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  1. #1
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    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

  2. #2
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    What kind of business? Do they accept credit cards?

  3. #3
    Veteran Reputation points: 134672 Chambo's Avatar
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    Quote Originally Posted by GRP Funding View Post
    What kind of business? Do they accept credit cards?
    "does he accept credit cards"? Wow, I thought I just did a time warp to 2007 there for a moment

  4. #4
    Quote Originally Posted by bdshaw View Post
    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
    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.

  5. #5
    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.

  6. #6
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    Quote Originally Posted by Chambo View Post
    "does he accept credit cards"? Wow, I thought I just did a time warp to 2007 there for a moment
    Putting a split on the CC processing seemed like an easy way around the bank statement issues. That's why I asked. 2007 was fun though.

  7. #7
    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
    logo-01smaller.jpg

  8. #8
    Senior Member Reputation points: 10944
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    Quote Originally Posted by BB_Cooper View Post
    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
    logo-01smaller.jpg
    I completely agree with you. The world of underwriting has become this minefield of what works and what doesn't and the items that used to be good indicators are not so much so anymore.

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