[skideeppow]

I am at ropes end with these guys. I have a deal working with them, going on 4weeks. He has jumped through every hoop possible. Provided reams of paperwork. We are now almost at closing and they come back with 9 ucc's dating back 20 years. Some of the businesses that filed are not even open anymore.
110k in funding.

My questions are this.
1. Why would you underwrite this and wait till we are trying to close to bring this up. You pull credit right away, ucc's should show up then, Wright?
2. How can I possibly clear UCC's that were filed by business that are no longer open?

Any input would be appreciated.

[MCNetwork]

You would need the merchant to request UCC termination letters from the filing parties. The company names should be on the credit report.

As far as the old UCCs, they probably fell off the credit report after 7-10 years and wouldn't show up in the initial pull. Only a deeper dive into the credit history and older businesses would uncover the other UCCs...

[Karen37a]

Edit*

Pm me for a letter to remove

[Jstarr]

FYI, Anyone can file a UCC3 Termination, this also means the borrower, and the only repercussion is civil court - how do i know this,

I filed ucc's against someones business as additional collateral for a HM loan we did, 3 weeks after that he filed the UCC3 and had it removed so he could get an MCA and the only way we found out is when we went to update - so i called the state of Florida and they in fact told me that" Anyone" can file termination and that they are merely record keepers and not an enforcement agency and that my only recourse was civil court.

Side Bar - And in the MCA world it is considered a sale of future proceeds, and not a loan, there is technically no debtor or creditor. so they may not be valid -and to extend that a bit further, most MCA companies contract is under one name and UCC under another and if that ever went to court - the argument would be, " Show me the contract where i entered into an agreement with XYZ company that listed on the UCC.

So i asked, don't you require id of paperwork from the person filing the termination - answer was NO!
[B]

I am at ropes end with these guys. I have a deal working with them, going on 4weeks. He has jumped through every hoop possible. Provided reams of paperwork. We are now almost at closing and they come back with 9 ucc's dating back 20 years. Some of the businesses that filed are not even open anymore.
110k in funding.

My questions are this.
1. Why would you underwrite this and wait till we are trying to close to bring this up. You pull credit right away, ucc's should show up then, Wright?
2. How can I possibly clear UCC's that were filed by business that are no longer open?

Any input would be appreciated.

[CraaaCraaa Radio]

I am at ropes end with these guys. I have a deal working with them, going on 4weeks. He has jumped through every hoop possible. Provided reams of paperwork. We are now almost at closing and they come back with 9 ucc's dating back 20 years. Some of the businesses that filed are not even open anymore.
110k in funding.

My questions are this.
1. Why would you underwrite this and wait till we are trying to close to bring this up. You pull credit right away, ucc's should show up then, Wright?
2. How can I possibly clear UCC's that were filed by business that are no longer open?

Any input would be appreciated.

Well your 1st mistake is that you only have smartbiz as that's how it looks?

[sigmundpannu]

Welcome to the world of SBA loans? UCC's don't show up on a personal credit report, nor on the SLA Report (which SmartBiz uses a model of) .Every SBA Loan makes the borrower jump through hoops and provide reams of paperwork. It's a 10 year loan, not 4 months. A UCC 20 years old has already been prescribed - they expire and I am sure if it is expired no one is requesting a termination on those. Most banks don't run the UCC report until the end of the process. We run them at the beginning to speed up the process, because it can be a deal killer.

[skideeppow]

Well your 1st mistake is that you only have smartbiz as that's how it looks?

For SBA, you are correct. And then they just went and cut the funding amount in half. They are just the f*(&^$ng worst.

[RichardGerard]

Welcome to the world of SBA loans? UCC's don't show up on a personal credit report, nor on the SLA Report (which SmartBiz uses a model of) .Every SBA Loan makes the borrower jump through hoops and provide reams of paperwork. It's a 10 year loan, not 4 months. A UCC 20 years old has already been prescribed - they expire and I am sure if it is expired no one is requesting a termination on those. Most banks don't run the UCC report until the end of the process. We run them at the beginning to speed up the process, because it can be a deal killer.

Once the deal gets through the 'audit' process (just before they submit to funding bank), have the client do their own UCC search to confirm what they're going to have to deal with. Better to be ahead of the curve than behind it.

While it isn't perfect, the SBA 7A Express program is considerably faster than the traditional 7A program. Try to over deliver and under promise by saying the process 'can take as long as 45 days', so when it closes in 35 you're the all star..

[skideeppow]

so who else can i use for SBA?

[RichardGerard]

PM

[CraaaCraaa Radio]

so who else can i use for SBA?

Sterling National Bank is one.


Eastern Bank is another.

Now they have a max funding amount that surpasses 350k

No private messages needed.

CraaaCraaa Radio is transparent like a glass of water

[CraaaCraaa Radio]

For SBA, you are correct. And then they just went and cut the funding amount in half. They are just the f*(&^$ng worst.

I have funded plenty of deals with SmartBiz. Shout out to Kyle and Trevor. But they have strict processes and guidelines. Smartbiz basically is log in to portal upload docs with clicking Start a New Loan. Sit back and Smartbiz reps takes the driver seat and simply wait about 3-4 weeks on average for that funded notification. But you will be notified by email notification of all stages the file is in. Be proactive and provide anything additional that the reps can't get themselves from your merchant.

They have a really smooth process but YOU put yourself in a tight spot when you have no other SBA lender. Trust and believe I just gave you two that you can reach out to directly and build a revenue shared partnership. But you have more than that as well, that caters to the SBA formula.

Good Luck, your deal may be dead with SmartBiz now but doesn't mean the next one will.

[seanedeska]

My company https://gosbaloans.com is looking to improve on what smartbiz completed. I think they have priced out a lot of lenders because of the fees they charge these banks. Our service is free for the bank. This has allowed us to expand our lending network to 33 banks. Same online application, same automated process but more options. Feel free to PM me or email me at sean@gosbaloans.com.

[RichardGerard]

Sterling National Bank is one.


Eastern Bank is another.

Now they have a max funding amount that surpasses 350k

No private messages needed.

CraaaCraaa Radio is transparent like a glass of water

Transparency can still be ambiguous CraaaCraaa..

Knowing the name of a bank doesn't mean it will help you contact the lead of C and I lending that works with SBA, and non SBA products. We work regularly with M&T Bank, First National Bank of Long Island, Santander Bank, Peoples United Bank, Empire National, Signature Bank, and of course the others that provide Bank (Wells, Celtic, US Bank, and Live Oak for certain industries) and non Bank SBA lenders.

Smartbiz is an aggregator that packages loans and deals with banks throughout the country that have specific appetites to deploy capital behind the SBA guarantee. They do a lot of the placement work for the Broker based on their relationship/guideline matrix.

Knowing the name of folks there won't help you either as the deals get entered into a portal and assigned a relationship manager. If you work with them I suggest finding out who the assigned relationship manager is immediately.

Call them up and work through the process with them- and your client. Find out what makes a complete file. Prepare the client for the landlord subordination letter and let them know that since this type of loan is not collateral centric, credit and DSCR is more scrutinized- and that will also spill over to personal debt as well. If they have had a history of many other loans/UCC's, have them do a search in advance of closing and start working on their satisfactions.

Obvious: this process take considerably more time than the MCA world, and the ROI of your time is not commensurate with the typical 7-12 points made on revenue based finance. It can however, be the right product for your client, and accordingly worth the effort..

Hope this provides the clarity you sought

[CraaaCraaa Radio]

Transparency can still be ambiguous CraaaCraaa..

Knowing the name of a bank doesn't mean it will help you contact the lead of C and I lending that works with SBA, and non SBA products. We work regularly with M&T Bank, First National Bank of Long Island, Santander Bank, Peoples United Bank, Empire National, Signature Bank, and of course the others that provide Bank (Wells, Celtic, US Bank, and Live Oak for certain industries) and non Bank SBA lenders.

Smartbiz is an aggregator that packages loans and deals with banks throughout the country that have specific appetites to deploy capital behind the SBA guarantee. They do a lot of the placement work for the Broker based on their relationship/guideline matrix.

Knowing the name of folks there won't help you either as the deals get entered into a portal and assigned a relationship manager. If you work with them I suggest finding out who the assigned relationship manager is immediately.

Call them up and work through the process with them- and your client. Find out what makes a complete file. Prepare the client for the landlord subordination letter and let them know that since this type of loan is not collateral centric, credit and DSCR is more scrutinized- and that will also spill over to personal debt as well. If they have had a history of many other loans/UCC's, have them do a search in advance of closing and start working on their satisfactions.

Obvious: this process take considerably more time than the MCA world, and the ROI of your time is not commensurate with the typical 7-12 points made on revenue based finance. It can however, be the right product for your client, and accordingly worth the effort..

Hope this provides the clarity you sought

Thanks for sharing. I can only share my personal experiences with lenders and funders that fund my merchants. And along the way build relationships with key players with in each organization.

Have a great and Productive Day¡!!!

[DiamondBL]

SBA is so much fun!
(said no one ever)

[gail_waters]

I HAD A 350K DEAL WITH THEM AT THE FINISH LINE THEY KILLED IT LAST MINUTE CAUSE THEY SAID THEY FOUND 2 LATE PAYMENTS TO A SINGLE CREDIT CARD FROM YEARS AGO, WAS A GREAT MERCHANT THAT I HAD REALLY GOOD RELATIONSHIP WITH, WE WERE SO AT THE FINISH LINE HE TOOK A SECOND ADVANCE with prepayment addendum in short period thinking the sba was gonna pay it offf, then they ruined my relationship with the guy cause he felt like i made it seem like the sba waS GOING THROUGH TO TAKE THE MCA

[Yankeeman07]

I HAD A 350K DEAL WITH THEM AT THE FINISH LINE THEY KILLED IT LAST MINUTE CAUSE THEY SAID THEY FOUND 2 LATE PAYMENTS TO A SINGLE CREDIT CARD FROM YEARS AGO, WAS A GREAT MERCHANT THAT I HAD REALLY GOOD RELATIONSHIP WITH, WE WERE SO AT THE FINISH LINE HE TOOK A SECOND ADVANCE with prepayment addendum in short period thinking the sba was gonna pay it offf, then they ruined my relationship with the guy cause he felt like i made it seem like the sba waS GOING THROUGH TO TAKE THE MCA

We do MCA Consolidations via SBA - I work directly with Underwriter at SBA bank.
Call me to discuss

[Jstarr]

They just package SBA's - they are not a direct SBA lender. ( you can reference the SBA Website for approved Lenders.)

https://www.sba.gov/funding-programs/loans

I am at ropes end with these guys. I have a deal working with them, going on 4weeks. He has jumped through every hoop possible. Provided reams of paperwork. We are now almost at closing and they come back with 9 ucc's dating back 20 years. Some of the businesses that filed are not even open anymore.
110k in funding.

My questions are this.
1. Why would you underwrite this and wait till we are trying to close to bring this up. You pull credit right away, ucc's should show up then, Wright? - a good underwriter would have caught this in the begining.
2. How can I possibly clear UCC's that were filed by business that are no longer open? look further down, anyone can file a UCC3 Termination.

Any input would be appreciated.

[skideeppow]

I HAD A 350K DEAL WITH THEM AT THE FINISH LINE THEY KILLED IT LAST MINUTE CAUSE THEY SAID THEY FOUND 2 LATE PAYMENTS TO A SINGLE CREDIT CARD FROM YEARS AGO, WAS A GREAT MERCHANT THAT I HAD REALLY GOOD RELATIONSHIP WITH, WE WERE SO AT THE FINISH LINE HE TOOK A SECOND ADVANCE with prepayment addendum in short period thinking the sba was gonna pay it offf, then they ruined my relationship with the guy cause he felt like i made it seem like the sba waS GOING THROUGH TO TAKE THE MCA

Very similiar thing happened to me on the last deal. Was a disaster.

[Sachip24]

I was told SmartBiz is about 9 lenders and bid for the deal or something like that.