A group of business owners created an algorithm in their insurance business that dramatically increased sales while lowering costs. They wanted to take this algorithm and develop it into an app for purchase. Without real estate as collateral, any normal bank wouldn’t approve a loan – SBA or otherwise (this is typically more attractive situation for venture capital.) However, their existing insurance business was super strong and cash flowed the loan even if the app failed down the line. Thus, by using the business and the three partners as guarantors, we were able to get it the loan done.
While it is rare, most banks can only do working capital AKA “airball” loans for about $500,000 to $1 Million. Unlike the bank, Commercial Capital Ltd., FL has several NON-BANK affiliate funds that can lend up to $5 Million, unsecured.
Maybe you or a client have been denied by a bank – and you are down because the bank told you, “the SBA denied your loan.” The chances are that it was the bank – NOT the SBA – that denied the loan. Most of the major SBA players are PLP lenders which means they have delegated underwriting authority for SBA: they approve the loan, then register it to get it an SBA loan number right before closing. It was likely the bank denied your loan (and it never went to the SBA for approval.)
But why would the bank pass the buck and say that the SBA denied it? Because it easily shifts the blame and is easier for that sales rep from the bank to face the client – but it is rarely true. What is more likely is that your loan just does not fit the parameters of that bank. There is no way for you to know the parameters of the different banks as no bank advertises their credit committee tendencies. You can only know those tendencies if you send them lots of loans and see how they actually underwrite (like we do.)
Sending out hundreds of loans per month to be underwritten for more than a decade, we know which banks are keen on what. Our experts can take the strengths of your file and place it with the fund that is MOST likely to do that loan. In so doing, we close over 80% of our pre-approvals. That is twice as high as the average bank.
IF you or someone you know is struggling to get approved for an SBA loan, don’t give up! Make one more call to Commercial Capital Ltd., FL at 888-959-1648 or submit your loan inquiry for a complimentary pre-qualification review. If we can do it, we will have your terms in writing within 48 hours.