Are you a small business owner in Birmingham Alabama that is having difficulties getting approved for a loan?
Our specialty is what is called a “no doc loan”. It is a type of loan where the file is underwritten using the gross income of the business, and not the net income. So if you generate a lot of revenue, but most of it is written off, leaving you with little net profits, it isn’t a problem for us!
We understand that new businesses, or businesses making large renovations and changes, typically re-invest most of their income back into their business. This leaves you with little net profit at the end of the year, and makes it harder for you to get a loan.
Typically, when people have high monthly cash flow, but low adjusted net income at the end of the year, they are forced to get what is called a “factoring loan” or an “account receivable loan”. They have to show 6 months of bank statements and the bank gives them a loan based on that. The problem with this is that if you borrow $25,000, you will pay back $37,000 after 6 months. The interest rates these companies charge is sky high! Once the 6 month loan is paid off, then you have to do it again.
Our program is a stated No Doc program, so if you told me you made $100k or $200k last year, then that is the number underwriters will use. By using your yearly income to qualify you for a loan, you will get more money and much cheaper rates. The difference between us and factoring companies is that our rates are low, our terms are long, and we have no pre-payment penalties. They do! Our loans are simple interest, meaning they don’t change and your payment is once a month, not once a day like a factoring company.
So if you are having troubles getting a loan, please contact us! We would love to speak with you and will do our very best to get you a loan you are happy with! Fill out the form to your right, and one of our representatives will get back with you soon.