Why Didn’t I Get Approved?

There are several factors that typically are considered when a credit team is reviewing a business profile to issue a decline or approve decision for financing equipment or providing working capital. There is some flexibility among lenders when considering the different factors but there is a common base that many work from. The lenders with stricter and tighter guidelines are normally the ones offering the lowest rates so they have a narrower risk profile for each decision. The more flexible lenders, which means the ones able to work with higher risk clients, have higher rates; they win some, lose some (client defaults) but are able to maintain their return-on-investment profit margin.

Following are the basic factors to be aware of so you know where you fall and if there are too many red flags then you can decide not to apply for financing and go a different direction. Learning and preparing in advance will help you understand the process so at the end of the day you don’t throw up your hands and say, “Why didn’t I get approved?” These are only general guidelines and exceptions can be made but somehow they will always have to minimize the risk to the lender.

Factor 1: Time in business. This is the easiest to verify since the secretary of state where you live will have the registered business file; you should check and make sure you are in good standing and active. Less than two years puts you in the ‘start-up’ business category which means rates will be higher and the amount you can finance will be capped at $30K, $50K or $100K depending on the other factors. Two to five years in business is the medium range and still requires the owner’s personal guaranty and over five years in business is the ‘established’ category and can get approved without an owner’s guaranty with borrowing amounts only limited by the business’s performance.

Factor 2: Personal credit. For businesses which have to personally guaranty, the owner’s credit score is very important; particularly the younger the business is. Poor, damaged or low scores indicate how the owner might operate his/her business and is a strong indicator of success or failure and potential default. If your credit has issues, a credit repair service should be the first step before applying for any financing. Most credit repair takes at least three to six months.

Factor 3: Cash flow. Bank balances in your business account, personal account, and savings have to be adequate to pay for the new debt along with enough cushion for emergencies. If you deposit $1000 and spend $1000 then there are no reserves for emergencies or new debt even if the new equipment will make you lots of money. Underwriters are looking for cash influx and reserves that can cover business slowdowns, emergencies, etc. The amount needed will depend on the amount you want to finance.

Factor 4: Comparable borrowing experience. Credit looks to see what you have financed in the past; for newer businesses your personal borrowing will come into play. Car loans, home loans, credit cards and similar will be important to see how those have been managed. As a business gets older you will want to make sure you finance even small pieces of equipment and take out business credit cards to help establish business credit history. Some vendors offer financing for small tools and, even if you can pay cash, you should finance it to help build your profile. In the long run comparable credit becomes very important and for many lenders a necessity.

Factor 5: Business credit. Dun & Bradstreet and Paydex are common bureaus underwriters use to review business history. Judgements, liens, pending lawsuits and slow pay history is revealed in these reports. You should request a copy and work to rectify any issues and if a settlement is in the works then a letter validating that should be on file. Credit will always consider a good story to support any issues as long as you have strong documentation. Open liens should be worked on and settled since very few lenders will approve any business with open liens.

There are many other factors a credit analyst will consider but these five are the backbone of most credit decisions. You don’t have to be optimal in all five to get approved but at least two of the five have to be strong. If not, some lenders will allow a family member to co-sign as a guarantor on the loan which normally is a last resort for business owners. A co-signor might allow you to get approved but you still will fall in a higher risk, higher rate category. Overall, you should evaluate where you rate, fix what you can and if you decide to move forward in applying for financing at least you will be better prepared for the outcome.

Can Bankruptcy Help Prevent My Car From Being Repossessed?

According to The Washington Post; “A record 7 million Americans are 3 months behind on their car payments” – February 2019. That title says it all. In other words, if you are filing bankruptcy and have missed your car payments, but you still want to keep your car, you are not alone.

The Credit Union Journal has a recent article in the May 2019 edition titled; “In avoiding subprime auto loans, are Credit Unions shunning their roots?” It turns out that car loan defaults are once again at historic highs. This is a nationwide problem for lenders, and not just locally here in Ventura County or Los Angeles County.

There are legal remedies you can deploy to stop your car from being repossessed. Many consumers do not realize that under both Chapter 7 and Chapter 13 Bankruptcy Law you can temporarily prevent car repossession by your lender. This is because during bankruptcy proceedings the court issues an “Automatic Stay” prohibiting and preventing the lender from repossessing your car. The lender can ask the court remove the ‘automatic stay’ and if the court agrees, the lender may take possession of the car anyway, but this temporary stay may be all you need to get the lender’s attention to work with you and your attorney on a modified repayment plan.

The best way to deal with this situation is to be in contact with your car lender, and it’s best to do that through a bankruptcy attorney, it holds more weight. It also stops the lender from trying to bully you. Your attorney can renegotiate the terms and help you set up a new payment structure thus, allowing you to keep your automobile in a bankruptcy.

Consider if you will that lenders don’t really want to repossess cars, they are not in the automotive business, they are in the lending business, they just want to be paid, as per the original agreement. If they realize that isn’t going to happen, they will weigh their options and consider what’s best for them. Perhaps, a reduced interest rate, reduced balance, or renegotiated terms are better for the lender than a repossessed used car with low resell market value due to wear and tear and depreciation. Face it lenders do not want to lose any more money than they absolutely have to.

Another important point you must remember; the ‘automatic bankruptcy stay’ is only temporary, and if you haven’t been making timely payments, once your case is closed you can expect the lender to demand return of the car or they will repossess it. Also keep in mind that the stay is only good during the bankruptcy proceedings which for Chapter 7 lasts about 3 months or so.

What’s the Best Way to Prevent Car Repossession During Bankruptcy Court Proceedings?

Make the payments
Make up missed payment
Come up with a repayment plan, ask court to approve it
Stay in contact with the lender through your attorney
Ask for some help perhaps paying interest only for a couple of payments
Renegotiate the Car Loan
Ask court if you can buy your car back for its fair market value (Redeeming Your Car under Chapter 7 Bankruptcy Law).
Ask your bankruptcy attorney about ‘cramdown’ strategies in Chapter 13 bankruptcy

What Can You Do If Your Car Is Repossessed Before the Bankruptcy Filing Date?

Ask your bankruptcy attorney to help you come up with a repayment plan so the lender can get the missed payments. If this has happened to you, and if your car has already been repossessed, do not delay. Call your bankruptcy attorney now! That’s probably the best advice of all.

Summing it all up!

You need to know your rights and understand the motivations of your lender. You need a good solid bankruptcy lawyer who works for you, one who has dealt with the local lenders here in Ventura and LA County. An attorney who gets it and has decades of experience. With the right strategy, you’ll be able to keep your car, prevent humiliation, and prevent loss of your transportation. After all, we live in California and you need a car.

fnfnio.info sbvmhu.info hiditio.info kwhhu.info khetio.info cengme.info inviappio.info vcardzio.info vinnnio.info lahuyntme.info datampxio.info mykonoshu.info esdeio.info cogscime.info paylabhu.info soukoume.info citioio.info yemame.info digifitio.info wooinkio.info askdbio.info vacateme.info alikaio.info inwio.info fastlnio.info hivemomio.info socoolhu.info zlawio.info pedleyme.info dotusio.info recoxio.info carregme.info zaeerme.info floreme.info covbeme.info endiio.info petpasshu.info omallme.info commzio.info hometabio.info baxome.info marilleio.info sketchiio.info foxhubio.info jamielame.info emindio.info reaime.info cafebphu.info mimlogme.info nbonkio.info cupbeario.info creddme.info anirutme.info yearhu.info icurkahu.info justteahu.info jinihu.info misshtihu.info abedime.info devbinio.info sabanaio.info gpunionio.info otetehu.info krisame.info iocafeio.info wuworksme.info piensaio.info jasonhuio.info sidsterio.info ysuzme.info azensio.info ebuffetio.info partbitio.info comapio.info seekooio.info woohme.info minthubio.info revotoio.info eglyme.info modopio.info steppime.info krosnyhu.info memedeme.info studiomio.info woofdogio.info takomsgio.info joanepihu.info beszedohu.info qglyme.info steakmehu.info petwashio.info fogbizhu.info hbonowhu.info tabegome.info raedmeio.info zabercame.info fregome.info jobjumphu.info concoctio.info vxdbio.info schlauio.info gdgblogme.info provashme.info ooyaio.info aabbhu.info mqdevio.info fulltakhu.info onvoicehu.info forestrio.info karedoio.info zakazokme.info rkgttrio.info splacehu.info fojoio.info movioraio.info drengonhu.info jnykidshu.info nicebitio.info nailahme.info ygrowthio.info clhwio.info jraphio.info starcvvio.info feedlime.info showitome.info dorahhu.info pepprio.info molgesahu.info budfesthu.info dashfyio.info daichiio.info nemphu.info todaytvme.info corralio.info muunqiio.info evejobsio.info cloudppio.info habboxme.info kaydeeme.info hazbolthu.info curatoio.info clesme.info cautivome.info zactio.info delphiiio.info juntosio.info knroio.info usaexio.info wekiio.info indulashu.info gitdownio.info derickio.info omshime.info joinlabio.info fraxxme.info amperhu.info romefitme.info splintrme.info unnime.info croudio.info atenderme.info snackitio.info invistaio.info ooknowio.info dodeme.info zutoio.info seaapio.info ejabeeme.info slitrio.info jteaseme.info ecomaskme.info dettaio.info onmaohu.info alseshu.info fretvuio.info capisceio.info amiolahu.info btcrio.info ximnetio.info chemonhu.info boggedio.info bekosunhu.info yakovome.info limkme.info helpushu.info hoolihu.info livecutio.info dalienio.info conesme.info agolabsio.info nandelaio.info imdaadio.info datandaio.info wiicanme.info dxyome.info trihooio.info kotekhu.info crccoinio.info deallitio.info gigyio.info venhazhu.info dapplesio.info mogume.info admeshio.info stdapiio.info digniio.info cyrnaio.info unicareio.info tmwrkio.info drygme.info eztpio.info replessio.info pevznerio.info abiosio.info deallabio.info jwebsme.info qvidsio.info ezilyio.info smopethu.info ilicithu.info rivionthu.info helpsyme.info azboukiio.info kluuio.info zomame.info vrroomhu.info airpowio.info sabakaio.info revolario.info atsome.info shumaio.info devradio.info loaiio.info qstoryio.info robokaiio.info digimmoio.info bauhsmhu.info igereme.info yawangio.info nexaiio.info lakolaphu.info tinydevio.info picasesio.info ihracatio.info lluxuiio.info grwrio.info tirkhu.info vaultysio.info gorougeio.info haxerio.info rohwerme.info mexpayme.info cashioio.info iochipsio.info lisansio.info geonuvome.info kjgejfme.info minblogme.info myqueenme.info gamiome.info pecazzhu.info vcoffeeme.info datchatio.info shkolaio.info banhangme.info livefyio.info driveithu.info livemsgio.info gtuio.info mindledhu.info alzohu.info noauthio.info eosbpiio.info yourceme.info kaayakio.info highiqio.info exbeme.info nznetio.info speleio.info soupifyio.info dumapokhu.info mieguime.info vinofoume.info woodlotio.info listickio.info nehezhu.info weryberhu.info aromaxme.info lablueio.info ecoegghu.info bookeatio.info bnprthu.info pluckyio.info gamesioio.info eikonhu.info bkcfundio.info moyoshime.info xarvio.info hyadesme.info logipadio.info huestonio.info achatio.info famulusme.info hoolaio.info biskutio.info xploraio.info myyanme.info duileme.info hmrctaxme.info lenohu.info sasoldhu.info swthme.info nexusithu.info hihaio.info lrpeme.info furjeszhu.info cotevame.info thedudehu.info korourio.info dreemerio.info jsapio.info jayanio.info moraiio.info testdenio.info nmapio.info btechcoio.info onlimio.info bitfrogio.info pgamingio.info spatzio.info sersecio.info pimitio.info jpbrme.info renkyio.info tphuntio.info nexfuelio.info hotelohu.info warateme.info skolopome.info decaxio.info dominiaio.info foyinme.info poranme.info wereonio.info luzorio.info erpolhu.info hawwelme.info privpnio.info efemme.info szeszohu.info gordieme.info accendme.info aergdame.info marooio.info roomoteio.info shokensio.info onchatio.info boschsio.info inkinkio.info chimerio.info beloogaio.info subvibehu.info gobearsio.info uxario.info dananethu.info zeolitme.info skolopame.info ignme.info medwaio.info chasemeio.info bpfeszthu.info patchitme.info salivaio.info dkmoonio.info informdio.info enconarhu.info waipaiio.info flpbolthu.info drcakehu.info jqoome.info qulertio.info menhvgme.info lumnioio.info breaio.info slithorio.info ighackme.info yuyueio.info shulime.info ecoflowio.info jahadhu.info bformahu.info phutureio.info bybalime.info ampacheme.info fetismhu.info medalabio.info arkadio.info vidmedio.info gmodeio.info huanuoio.info davepio.info rxghu.info jimmiio.info raktorio.info fathymio.info ngaome.info trisame.info guzinaio.info airvendio.info yakovpme.info kosoveio.info beongme.info gkerio.info mnsetupio.info maryhu.info ratebitio.info wlgxio.info fetisemhu.info kirukume.info nopejsio.info aqaphu.info geepyio.info etflabio.info vionio.info shedzio.info frombitio.info morevio.info bujokahu.info cmeshio.info sclkio.info kupongio.info myhntio.info sponkyme.info seekbitio.info shiterio.info liveqio.info saverhu.info cdnflyio.info ablabsio.info zelmaio.info cartaome.info geldentio.info famcamio.info areabitio.info omofomoio.info relayoio.info giakimme.info zapppio.info slasherme.info dmttechio.info kpszthu.info manavio.info suntaome.info theasasio.info mostbitio.info lililme.info swjoio.info mphrhu.info betohu.info adsplayio.info mattasio.info jsahu.info pretorio.info zahaloio.info mayapayme.info alvbio.info floadio.info slippyio.info zakiyahme.info atomisio.info umhhu.info clume.info logobitio.info anyepio.info furbabyme.info lohitboio.info gexioio.info zadanome.info taijuio.info modebitio.info remueio.info cjenmio.info dubzooio.info collabiio.info userexio.info ttdrainhu.info sigattahu.info qkxyio.info permame.info subabaio.info sheriame.info formbitio.info iohereio.info magenio.info fenfaio.info rlmpio.info legixio.info benlume.info offlanyhu.info inpushio.info dialoqio.info alnaqime.info relybitio.info podtubeio.info vetlinehu.info vmtermhu.info cortxio.info exseedio.info gudmoodme.info liilogme.info entkerhu.info trimlyio.info kukaioio.info trilipohu.info umihu.info nackio.info finebitio.info frccio.info ecopayzio.info mecardzio.info lentionio.info jindonme.info nowdbio.info weixueme.info biovivaio.info rzzrio.info blomaio.info doucujme.info crewehu.info boschhio.info goalbitio.info docolabio.info dcleario.info heppieme.info apluscome.info hukamaio.info myfinchio.info easyfiio.info foxkissme.info gooduiio.info ujfoghu.info zenbnbio.info erialio.info haddyio.info synthcoio.info skfanume.info hibuddyio.info zcunio.info swoodhu.info dellanahu.info qokkaio.info yerussehu.info lifequeio.info stammime.info ppomio.info gplnkio.info askeyio.info distyio.info eosuio.info edgebitio.info spyazio.info hydriveio.info kkvhirhu.info freefitio.info rscgime.info gooruio.info boschmio.info appsioio.info totextio.info sanminahu.info ragtagdme.info playlyio.info uptokio.info oldtime.info vidtikio.info emerlyio.info havebitio.info skfanpme.info chboio.info codlio.info aseleraio.info ottasio.info cxmsio.info nidosio.info kcallio.info epikahu.info pydoraxme.info labnoteio.info kebekehu.info tomkohu.info tubtimio.info autosimio.info chanjio.info marudahu.info doapkme.info ironickio.info gonoteio.info vavinio.info ncisme.info ddjhu.info yakovhme.info pugfixio.info veeraio.info futuryme.info cotfeme.info annecyhu.info exwalio.info abctaio.info clarumio.info gattihu.info tokrenio.info rbirdio.info acbxme.info spiritome.info thednsio.info kioime.info joblabme.info yyhuame.info theneelme.info kakaappme.info bangumiio.info capisame.info biopackme.info ohlalame.info bestcjwhu.info mypollio.info maleepme.info epicnowio.info proimelme.info copcoinio.info artbiohu.info whazatio.info xemgiame.info tivifehu.info flybymeio.info mardaio.info koteghu.info syaasio.info bydiio.info jiangjkme.info nkdyio.info eswrme.info upbyteio.info ipscanio.info djsivohu.info devtronhu.info rivineio.info wwecoinio.info insifaio.info abddme.info eksserhu.info nemeanhu.info picoleio.info plunderme.info acgcnme.info fortnitio.info slevenio.info griffenio.info enlytme.info chamanxio.info javaerio.info yakovtme.info hazwebhu.info itcodeme.info iflowerhu.info nivrixme.info vulkonio.info aruhazahu.info ppgephu.info getqaio.info zuulio.info fmlinksme.info eskribio.info dreamdbio.info orzsehu.info messionio.info camaroxio.info kingvpnio.info rovieio.info aiboxio.info inixiome.info hoxhu.info myrsoio.info vopsterhu.info getpdfio.info barocome.info katkerhu.info boschaiio.info espereme.info sovyio.info widderio.info qcatio.info tboneme.info thetreeio.info vbklubhu.info egardenio.info opencrsio.info adtestio.info coplusio.info slitehrio.info collabrio.info vermotme.info klaszikhu.info cspkhu.info ipneme.info neokidsio.info stadhu.info overadsio.info bubblitio.info sigynio.info gosharkio.info delobosme.info cthuio.info ackrollio.info bossieio.info arxteamio.info clipttio.info ooiiio.info xiosme.info asticio.info bleetzio.info rizmome.info diabexme.info skiryhu.info jobbestme.info crooveio.info ezupio.info majorsio.info rdcongoio.info gotousme.info nabavkame.info aminityio.info disdainme.info soumeiio.info uxutio.info flexihu.info mokanoqme.info zaiame.info vkjio.info paychexio.info kbstario.info lanouhu.info safewrdio.info martyrio.info asagaio.info boschesio.info haulieme.info pureaudio.info kapufahu.info digivetio.info lecidaio.info ampullahu.info getalexio.info inmutaio.info wringerio.info townerio.info nicecatme.info romsaeio.info chloudme.info ndflio.info axyyhu.info fredbotio.info vroumme.info alisodsme.info mogvlio.info kaifaio.info totemdsio.info playpodio.info sfzeroio.info megazoohu.info mmogaio.info mbrdnaio.info wintrio.info rensio.info wfhprome.info appruptio.info germbesme.info taiveme.info yuxiqinme.info robovalio.info yuanzxme.info luduxio.info breame.info mihranio.info onfindme.info openqio.info ygvio.info ashlimio.info mokanomme.info jerwyme.info volletio.info tretbarme.info veisame.info onlybitio.info estrestme.info diadio.info dunmarkhu.info tacitme.info bigleekio.info zencapio.info aprenhu.info westappio.info cbrflkme.info icaroshu.info haganahio.info nettoppio.info aszalonhu.info amanthame.info doddsoio.info gibitio.info vaersio.info sliponme.info aktieio.info zhyarme.info stepienme.info hemphutio.info redlaneio.info nuceio.info fudokihu.info vqlio.info wertunghu.info baeumio.info drybikeio.info webotsio.info virezio.info oserverio.info csuflakhu.info atvrio.info alitherio.info videoupio.info ellisame.info forevrio.info bifoio.info swopsio.info hogombahu.info tobbitio.info tutitio.info smartosio.info skoloptme.info jooelme.info ventiveio.info stadiahu.info hullaio.info teritahu.info medopadio.info gamenowio.info isazobume.info chainvcio.info nudgeaiio.info pliveoio.info incomixio.info neotexio.info noubaio.info itformeme.info maytinhio.info xsendio.info webwarehu.info clicoio.info suchirome.info triptvhu.info backpadio.info swigoldio.info yangaio.info sletherio.info ytproio.info kychainio.info autraio.info asmahme.info squidlyme.info kontichu.info znhyio.info trendxsio.info versario.info eduexio.info romellome.info toolforme.info shoezenme.info piegio.info suntesthu.info pissoirhu.info xeckio.info biofabio.info ausieoio.info torieme.info zhoufeiio.info tutplexme.info hcetme.info opstekio.info flottyio.info slotherio.info simeraio.info teqsoulhu.info subotame.info texiangio.info gamelothu.info gritbotio.info tjdhu.info wangshyme.info edocuhu.info videorio.info repzio.info aihiio.info esoukio.info pwmlio.info sicklyio.info qgeme.info misitehu.info bitcnyio.info thfqme.info getcallme.info medovyio.info moidume.info harimio.info struttme.info krizolihu.info oreskosio.info hlsxme.info dzunovme.info mistypeio.info logappio.info mptsio.info brcoinio.info biteumio.info wzzio.info deppaasio.info yakovmme.info piggiio.info takuwoio.info zniaio.info filmivehu.info noviaio.info sincicme.info leokio.info hooraio.info svgcio.info turkizhu.info hottubeio.info ixinweime.info lqcio.info bitbeiio.info gotoyoume.info misiuio.info kataapphu.info seappio.info mokerio.info brocodeio.info mydpadxio.info bonsiteio.info ddplayme.info itvaio.info semjobsio.info atforumme.info avinfohu.info chayebme.info bitideaio.info nigoio.info gygbhu.info amaretio.info mokanotme.info vdvnio.info sukieme.info almagroio.info wiigoio.info wifimolio.info lifeqsio.info abcsaphu.info stokzio.info etaehyame.info hbghu.info boxkitio.info jlvosme.info igniqio.info ezokaio.info katapphu.info lordbitio.info biosongio.info unterio.info seekitio.info invzme.info skfanhme.info cforio.info loannowme.info gurujme.info osayaio.info kanttio.info abcsbohu.info anhltme.info pendiio.info emittio.info igetvhu.info asusroghu.info houtio.info bettebame.info tlldsio.info egyutonhu.info twofacehu.info ladanhu.info untactme.info vettawme.info evoluoxio.info