Business MasterCard
Does PACU require Personal Guarantee?
Yes!
What is an 'Overdraft'?
An overdraft allows the individual to continue withdrawing money even if the account has no funds in it or not enough to cover the withdrawal.
Subject to penalty of 1% of balance if the loan is paid and closed during the first 3 years.
What is a Prepayment Penalty.
What is a Secured Business line great for?
1) Establishing or re-building business credit.
2) Supplementing cash flow.
3) Funding new opportunities.
What are some disadvantages of Unsecured Business Loans?
1) Higher Interest Rates.
2) Good Credit Required.
3) Lending Amounts Are Often Smaller.
Are Personal & Business tax returns required?
No, Personal & Business tax returns are optional. However, additional documents may be required and will be requested by lending.
What is the Minimum Loan Amount for Business Overdraft LOC product?
Minimum of $1,000.
What are some eligible collateral types?
Commercial and Residential properties located in California and Texas only.
No Land only financing.
No Homestead properties (Texas Only)
What are the minimum & Maximum loan amounts for RE Secured Business LOC?
$50,000 - $500,000
What are 3 Benefits/Advantages of Unsecured Business Loans?
1) No collateral requirement.
2) Credit is a reusable resource.
3) Unsecured Business loans are usually quicker and less complex than their secured equivalents.
Does Business MasterCard have Annual Fees?
Yes! $50
Does Business Overdraft LOC have Annual Fees?
No! It does not have any Annual Fees.
Which businesses are NOT eligible?
Speculative firms or special entities, gambling concerns, Lending or investment concerns, Business owned and/or operated part by CEO or any VP of PACU, Pyramid sales organizations and other high-risk ventures, Business located in foreign countries, Illegal businesses, restaurants.
What is the term for RE Secured Business LOC?
20 Years (draw period of 5 years and up to 15 years repayment period).
Personal & Business Tax Returns are _______ for businesses with ages of 0-4 years, and _______ for businesses with ages of 4+ years.
Optional, Required.
What is the Maximum Loan Amount?
Depends on the age of business
0-2 Yrs : $5000
2+ Yrs : $10,000
4+ Yrs : $15,000
6+ Yrs : $35,000
What is the Maximum Loan Amounts for Business Overdraft LOC?
Depends on the age of business
0-2 Yrs : $5000
2+ Yrs : $10,000
4+ Yrs : $15,000
6+ Yrs : $25,000
What are eligible uses of proceeds?
Working Capital, Machinery and equipment, Furniture and Fixtures, Leasehold Improvements, Building acquisition, Business Purchases, Debt consolidation.
Can RE Secured Business LOC be used as a source of overdraft protection?
NO! It cannot be used as overdraft protection.
What are the Maximum Loan Amounts as well as the Maximum Loan terms?
Depends on the age of Business.
1) 0-2 Years, $10,000, 18 Months
2) 2-4 Years, $25,000, 24 Months
3) 4+ Years, $30,000, 36 Months
4) 6+ Years, $100,000, 60 Months
What are 5 Documents required for submission of Business MasterCard application?
1. Loan Application
2. Personal Financial Statement
3. Business Debt Schedule
4. Borrower Vesting Information
5. Business Entity Documents
What are 5 Documents required for submission of Business MasterCard application?
1. Loan Application
2. Personal Financial Statement
3. Business Debt Schedule
4. Borrower Vesting Information
5. Business Entity Documents
What are some advantages of a secured loan for a member's business?
1) Represents a lower risk for the lender. Lower monthly payments for members.
2) Larger amounts can be borrowed, and it will usually be possible for repayment periods to be longer.
Personal guarantee is required for all business owners owning ___% or more of the business.
20%
What documents are needed to apply for an unsecured business loan?
1. Business contact information.
2. General business information.
3. Ownership information.
4. Annual revenue estimates.
5. Bank statements.