Hybrid financing is great for someone just starting a business or have had a business for a while but just have not established any business credit.
No financials (example bank statements or tax returns) are required when applying for Hybrid Financing. To get approved for Hybrid Financing, the lender looks at your personal credit. If you do not have great personal credit, you can have someone who does have great personal credit be the guarantor. These funds can be used for anything in your business, like marketing, advertising, inventory, bills for the business or payroll. The business does not have to have credit, collateral, or assets to qualify. This type of financing is strictly based on personal credit.
This type of financing does report to the business credit bureaus, so it does help build the business credit. You can get up to $150,000. The amount is determined based on the limits that you already have on your credit report.
Here are the requirements when the lender is looking at your personal credit:
-Personal credit score 680 plus on all 3 bureaus
-Utilization needs to be 40% or less on each revolving accounts
-No more than 4 bank inquiries per bureau in the last 12 months (auto loans and mortgages are not included)
-No more than 3 unsecured accounts opened in the past 12 months
-No bankruptcies
-No open/unpaid collections or judgments -No late payments in 2 years
-No charged off accounts
-Must have a minimum of 2 open revolving accounts with $5,000 limit or higher, with 2 years of history or more
There is no upfront application fee but the lender will include at least an 8% funding fee upon approval. For more information go to
www.exclusiveprocessingandconsulting.com for a free consultation or to fill out a form for a pre-approval, which is a soft pull on your personal credit.
