[TB-Commercial]

Hey Guys!

Hope you all had a nice weekend. I have a quick question- are there any term loan lenders (not MCA) that require only 6 months in business?

[LoanMe]

LoanMe only requires (2) months in business. 60 days transaction history on a business bank account.

[TB-Commercial]

LoanMe only requires (2) months in business. 60 days transaction history on a business bank account.

Hi, and thanks for the response! I do currently have a relationship with LoanMe. But I have a few issues that have been confusing me lately and maybe you can help. I've submitted several clients, and after they were approved for 1 amount, and went through the whole process of sending docs, etc...the amount was changed and dropped majorly. I'm talking like from $50k to $15k on a 700+ credit deal. The answer I received was that after review, the monthly income was not what we expected. But the statements were given and used for underwriting the first time so I'm not sure what changed? This has happened with several deals so I'm a little hesitant to send more deals. You guys are very nice, so please don't mistake this as a hit against your company, I'm just seriously at a loss for how to work with you. It's made my reputation look bad with my clients as well, especially considering they have to talk with a LoanMe agent and not myself, the introducing broker who they've established a relationship with.

Please let me know how we can work together, as I love your platform and have many quality deals to send to you.

[brokerCompany]

no one else will do term loans for startup in the high risk industries.
you can try accion.org
or the bank credit cards
Loanm does everything by computer "algorithm" If the computer does not like it the deal wont happen. You can never speak to anyone there

[Seekcapital]

**Startup Funding**

Seek Capital provides funding to startups and early stage business owners.

- Deep roots in the MCA space, servicing many MCA firms for their startup leads
- Perform soft credit pull with all 3 bureaus (no need for client to jump through hoops to sign up to 3rd credit monitoring)
- Automated underwriting
- Strong internal sales team
- Direct bank relationships for higher approvals
- Real time reporting portal
- Client doesn't just walk away with credit cards, Clients have the ability to transfer funds from their credit card account directly to their checking account while maintaining 0% intro rate
- Dedicated Account Managers for each client
- Truly a superior client experience

For direct contact: partners@seekcapital.com

[LoanMe]

Hi, and thanks for the response! I do currently have a relationship with LoanMe. But I have a few issues that have been confusing me lately and maybe you can help. I've submitted several clients, and after they were approved for 1 amount, and went through the whole process of sending docs, etc...the amount was changed and dropped majorly. I'm talking like from $50k to $15k on a 700+ credit deal. The answer I received was that after review, the monthly income was not what we expected. But the statements were given and used for underwriting the first time so I'm not sure what changed? This has happened with several deals so I'm a little hesitant to send more deals. You guys are very nice, so please don't mistake this as a hit against your company, I'm just seriously at a loss for how to work with you. It's made my reputation look bad with my clients as well, especially considering they have to talk with a LoanMe agent and not myself, the introducing broker who they've established a relationship with.

Please let me know how we can work together, as I love your platform and have many quality deals to send to you.

TB,

No worries at all. We completely understand how this can be concerning. The last thing we want is for you to look bad with your clients. Lets work together to make sure everyone is on the same page with our pre-approvals and final approvals. Because of our speed of funding (as soon as 4 hours) we have separated duties from the ISO partnership team, LoanMe agents, and Underwriters.

Allow us to try to address this briefly here. When a file is submitted to us as you know a LoanMe agent reaches out to your borrower directly to take an application over the phone on a recorded line. When the agent is speaking to the borrower they do ask what their monthly income is over the last 2 months. This number is then entered into the application and with the borrowers authorization the application in run. This gives the pre-approval and places the borrower into one of our 6 set tiers and buckets- based on the applicants credit profile and income entered into the application. For our product witch carries mostly 10 year terms, its very important that we score the individual borrower first and then the business a close second.

Once the file is pre-approved the docs are then sent to UW. If the borrowers business bank statements reflect something different then the borrower told our agent over the phone, then this is how the amount could decrease or increase. LoanMe will look at and use the lower of the last (2) months gross business deposits as the income number. Underwriters are the ones that dive into the bank statements to ensure all of the deposits are true business income. Additionally if there are outstanding balances, these could be deducted as well depending on the Tier the file fell into.

LoanMe agents take on average 15-20 applications a day, so for the speed of funding and the quickness of our process the Initial agent that takes a phone application with your borrower is not looking at the bank statements like an Underwriter would. They may glance at gross deposits, but cannot dive down into the detail of those deposits and calculate exact true business income. This is the Underwriters job after the borrower is pre-approved.

We apologize if things may be getting lost in translation here on a forum, so we invite you to call us directly to go over the specific files you are referring to. I'm sure we can come up with a logical explanation based on our program guidelines and what happened to these files. This will ensure any future files you submit will have the proper expectations going into an application call with LoanMe.

Please give us a call at 949-535-7798.

Thank you,

[TB-Commercial]

Thanks for your response. And while I do appreciate you taking the time to provide such a comprehensive explanation, I'm still a little foggy on making sense of certain parts of the process. For example, the partner portal provides room for the statements to be uploaded, yet aren't considered when or before taking the application over the phone? Most of what you stated is the the same information I've been told over phone every time this has happened. For such a huge drop in approval amounts, (or even a decline in some cases) I just feel like it's a huge risk for me to submit deals with there being such ambiguity in the underwriting process.

I like to learn my lenders intimately, what their sweet spot is, and submit ONLY those type of deals to them. And although I'm still a little concerned, I'd certainly like to spend more time talking with you and seeing if I can grasp your concept a bit more. I will note as well, there's one rep that actually takes the time to discuss my deals and make me feel like a true 'partner'. And I appreciate his time greatly. I'll be in touch.

[MCAVeteran]

One of the challenges out there are soft offers upfront and final underwriting once contracts come in where detailed review is placed on the file. This setup has a lot of flaws that can lead to lower offers after contracts are signed, declinations after discovery of issues not caught initially, and, upset customers and brokers on both sides left explaining what happened. Because of the large amount of submissions that arrive daily to funders, this is the typical process for most. However, some have different process and its important upfront, while your engaged in enrolling as an ISO, you ask all detailed questions about process, timelines, expectations from app to funding. This is VERY important to understand. Everyone wants your deal, but, only certain funders will actually provide you with a smooth and seamless process start to finish. Just some feedback for peeps out there shopping funders. Ask about conversions, Ask about once contracts come in, what takes place and how often changes are made and what % of contracts actually FUND. You may not always get the honest answer, but at least you asked to use as a reference later on. Devil is in the details