patient underwriter can understand the daily sweep and what the true actual daily available cash balance is. The daily ACH will clear before the cash is swept. Rapid does those type of deals, but you have to provide additional documentation and explain upfront with the submission that the bank accounts are effectively a "zero balance" sweep.
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07-09-2014, 12:08 PM #6
- Join Date
- Jan 2013
- Location
- Berlin, CT
- Posts
- 191
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07-09-2014, 12:38 PM #7
- Join Date
- Jun 2014
- Posts
- 541
We'd fund this deal as an ACH or a split. Negative days and returned items are not one in the same thing, as illustrated by your client. Let us get you a contract-
Robert S Bloink
EVP of ISO Partnerships
Direct: 313-218-4663
Email: bb@cooperasset.com
Web: www.cooperasset.com
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07-09-2014, 01:10 PM #8
- Join Date
- Oct 2013
- Location
- New York, NY
- Posts
- 1,203
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