Frequently Asked Questions
The maximum amount of funding that can be obtained is based on a number of factors; credit history, location (city and state) purpose of the loan, etc…
Credit history is a very important factor when looking at the amount of money that someone is applying for. While credit scores are a factor, they are not the most important. Initial Lending Group is looking for clients with a responsible credit history. Let us use this example: client A has a credit score of 780 and client B has a credit score of 689. Client A has credit for one year with their highest credit card limit being $2,000. Client B has credit for twenty years and their highest credit card limit is $30,000. By looking at the credit score you would assume that client A has much better credit. But nothing could be further from the truth. Client B will get more money than client A.
Location also plays a big part in how much a client is able to get funded. Certain locations have better credit providers than others. The amount of money that you may receive will depend on what credit providers are available for your location.
The purpose of the loan plays a part as well. Credit providers assess risk when deciding on what amount to lend out. A Client using funding for home improvement will get more than a client looking for funds because of a hot stock tip.
Income will also determine how much you will qualify for (usually not the case for Business Loans). Credit Providers want to know that you will have the ability to pay the loan back. All things being equal, if someone is making $25,000 (the minimum income required) and another $110,000 obviously the higher income will be able to get more funding.
Initial Lending Group does not have any kind of upfront fees at all. We strongly believe that a reputable company will not charge any fees upfront.
Initial Lending Group’s fees depend on which program we set you up with. Our fees are paid upon receipt of the funds. Initial Lending Group chooses the option to be paid by the client. By doing this we maintain having the customers best interests in mind while not increasing the rate to get paid directly by our credit providers. By getting paid by the client directly we maintain no risk to the client; if something goes wrong and the borrower is not able or does not need the funds anymore they are not bound to take it.
This enables Initial Lending Group to get the best rate for our customers that their credit will allow. Just 1% on the backend of a loan will greatly exceed our fee. Here at Initial Lending Group we take pride in putting our customers’ interest ahead everything else.
Keep in mind that our fee is the only fee that will have to be paid as well. Any fees associated with a loan/line of credit will be deducted from our fee. Initial Lending Group assumes all of the risk.
Initial Lending Group offers unsecured loans for business, startup business and personal needs.
Unsecured loans are loans in which no assets are pledged (no collateral). Unsecured loans are also known as signature loans because they only require your signature to get funded.
Initial Lending Group, is a Loan Placement and Consulting Firm.
Initial Lending Group is not a direct lender. We set clients up with credit providers that will give them the maximum amount of funding through a variety of factors. Factors include but are not limited to: personal credit score, business credit, credit history, type of business, use of funds, etc…
Initial Lending Group’s main goal is to get the client the amount of money they are looking for. Without the amount of funding the client needs, interest rates and other factors are meaningless.
Initial Lending Group does not approve loans.
Initial Lending Group is a Loan placement and consulting firm. When a client is prequalified by Initial Lending Group it does not guarantee approval. What is means is that we feel that there is a better than likely chance that we will be able to get you approved. While our success rate is high, it is not 100%.
If you prequalify with Initial Lending Group, while you should feel good, you should not go out and start writing checks for the amount that we feel you may qualify up to.
The main difference between loans and lines of credit is that a loan has a fixed payment and a line of credit payment is a percentage of the balance.
A loan is check payable to you/your business in which you will have to deposit the whole thing to have access to the funds. Loans have a fixed interest rate and your payment will be the same exact amount every month for the life of the loan.
Pros: Fixed rate, same payment every month, rate will never go up
Cons: Can not reuse, higher rate in most cases, have to use the whole amount at once, will have to pay interest on what you don’t need right now, smaller amounts
Clients who ask for a loan are usually looking for debt consolidation.
Lines of Credit
A line of credit comes in the form of a book of checks and can be used as needed. Lines of credit have an adjustable rate and your payment will be a percentage of your balance.
Pros: Lower rates, can reuse the money that you pay back, can get increased over time,
Rates might decrease, only pay interest on what you use, higher amounts.
Cons: Rates might increase
Clients who ask for a line of credit are usually any type of business.
The main difference between a startup business loan and a business loan is the amount of time that a client has owned their business.
While in some cases certain businesses may qualify for business loans having only been in business for six months the norm is around one-two years. Startup business loans are loans in which the client has owned the business for less than six months or has not started the business just yet.
Another major difference between startup business loans and business loans are the fact that startup loans will show up on your personal credit report. Business loans will not report to any personal credit bureaus (Experian, Trans Union and Equifax).
Typically it takes Initial Lending Group less than 24 hours to get a client pre-qualified. From there if the client is ready to move forward it usually takes about 7-14 days to get final approval.
Access to funds usually take place at closing and in some instances can get transferred into a checking account. The Client plays a role in the timing of the loan as well. At Initial Lending Group we expect each of our clients to be motivated and responsive throughout the entire process.
For a Line of Credit to actually receive the check book it usually takes around ten days. If needed sooner you may have funds transferred into a checking account.
While Initial Lending Group takes pride in being able to obtain funding for most businesses, that is not always the case.
There are certain types of businesses that are hard to get funded and then there are the impossible. Businesses that Initial Lending Group will not be able to get funding for include businesses providing financial services i.e. mortgage companies, holding companies, banks, etc…
Businesses that prove harder to get funding for are as follows: travel agencies, salons, restaurants, spas and trucking companies. While it is not impossible to get these types of businesses funding we are much more stringent on who we will work with. Initial Lending Group will make up for the difficulty by using a stricter guideline with credit.
f I do not take the loan that Initial Lending Group provides for me am I obligated to pay the consulting fee?
While we do not charge a fee unless a client actually takes the loan, Initial Lending Group is looking for motivated clients that are looking for capital.
Initial Lending Group clearly states typical terms and rates on our website as well as over the phone. While we understand that certain circumstances might arise, please do not apply just to see what you might qualify for. Not only will that waste our time, but it will hinder your chances of getting approved in the future.
Here at Initial Lending Group we are looking for motivated and responsive clients that are looking for capital.
With Initial Lending Group you have access to credit providers that in most cases will not ask you to provide documentation.
Keep in mind that ALL credit providers reserve the right to ask for documentation. Reasons for documentation usually are due to red flags. Red flags include but are not limited to:
1.) Type of employment does not match income. A teacher that makes $300,000/year is most likely going to have to provide docs because that is not the common salary for teachers.
2.) People who are constantly relocating their address. A person that moves around a lot in the lenders eyes, might not have a steady job and will ask for paystubs.
3.) Home based businesses that have high revenues but have only one employee. This is a tricky one because while it is possible for a one person operation to do very well it is not the norm.
Yes you may still apply. Depending on how your credit is it might be better for the co-signer to take out the loan without you on it at all. This will greatly improve your interest rate as well as increase your chances of getting approved.
Someone with poor credit will actually hurt the person with good credit when it comes to unsecured loans. A loan specialist will go over all of your options with you so that you understand how each one will affect your rate and loan amount.
Make sure that you include in the comment box the name of the client that is applying with you so that you will not have an automated turn down.
Initial Lending Group is looking for motivated individuals with responsible credit history. While you can qualify with some bumps and bruises there are certain things that may cause you not to get prequalified with us.
While 1-4 thirty day late payments are acceptable, none can be within the past twelve months. Bankruptcies and judgments will automatically be turned down. If there is a mistake on your credit report you will have to bring it up with the credit bureaus and have them completely remove it from your credit report before applying with Initial Lending Group.
Unpaid collections, charge-offs and any late payments of 60 days or more will also disqualify you from our program. See our credit tips page on ways to improve your credit.
Tax liens are taken on a case by case basis. Credit reports showing that a tax lien is unpaid will automatically be turned down by Initial Lending Group. If a tax lien is paid and showing unpaid on the credit report you will need to take it up with the credit bureaus to have them update you report. Factors taken into consideration with tax liens are time of lien, amount of money it was for and how long it was unpaid.
If the bankruptcy is more than ten years old you may apply with Initial Lending Group. A bankruptcy on your credit report will automatically disqualify you from our program.
Bankruptcies are not looked well upon with credit providers. Keep in mind that even though your bankruptcy may not show on your credit report there are still ways to realize that you had a bankruptcy. One of the easiest ways to realize that someone has had a bankruptcy is that the credit does not match the age. If someone is 38 years old and has credit history dating back only two years, this will bring up a red flag and chances are they have filed for bankruptcy.
There are many reasons why a person should not apply for a loan without professional help. The biggest reason is that with Initial Lending Group at your side you will get professional help throughout the entire borrowing process.
Credit providers are constantly changing their lending criteria; with Initial Lending Group at your side you will be set up with lenders that are funding loans at that specific time. We will only set the client up with credit providers that provide loans for their type of business, use of funds and geographical location.
When applying for a business loan, the most important thing to realize is that lenders do not provide credit to all types of business industries. We make sure that we set the client up with lenders that provide financing to each specific industry. Based on our knowledge, Initial Lending Group will be able to get the layperson more money than if they were to do it alone.
With Initial Lending Group assisting you with this process, you will avoid costly mistakes that will avalanche into a decline. When you need a lawyer would you go to court alone? When taxes are coming up do you prepare them yourself? Why would you make one of the biggest decisions of your financial life without a professional on your side?