Need To Borrow 20,000 By Tomorrow In PA
Our latest applicant is actually a business customer, and needs $20,000 by tomorrow to facilitate the purchase of equipment for one of his customers. He realizes that he did not manage the cash flow situation very well in this case. He would normally have cash on hand to deal with special orders that require cash upfront to be paid to the vendor before delivery. The applicant also did not indicate whether his customer had paid an upfront advance payment. This certainly would help cash flow and would indicate other problems in terms of managing his money if in fact customer has already paid in advance for this equipment. It is pretty much a common practice in industry for vendors to demand advance payment for special orders.
In this situation, his customer is expecting the installation to start the day after tomorrow and unless he can borrow $20,000, personally or through his business his vendor will not ship the equipment and he will not be able to begin the installation. The customer has already been waiting one and a half months for the installation to start.
There should be no problem in arranging for a $20,000 loan to this applicant once he provides more detail. Most lenders will transfer the funds electronically directly into his account overnight so that the money is available to him to use as he sees fit. The applicant has a good credit rating and lower expenses relative to his personal living costs compared to many people in his situation. He should be commended for helping his parents, paying their utilities and property taxes, etc..
This applicant might also benefit from a line of credit. A Line of credit could be used as needed and paid off as cash becomes available. A line of credit like this, provided that it was not drawn up to the maximum would be an excellent tool to deal with situations such as this one. Lines of credit carry attractive interest rates. They can be configured similar to personal loans with a slightly higher interest-rate. If they can be secured against equity in a home for example a lower competitive interest-rate can be provided.
One question that we do have for this applicant is why his end customer is not paying all of or it least part of the cost of the equipment in advance. If the customer canceled his order for some reason then this vendor is left holding the equipment that he cannot install. He will be out the $20,000 unless he can sell this customized equipment to another customer. There may well be a good reason however this is one issue that needs to be understood.
While there is lots of risk for this applicant, there is little risk for the lender. The applicant will be on the hook for the $20,000 loan regardless of what happens.
DEFAULT LOAN APPLICATION FOR BORROWER’S INFORMATION
Home/Mortgage Loan Amount :: $20,000
Home Loan Application and Processing Speed (when do you need the funds):: by tomorrow morning
Do you currently have a mortgage? :: no, I live at home with my parents
Bank Name and Branch :: Citizens Savings Bank, Main Ave
What City/Town, State and County do you live in? :: Scranton, PA
Zip :: 18505
What is your employment field? :: small business owner
Employment Position :: furnace and air conditioning installation and repair
When are you paid? (monthly/weekly/biweekly):: weekly
Your credit rating to be – excellent, fair, or bad? :: fair
How did you find us? :: looking for online loans
How are you paid? (direct deposit/paper check):: direct deposit
Gross Amount Per Paycheck :: $3000
Do you agree to have this information published online, without your PRIVATE information of course? :: sure
Extra information here please (some detail)::
Hi, I need a $20,000 loan by sometime tomorrow to pay for some equipment that I need for my business. I install furnaces and air conditioning equipment as well as repair new and used systems. I need this $20,000 to pay for equipment that I will need for the next job which starts the following day.
Normally, the vendor will give me 30 days to pay for the equipment and I usually collect from the customer within that time period. This particular job is a special order job and because it cannot be reused for another customer, the vendor wants the money upfront. This is a typical process within the industry however I had forgotten that it was a special order and I don’t have the cash ready to pay for this equipment.
Note to Lender ::
As I mentioned I run a furnace and air conditioning installation business. Normally I would have the cash on hand to pay for this equipment within my business. However I just purchased a new van and some other equipment that I need and am a little cash strapped at this point. I’ve been in the business for the last 10 years and have many customers as well as a good reputation.
This is really just poor cash management on my part and not accounting for special orders for my own customers. I believe that both my business as well as my personal financial reputation is of high quality. I have not missed any payments for utilities, rent, or an any loans that are personally in my name. Likewise for my business we have not missed any payments or defaulted on any loans.
I still live at home with my parents and have very little cost in the way of living expenses. We have an arrangement where I pay all of the utilities and they pay for the groceries. I also pay the property taxes which is a really good deal for both of us. With no rent to pay, my living costs are very low.
Can you help provide me with a $20,000 loan by first thing tomorrow? If I can start the job the day after tomorrow as planned, my customer will be overjoyed since they have been waiting for one and a half months for this installation. If the loan cannot be approved I will have to delay the start of the job until I can pay for the equipment and have it delivered.