Frequently Asked Questions
Funding through a Credit Line
We underwrite the underwriters! To get an estimated preapproval, please send us a recent complete personal credit history from all 3 credit bureaus. Our preferred vendor is www.CreditCheckTotal.com. Please see these instructions. On submitting you application, please make note if any credit lines are only authorized user accounts, and complete our preapproval form. Don't worry, even if there wasn't completely smooth sailing over years, we are still here to help guide you what to do.
For people with at least a good two-year credit history, we can normally help you obtain an unsecured credit line between $50,000 - $150,000 with 0% APR for 12-24 months. The longer and better the credit history, the larger total line we can secure. We regularly guide people towards getting $225,000, and we can rarely even get as much as $400,000. If you are interested in larger credit lines that are interest-bearing, we know ways to you get near $900,000. With secured debt, let us help you arrange loans in the millions of dollars.
For personal credit lines, pay only a monthly minimum payment of approximately 1.5% towards the principle of whatever has been spent. After the introductory period ends, pay the principle in full or start paying interest-only. However, our clients generally receive balance transfer offers of 0% for 12-18 months virtually indefinitely. Keep kicking the can down the road, kiss interest goodbye!
If you choose to fund through unsecured credit cards, then the entire portion starts as credit, and you can do a process called a "balance transfer" that, for a fee determined by each bank, effectively turns the credit into cash. We cannot guarantee how much can be taken as cash (since we are not the direct loaner), but it generally ranges from 30-80%. If you prefer, we can only apply for cards that offer balance transfers. Meanwhile, all personal purchases (groceries, gas, utilities, etc.) for the introductory 0 APR period have 0 APR.
As mentioned above, our clients generally receive offers for 0 APR balance transfers virtually forever, so they never really pay interest. Without those offers and not paying back the principle, the APR can rise to 7-22%.
1) A bank loan will give you a cash deposit. Credit cards are not the same thing as cash. A 3% fee on all "balance transfers," you can create a similar function to cash, we'll show you how. True, not all cards can do balance transfers, however all purchases are 0 APR. Put all of your bills on these cards, and pour cash into your investment. Or use the credit cards directly for your business investment.
2) There is 0% APR is 12-24 months, depending on the set of cards, unlike an amortized bank loan which you pay large interest up-front.
3) Banks don't give you $150,000. We can get credit line approvals up to $400,000.
4) Many cards give credit card points, which can be used towards travel and purchases, which are yours to do with as you please. Banks don't.
5) Bank debts are secured, and like a mortgage, once your sell your investment, the banks will want you to pay back the loan. Credit cards are NON-secured debt.
6) If your business deal doesn't go as planned, you can perpetually just pay the monthly payments - or do it again with a friend and have him do a balance transfer and do it again.
7) Get funded within 4-6 weeks. Banks take MONTHS for their due diligence.
8) If you go in with a partner, you can get DOUBLE the amount of money. One's spouse is a completely different person on the credit world. Banks examine households as a whole.
9) You don't have to prove or show income. Stated household income is enough.
10) Use this for personal purchases, not just for business purchases.
Funding by Tapping Your Future
ABF looks as your present business, and large lenders project your future sales. Let's help you invest in your future, now, by arranging a portion of your future profits for use now. It could be called a loan, working capital, or cash advance. We like to understand that you are taking your future and investing in yourself.
Please apply here and attach the last 3 months of bank statements.
You do NOT need collateral. There is NO minimum credit score. You need to have been in business for at least 6 months, and do monthly business of at least $5000. Many types of industries are not ideal for this methodology of funding, but most normal ones are! We're here to help - just ask us info -at- abfunders -dot- com.
$5000 - $2,000,000, generally based on your last 3 months of gross sales.
There are payment plans that grow with you. Off-season? Don't pay back the loan until the season comes back in swing. In fact, many clients are roofers and builders who need to keep staffed despite not being able to work during the winter months. Daily, weekly and monthly payment plans, that can come directly as a ACH transfers or from your credit card transactions.
Once all documents have been submitted, you may obtain cash within as little as 48 hours. However, our experience is that it normally takes around 4 business days.