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What do I do if I’m non-bankable?

Being non-bankable used to be like not having a college degree.  People looked at you sideways and wondered what was wrong with you.  But that’s not the case anymore with either of those states of being because the world is evolving and the old way of doing things is… well, it’s not. 

At Crivello Lending we’re not interested in the forms banks have you fill out or the hoops you have to jump through to get a bank loan.  We’re interested in how resourceful you are, how reliable you are and whether our investment is redeemable. 

Honesty is at the core of everything we do, so let’s be honest.  Banks don’t lend to people because they can’t see the first for the trees.  They look a t a narrow set of numbers and that’s all they see. 

We see the work that has gone into building your business, the creativity that is going into your enterprise and factor in all of the elements of your ability to repay before discussing what options we can offer. 

Some common loan structures include:

FACTORING (AR Lending)

Factoring is the same as accounts receivable lending. The borrower pays a percentage of the total amount of accounts receivables sold.. This allows businesses with aging Ap to get cash immediately 

ASSET-BASED LENDING

Asset-based loans use your assets as collateral for a loan or line of credit you can draw on on an as-needed basis. 

An Asset-Based Loan is usually determined by a borrowing base (a percentage of the value of the collateral, usually 75% to 85% of the value of the AR, or 50% of the value of inventory and equipment. Because it’s based on your assets, your financing can grow with you. 

At Crivello Lending, we are not tied to what others have done before. 

We look at your business and talk to you to find creative solutions for your lending needs.  You need money, we have money, we should talk. 

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How to Avoid Predatory Lenders

What is Predatory Lending?

“Predatory lending is any lending practice that imposes unfair or abusive loan terms on a borrower.” It is also any practice that convinces a borrower to accept unfair terms through deceptive, coercive, exploitative, or unscrupulous actions for a loan that a borrower doesn’t need, doesn’t want, or can’t afford. What you can afford however may not be what a traditional bank thinks you can afford. Choosing to use alternative lenders means taking the time to carefully understand what your loan terms are and what your capacity is to repay them.

Here are some red flags to look out for when you venture into the world of alternative lending.

Blank Spaces in Documents

Be careful of what is not in the documents you sign. Have. lawyer review any contract, there are services like LegalZoom, Trust & Will, and Trademarkia that offer online legal services at reasonable rates.

Prepayment Penalties

While prepayment penalties are common, even with traditional banks, be sure you know how much they are and at what point in the loan’s lifecycle they will be waived.

Additional Services packed into a loan

Predatory loans sometimes have health insurance or other add-ons packed in. If it’s not directly related to what you are getting your loan for, make sure it is removed.

Extra-Fast Closing

Speed can be important but being rushed to sign is a red flag. Take the time to read what you sign to be sure you are knowledgable about your loan’s terms, fees, schedule and requirements.

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