FAQs

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Frequently Asked Questions

Here we answer some of the most common questions.

    • FAQ Verifying Annual Sales

      What if I can verify at least $1 Million in Annual Sales for the last calendar year? If you have verifiable annual sales of between $1 Million – $10 Million, then you will have more options for additional capital and additional products. The additional options require a complex strategy if you are looking to raise a significant amount of capital and there are certain limitations depending on your industry and geographic location.
    • FAQ Team Tangible Real Estate

      Team Tangible Why Team Tangible? Team Tangible provides cash flowing businesses which are tangible because they have 3-5 years of actual financials, employees, and management in place. Team Tangible is a completely unique and forward moving ideology that will create tremendous opportunity for individuals or families that are ready to take control of their destinies, have a willingness to secure their future, and ready to build a legacy for their families. How can Team tangible assist you in building a legacy? Knowledge applied is power-always! We can show you how to flip houses and it becomes a supplement to your current income, make it your full-time job, replacing your income, and how to create positive cash flow that will lead to the development of your legacy. The most unique aspect of Team Tangible is the fact that it was developed and produced by a great financial institution, Blanks Financial Solutions. Blanks Financial Solutions is a company that provides complete customized financial solutions for their clients, which makes the development of Team Tangible a rising star in the industry. Team Tangible has programs designed to help the traditional home owner as well as the investor by providing more options, and real estate strategies that a regular financial institution simply can’t offer. Example 1: You are approved at your financial institution for a home loan and your dreams are just about to come true. You are new to the process, and this will be your first purchase. You know you make a decent salary, and you have saved some money, so you think you are all set. The loan officer advises you that all you need now is your down payment and your closing costs. You ask how much are they? I have some saving’s, that should cover it. The loan officer says your down payment is usually 20% of the total home purchase price. The closing costs are about 3.5%, and it’s a buyer’s market, so homeowners aren’t taking care of those costs anymore. Also, inspection of the home is an additional cost. Financial Institution- Provides a loan to cover your mortgage Team Tangible Provides a loan to cover your mortgage, your down payment, your closing costs, your inspection, the new living room furniture you saw last week, and that flat screen TV for your man cave. Which would you choose? There are many ways in order to purchase a home through our program with Team Tangible! Listed below are the different avenues that can be taken in order to make your home purchase a reality. Cash on hand refers to any money that you may have saved, inherited, or possibly any money that has come from a private investor. Transactional Funding is a specified type of loan that will be defined more in detail later in this guide. A personal loan can be used for any purpose that you choose. The criteria for the personal loan is a minimum credit score requirement (from all three credit agencies) is 680 or better. The other option is that you may also take out a business loan that has different criteria but also based on your credit score as well as revenue that is generated from the business. There are several options available if this is the avenue you decide to take. Either of these options will require a short form filled out to determine how we can assist in funding. The charging of real (or personal) property by a debtor to a creditor as security for a debt (especially one incurred by the purchase of the property), on the condition that it shall be returned on payment of the debt within a certain period. We offer traditional mortgages with requirements that can’t be beat! All programs we offer for mortgages have a minimum credit score of 500! We can provide mortgages in all 50 states with a low 500 credit score requirement OR 100% Finance Program (ONLY for Colorado, Texas, Nevada, California, Hawaii, Georgia and Florida) There are two ways to qualify for this program that is $0 down payment, and $0 closing costs (further explanation required) Fall within the median income of the county that you are wanting to purchase your home within. This is a grant program. If you don’t qualify for the average median income, there is still the opportunity for $0 down and $0 closing costs (further explanation required) Scenario for Mortgages (Residential) Carl has decided he wants a home for his family. He understands that depending on his credit score his interest rate may vary. He came to BFS as he knew what the bank offered, and he wanted to get approved for a larger home. He heard from a friend about the 100% financing program that they have in Texas, and wanted to know what they could do. After speaking with our financial experts, Carl is on his way to home ownership. Earlier the words transactional funding was referenced in the guide. The definition is listed below, as well as an example of how transactional funding works. What is transactional funding? Transactional Funding (Commercial and Residential) This is funding that is broken down into three parts. Let’s use A, B, C; A-The seller of the property, B-Investor of the property, and C-Backend buyer (final owner of the home) Scenario of Transactional Funding The house sells for 60,000. Get a contract on the house for 60,000 purchased the home from (B) for 200,000 B goes to the transactional funder because they have a contract with both A and C (because you can show C as being a pre-approved back-end buyer for the amount that the house is being purchased for. After obtaining an estimate for construction/rehab of 45,000, (B) Must submit the contract with (a), (B) Must submit the contract with (C), and then C- again has to show that he is an approved back-end buyer for the amount of money, the house is being purchased for. Scenario of Extended Transactional funding/Hard Money After I submitted all of the documentation, I have a credit score of 680 (all three across the board), I received a $150,000 from a line of credit. I spent $45,000 of the $150,000 to cover the rehab costs. I then got a rehab loan for 85% LTV, so I made a down payment of $6,750 which is 15% of the $45,000. So that means that 85% of the rehab was financed. Now because all the documentation is submitted, the transactional funder/hard money lender will put up the $60,000 for (B) within 72 hours or more. The contract total cost of the purchase equates to 105,000. The transactional funder/ hard money lender sees that (B) has a monetary spread (105,000 to 200,000), so the transactional funder/hard money lender provides the 60,000 (B). Transactional funding will charge of their money that was loaned to B after closing on the house. After expenses ($60,000 x 5%= $3,000 to transactional funder plus the original $60,000/ plus $45,000 on rehab equates to $108,000 in expenses. This house was sold for $200,000 which leaves a profit of $92,000. Hard Money Loans These types of loans are backed by the value of the property, not by the credit worthiness of the borrower. Since the property itself is used as the only protection against default by the borrower, hard money loans have lower loan-to-value (LTV) ratios than traditional loans. Scenario for Hard Money Loans Jack has a home and a rental property mortgage. He finds another property that will make good income. He can’t qualify for another mortgage so he can acquire the new property. This is an option for him to have more revenue. He takes out a persona loan to take care of the down payment on hard money. When purchasing a property with hard money, one options for funding is 70% to 85% of the loan to value (LTV). Example: If the home is selling for $50,000 but the as is value is $80,000 we can finance 70% to 85% of the $80,000. When purchasing a property with hard money, another option for funding is 70% to 90% loan to cost (LTC). Example: they are selling a house at $50,000 and it needs $10,000 in repairs we can finance 70% to 90% of the $60,000. This is the loan to cost (LTC) When purchasing a property with hard money, another option for funding is 70% to 85% after repair value (ARV). Example: they are selling a house at $50,000 and has $10,000 in repairs. The after-repair value (ARV) on the house is $120,000. The funding will be based on the $120,000 because it’s the value of the property after repairs are completed. Wholesale Purchases/Foreclosures This is purchasing a property and without spending any money rehabbing the property, it is resold to another entity for a profit. There are two ways to purchase this type of property. Either you can utilize a personal or business line of credit, or you can use any available funds. An example of how to purchase a wholesale home is listed below: Scenario for Wholesale Purchase/Foreclosure 1. Find a home that’s worth $50,000 2. The home needs a lot of work, so you are able to purchase it at a lower amount ($10,000) 3. You put no money into the rehab You bought the house for $10,000. You don’t spend any additional money on the home. Now you want to sell the home for a profit. You list the home for sale, and increase the selling price to $20,000. The difference of what you bought the property for and what you sold the home for is your profit. You have a $10,000 profit on this property. Typically, you can put $5,000 to $10,000 on top of your purchase price to leave room for your investor to make money. Any amount over what you originally purchased the home for is profit.
    • FAQ General Questions - Personalized Responses

      Do you know which lenders offer unsecured business credit without full income documentation? Do you know which ones do not report to your personal credit report? Do you know the number one reason why unsecured loan and credit line applications are denied? Do you know which bureaus are pulled by each lender, so you can properly plan the series of applications? Do you know how to pull the cash out of a business credit card without taking a cash advance so that you’ll actually pay 0% but have the cash in your bank account? These are just a few of the questions you should know how to answer. BFS, Inc. does not require any up-front fees, so that you’ll only pay our fees if we solve your problem.
    • FAQ Annual Sales

      What if I can verify at least $1 Million in Annual Sales for the last calendar year? If you have verifiable annual sales of between $1 Million – $10 Million, then you will have more options for additional capital and additional products. The additional options require a complex strategy if you are looking to raise a significant amount of capital and there are certain limitations depending on your industry and geographic location.
    • FAQ Personal Credit

      Will Unsecured Business Lines Credit affect my personal credit report? When properly set up, unsecured business lines of credit do not report to your personal credit report unless you go into a default status.
    • FAQ Business Owner's Concerns

      What is a UCC filing and do unsecured business credit lines require them? A UCC filing is almost like a mortgage against your business. The UCC’s will be seen by other lenders who you apply with in the future. When obtaining lines of credit make sure you find out if the lender will take a UCC against your business or not. This is not necessarily something that should always be avoided but it is something that should be planned and part of a strategy so that you allow the right lenders to utilize UCC’s when they are required by the lender. Technically, a loan or line of credit that requires a UCC from the lender is not “unsecured.” For Small Business Owners what do you mean by Debt Management? Think about it like this. Almost all wealthy individuals, and many who have plans to build wealth, hire financial planners. What do financial planners do? They manage assets. One of the most common problems that business owners face is not in managing their assets but in managing their debts. The more wealthy people have the more debt they have and in order for any business to grow, they must have access to capital (aka Cash). Access to capital means creating more debt and properly creating that debt as well as properly managing that debt requires strategies and tactics that most business owners are not trained and equipped employ. Ask yourself if you have the training and experience to manage debt effectively using the very best strategies that are available on the market today – we’ve been doing this for years and it’s all we do, and we are constantly learning each and every day. How can I get some of these unsecured business credit lines? You’ve really got 2 options. Your first option is that you could hire BFS, Inc. We submit hundreds of business loan applications and business credit applications to several different lenders every month. We know which lenders are lending and whether you and your business will be a good fit for them and we also know how to make sure you have the correct business credit application and credit profile before you submit those applications. Your second option is you can try to do it on your own.
    • FAQ Capital, Collateral & Scores

      How much capital can I raise through the Unsecured Business Credit Program? For each individual, you can raise between $5,000 – $1,000,000,000 and higher. In our program, it’s common for people to get between $40,000 – $60,000 within the first 30 days. We’ve had some clients get approved for as much as $150,000 or more within 15-30 days but $40,000 – $60,000 is more normal. Although it may not all come in the first 30 days, if BFS, Inc. accepts you as a client meet all qualifications, we may be able to guarantee you a minimum of $5,000 and up. Since there’s no collateral what happens if I default or stop making payments? Since there’s no collateral what happens if I default or stop making payments? Unsecured credit lines are obviously unsecured but just remember, there’s still a PG (personal guarantor) who signs for the repayment of the loan. If you default on a mortgage or a car loan, there is obvious collateral attached to the loan that protects the lender. With unsecured credit, you must keep in mind that if you default or stop making payments that the lenders will still do whatever they can to collect their money. So, don’t confuse unsecured with non-recourse. I have a good PAYDEX score isn’t that better? A good PAYDEX score… is a good thing to have… and we suggest that all business owners purposely go after an excellent D&B report. Sometimes the PAYDEX score and D&B profile can be important when going after certain types of unsecured business lines of credit. However, there are other times when it’s completely a non-issue. What are the rates for unsecured business lines of credit? Unsecured credit lines are not typically rate-driven products like mortgages and other long-term forms of financing. Hopefully that goes without saying but, just in case, be sure to keep in mind that unsecured business lines of credit are NOT designed or intended to be used as long-term products like mortgages and nor are they intended to be specific to any one deal, purpose, or instrument like car loans, student loans, and other installment loans. Unsecured business credit, unlike these other forms of financing, can be used over and over and over again for many different reasons and purposes. Although any good thing can be set up poorly and you should ALWAYS know what the rates and terms it’s safe to say that you don’t shop rates on unsecured business lines of credit like you do for mortgages. It’s not that the rates are not important, but they almost never make or break a deal. At the end of the day, the best approvals go to businesses that provide full income documentation (tax returns), have very good credit scores, good liquidity, and appear to be the lowest risk to the lender.  
    • FAQ Credit Partner or Personal Guarantor

      If I have someone else who has better credit than me, can I use them as my credit partner or personal guarantor? Yes. However, be sure to do this the right way. We do not want anything to do with someone using a straw buyer scheme but if you have a legitimate person who is fully aware of the role they are playing with you as your credit partner then we can help you both to ensure that this is executed properly and compliantly. Your credit partner needs your full authorization to borrow on behalf of the business and needs to go through our consultation and compliance phone call which verifies identity and confirms their full knowledge of their role. This is a very good option when it is done correctly and that all parties are fully aware of their roles and that all lender applications are filled out completely and honestly. Ask us for more details if you would like to learn more about working with your Mom, Dad, sibling, Uncle Louie, or any other friend or partner as a credit partner.
    • FAQ Great Credit

      I have great credit, what’s the problem, why can’t I have what I want? Great credit is a good thing. And it will help you in everything you do as a business owner. But good credit alone does not get you across the finish line. It’s really just the beginning. There are many other necessary elements to understand. The right lender needs to be identified, the goal you’re wanting to accomplish, what type of unsecured business credit line is best for your situation, what your company will actually be able to obtain, etc. these are some of the items that must be identified if you wish to obtain unsecured business credit.
    • FAQ Repayment

      Since the repayment is daily, how will I know if I can handle it? Since the approval amounts are based on the cash flow, several factors are considered as part of the approval, including the average daily balance and the consistency of the cash flow. Based on these factors and an analysis of your cash flow, only an amount your business can handle is approved.
    • FAQ Ownership

      We have three partners in the business and we are each 33.33% owners. Do all three of us need to apply and sign the closing paperwork, or can it be just one of us? Can we get approved just in the business name with none of the owners signing? For this loan, at least 51% of the ownership has to apply. In your case, 2 of the 3 owners would need to apply. This product is not approved just in the name of the Corporation. The owners are on the application and then sign on the closing paperwork.
    • FAQ Qualifying

      Can we qualify? If your business has sales, it can qualify. The higher the sales, the more your business can qualify for. In general, the business should have at least $10,000 to $15,000 in deposits per month and make at least 5 deposits per month or gross an average of at least $120,000 a year. The higher the average daily balance is, the higher an approval will be for. A business that deposits $10,000 per month into the account and keeps an average daily balance of $25,000 will qualify for significantly more than a business that deposits $10,000 per month but only has an average daily balance of $1,000.
    • FAQ Credit Reporting

      We have had some slow business credit reporting recently due some of our clients that have paid us late. How closely is the business credit looked at? The business credit is looked at, but it is only a small part of what is looked at that is considered. The business credit score can be somewhat low, and it will not affect the decision or approval significantly in most cases. The business credit has to be significantly deteriorated in order for it to have a significant effect on the decision, or even turn what would be an approval into a decline.
    • FAQ Funding

      How fast can we obtain the funding? In most cases, funding can be obtained within 4 weeks or less. Once you are given the stipulations from the underwriters and you can provide everything back in a timely manner than funding can take place in as quick as 7 to 10 business days.
    • FAQ Treatment of Funds

      Can we use the line again after it is paid down? Yes, your business can use the business bank statement loan over and over, just like a line of credit. In fact, once the line is paid down 60%, your business can draw the remaining credit line, and use it again for its working capital needs.
    • FAQ 6 Start-Up Business

      What if my business is new, can I still get lines of credit? Absolutely. In fact, many of our clients are owners of new or start-up firms or investors who use the funds for investment purposes.
    • FAQ Qualify for Larger Amounts

      How likely can we qualify for larger line sizes later? Very likely. In most cases, line size limits are increased significantly just based on repayment. If your business has increased cash flow during the term of the repayment, line size increases can be dramatic, as much as 100% or more.
    • FAQ Payoff

      Is there an advantage to early payoff? Since this is short-term financing, to begin with, the vast majority of customers do not have the interest to pay off early since the repayment is 6 months or less in many cases. If early payoff does occur, early payoff advantages are limited since the repayment term is limited, to begin with.
    • FAQ More Credit

      Is there any way to get a larger line size? Yes, if your financial statements are strong, please provide your most recent year’s Profit and loss statement or the prior year’s business return. Strong financial statements are statements which have good Gross Sales and net income of $120,000 per year or higher. In addition, if the average balance or average total deposits of your most recent 6 or 12 months business checking account statements is higher than the average balance or average total deposits for just the most recent 3 months, then provide 6 or 12 months. The approval obtained may be higher by doing so.
    • FAQ Terms

      What is the term of the financing? Terms vary, and in most cases are 2, 3, 6, 9, 12, and 18 months.
    • FAQ Repayment Term

      I have not done this type of financing in the past, and I am concerned about the short repayment term. I am worried that I may be able to handle the daily repayment for a while, but that it would catch up to me and I would have problems repaying. Will you work with customers if this issue comes up? Yes. One advantage of this business bank statement loans program is that you do not need to take the full amount approved. Your business can begin with a lower amount that it feels very comfortable with. Once you repay that, you can go up to a higher amount.
    • FAQ First Time

      I have not done this type of financing in the past, and I am concerned about the short repayment term. I am worried that I may be able to handle the daily repayment for a while, but that it would catch up to me and I would have problems repaying. Will you work with customers if this issue comes up? Yes. One advantage of this business bank statement loans program is that you do not need to take the full amount approved. Your business can begin with a lower amount that it feels very comfortable with. Once you repay that, you can go up to a higher amount.
    • FAQ Unsecured Lines of Credit

      What are Unsecured Business Lines of Credit good for? Unsecured business credit lines are great to use for debt management, working capital, startup funding, and almost anything that is not a long-term project. It’s important to understand that, as a rule of thumb, a long-term project is anything over 12-18 months…but this is not true for all situation. It’s a good rule of thumb. However, it also depends on whether you’re utilizing a traditional, bank-draft unsecured business credit line or the credit card model as to the best strategy to employ.
    • FAQ Credit Cards

      Are credit cards Unsecured Business Credit? Absolutely. The properly utilized business credit cards will often cost you less in interest expenses than traditional unsecured credit lines if they are managed properly. Because of this, and because of the growing difficulty in getting traditional, bank-draft unsecured business credit from banks, many business owners are turning to using business credit cards as their primary unsecured business lines of credit. Some, unfortunately turning to the wrong sources.
    • FAQ Tax Returns & Financials

      Will I need to submit my tax returns, W-2's, or any financials? Yes. In most situations, BFS, Inc. does collect your financials for verification.
    • FAQ New Business

      What if my business is new, can I still get lines of credit? Absolutely. In fact, many of our clients are owners of new or start-up firms or investors who use the funds for investment purposes.
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