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02-09-2018, 09:39 PM #1
- Join Date
- Apr 2013
- Location
- Basalt CO
- Posts
- 867
Nothing smart about Smartbiz
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.
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02-10-2018, 08:16 AM #2
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
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...
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02-10-2018, 09:42 AM #3Karen37aGuest
Edit*
Pm me for a letter to removeLast edited by Karen37a; 02-10-2018 at 10:23 AM. Reason: edit*
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02-10-2018, 11:35 AM #4
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]
Last edited by Jstarr; 02-10-2018 at 12:31 PM.
Jerry Starr
Insource Funding
433 Plaza Real,
Boca Raton, Fl 33432
P: 800-805-3391 Fx: 561-270-6895
insourcefunding.net
WHAT WOULD YOU DO " IF " YOU HAD THE CAPITAL
◆ 50% LTV - No Fico Required
◆ 90% CLTV on Purchases
◆ Investment Residential / Commercial Properties
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02-10-2018, 10:20 PM #5Disclaimer
This message brought to you by:
CraaaCraaa Radio ®
http://debanked.com/merchant-cash-ad...nce-directory/
World of MCA
E.V.P Business Development
___________________________
"Success is a lousy teacher. It seduces smart people into thinking they can't lose."
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02-12-2018, 04:53 AM #6
- Join Date
- Apr 2015
- Location
- Louisiana
- Posts
- 299
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.
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02-12-2018, 05:49 PM #7
- Join Date
- Apr 2013
- Location
- Basalt CO
- Posts
- 867
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02-12-2018, 06:54 PM #8
- Join Date
- Dec 2014
- Location
- Quogue, NY
- Posts
- 1,108
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..
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02-13-2018, 05:35 PM #9
- Join Date
- Apr 2013
- Location
- Basalt CO
- Posts
- 867
so who else can i use for SBA?
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02-13-2018, 06:56 PM #10
- Join Date
- Dec 2014
- Location
- Quogue, NY
- Posts
- 1,108
PM
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02-13-2018, 07:59 PM #11Disclaimer
This message brought to you by:
CraaaCraaa Radio ®
http://debanked.com/merchant-cash-ad...nce-directory/
World of MCA
E.V.P Business Development
___________________________
"Success is a lousy teacher. It seduces smart people into thinking they can't lose."
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02-13-2018, 09:02 PM #12
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.Last edited by CraaaCraaa Radio; 02-13-2018 at 09:05 PM.
Disclaimer
This message brought to you by:
CraaaCraaa Radio ®
http://debanked.com/merchant-cash-ad...nce-directory/
World of MCA
E.V.P Business Development
___________________________
"Success is a lousy teacher. It seduces smart people into thinking they can't lose."
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02-14-2018, 02:45 AM #13
- Join Date
- May 2016
- Posts
- 29
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.
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02-14-2018, 08:02 AM #14
- Join Date
- Dec 2014
- Location
- Quogue, NY
- Posts
- 1,108
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
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02-14-2018, 09:36 AM #15Disclaimer
This message brought to you by:
CraaaCraaa Radio ®
http://debanked.com/merchant-cash-ad...nce-directory/
World of MCA
E.V.P Business Development
___________________________
"Success is a lousy teacher. It seduces smart people into thinking they can't lose."
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02-14-2018, 01:48 PM #16
SBA is so much fun!
(said no one ever)Jonathan Kohanoff
B.R.E. #01962090
Diamond Business Loans
Beverly Hills, CA 90211
jon@diamondbl.com
www.DiamondBL.com
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02-15-2018, 02:38 PM #17
- Join Date
- Aug 2016
- Posts
- 118
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
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02-15-2018, 03:04 PM #18
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,993
Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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02-15-2018, 03:44 PM #19
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
Jerry Starr
Insource Funding
433 Plaza Real,
Boca Raton, Fl 33432
P: 800-805-3391 Fx: 561-270-6895
insourcefunding.net
WHAT WOULD YOU DO " IF " YOU HAD THE CAPITAL
◆ 50% LTV - No Fico Required
◆ 90% CLTV on Purchases
◆ Investment Residential / Commercial Properties
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02-15-2018, 05:30 PM #20
- Join Date
- Apr 2013
- Location
- Basalt CO
- Posts
- 867
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02-15-2018, 06:16 PM #21
- Join Date
- Jan 2014
- Posts
- 1,380
I was told SmartBiz is about 9 lenders and bid for the deal or something like that.
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