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"FLASH" of Lightning )
Financial Brokers for Business & Commercial Loans October 2007
In this issue
  • FICO Scores...What are they?
  • Key Commercial Loan Rates
  • Our Gift to You - FREE 3 Hours Billionaire in Training Seminar
  • Ask the Broker?
  • Recent Loan Funding
  • Hiring Opportunities
  • Greetings Harlan,

    Welcome to "Flash" of Lightning, our monthly newsletter.

    We've written this brief newsletter to keep you, our friend and client abreast of the latest information regarding all areas of financing. We will share with you relevant articles that pertain to financing either commercial projects or business acquisitions.

    Harlan A. Friedman, President & Broker

    FICO Scores...What are they?

    Many of you have heard of FICO Scores, but might not necessarily understand how they work, and more importantly how lenders view them.

    In this article I'm going to give you some basic information on credit and then conclude with SBA's evaluation of Credit Scores. Credit scores can make or break a potential loan. You must pay close attention to your ongoing credit situation at all times, not just when you are trying to get a loan.

    At that point it may already be too late.

    Fair Isaac or FICO scores are the key to the lock that must be opened before any bank will entertain any loan for you . Before deciding on what terms they will offer a loan (which they base on their "risk"), lenders want to know two things before they underwrite a loan; < about the ability to pay back the loan,
    and the willingness to pay back the loan.

    For the first, item they look at your income-to-debt obligation ratio. For the willingness to pay back the loan, they consult the credit score.

    The most widely used credit scores are FICO scores, which were developed by Fair Isaac & Company, Inc. (and they're named after their inventor!).

    Your FICO score is between 350 (high risk) and 850 (low risk).

    Credit scores only consider the information contained in the credit profile. They do not consider income, savings, down payment amount, or demographic factors like gender, race, nationality or marital status.

    Credit scoring was developed as a way to consider only what was relevant to somebody's willingness to repay the loan. Different portions of the credit history are given different weights.

    Thirty-five percent of FICO score is based on specific payment history.
    Thirty percent is current level of indebtedness.
    Fifteen percent each is the time open credit has been in use (ten years old accounts are good, six month old ones aren't as good) and types of credit available to you (installment loans such as student loans, car loans, etc. versus revolving and debit accounts like credit cards).
    Finally, five percent is pursuit of new credit -- credit scores requested.

    SBA will generally not entertain a loan if either spouse or partner's credit score is below 650 without extenuating circumstances. It behooves you to share all relevant information about your credit score with the financial broker or banker you are working with.

    Banks do not like surprises. If you are aware that your credit history is not up to the score the bank needs tell them upfront why your score is lower, don't let them ask you.

    For example we're currently working with one client whose score is below the 650 because he has a high ratio of debt. By us refinancing his debt with an SBA loan his credit score will be raised within a short period of time. The bank has factored this into their credit decision.

    This is just one example of where working with a broker has paid off for our client.

    Contact us to show you how you can get the money that your project or business acquisition requires.

    Key Commercial Loan Rates

    Key Commercial Loan Indexes

    Fed Prime Rate 7.750%

    10-Year CMT 4.560%

    30-Year CMT 4.790%

    USD 6 MOS LIBOR 5.178%

    As of October 5, 2007

    Our Gift to You - FREE 3 Hours Billionaire in Training Seminar

    As a Gift for our readers we have arranged a limited number of free tickets to the Billionaire in Training 3 hour workshop, presented by Brad Sugars, founder of Action Coach.

    Wanting success is not enough ... you have to take ACTION!

    With this in mind this is your opportunity to listen and learn from on.e of the world's most renowned business owners and entrepreneurs!

    The best part is ... this is your chance to attend for FREE, these tickets are valued at $69.95 for regular admission.

    In just 3 hours Brad will change the way you think about money, wealth, business and property FOREVER ... and don't be put off by the name - no matter what your goal ... millionaire, billionaire or even trillionaire, Brad can show you step-by-step how to make it a reality.

    Here's a quick run-down of what you'll get:
    Why the Rich Get Richer and the Poor Get Poorer and How To Break The Mould ...
    How to sell a Business Over and Over again ....
    Discover Passive Income and what it can do for your Lifestyle
    How to Multiply your number of Customers, your Turnover and your Profits ...
    How to free yourself from Debt - Whatever your Financial Situation is ...
    How to Buy, Build and Sell Businesses AND Property with little or none of your own money ...
    Brad's 8 Rules for Investing in Property ...

    I'm sure you'll agree that's a lot of information to pack into just 3-hours, but Brad is determined that you get the knowledge you need to make yourself rich! That's why he'll also show you...

    How YOU can Fast Track your way to Wealth ...
    My 7 Rules for Investing in Businesses ... "
    How To choose the RIGHT Investment for your Situation ...
    The Mindset Shift that will make you Rich ...

    The Freedom To Create Your Dreams Is Just 3 Hours Away ...

    Whether you're an employee who wants to get ahead, a business owner who wants to take the next step, a student, a novice investor, or a serious financier, this is one seminar that YOU CAN'T MISS!

    USA TOUR DETAILS Wed 28th November San Diego, California Convention Center

    To claim your complimentary ticket click on the green registration information below article.

    Your special registration code is: USSP107

    You will need to enter that code on the registration page in order to claim your complimentary ticket.

    But ... you must act quickly ... these events are a guaranteed sell out BOOK EARLY

    Lightning Commercial Funding, Inc is a Sponsor of this seminar, so stop by and say hello.

    Ask the Broker?

    How do I choose traditional commercial loan or an SBA loan I'm confused?

    Ariel, Lake Elsinore

    The answer is very simple. You can only use an SBA loan if you are buying a property for your own personal business usage. You are not allowed to buy any investment property with an SBA loan.

    However you may be able to lease up to 49% of your business property to tenants, so in essence you can get SBA financing for a portion of the property that is income producing that is not related to your direct business usage of the property. For practical purposes I would not lease out more than 40% of the gross square footage.

    Please email your questions to "Ask Your Financial Broker" at

    Recent Loan Funding

    Shell Gas Station - SBA 504 Loan for 1.5M
    Subway Franchise - SBA 7A Loan for 250K
    Wall Manufacturing Company - SBA 7A Loan for 110K
    Self Storage Construction Loan for 6.6M
    Self Storage Mini-Perm Loan for 5.3M
    Self Storage Bridge Loan for 4.8M
    Shell Gas Station - SBA 7A Loan for 520K
    Residential Care Facility - Commercial Loan $650K

    Hiring Opportunities

    If you are interested in joining our GROWING company please contact Harlan. We are expanding this year and would like to have you join us. For those financially astute individuals we offer a proven system to build your commercial finance business along with comprehensive training.

    UP-Coming Seminars
    Call the Office at 858-592-0659 for upcoming topics, times and dates.

    Quick Links...

    phone: 858-592-0659

    Lightning Commercial Funding, Inc. | 16486 Bernardo Center Drive | Suite 100 | San Diego | CA | 92128