This application form (survey) was filled out by a woman in Porterville, Ca. She is a baker who is desperate for Small Business Loan, and she has a self-described excellent credit rating, which is somewhat confusing when you read the entire application for approval. It seems that her credit rating is damaged, but yet she states her FICO score is over 700. So we are going forward with loan application as it is and checking with the main Credit Bureaus for the so-called excellent score.

This small business owner has a very long history in her field, coming by it honestly, and being trained since she was a small child growing up in Porterville, working with her mother in their small bakery business. This is an old-school style business model for sure.

So we will get right to it now – read the application from the applicant, and they you will see lending and borrowering agreement laid out.

Type of Loan :: Small Business Loan with Excellent Credit Rating

Why do you need a loan? – Explain in detail :: I am requesting this loan for various purposes.  I want to consolidate a current EXCELLENT STANDING loan and some bills.

If for Business, tell us a little about your business :: I need to purchase some machinery and tools to expand and accommodate the needs of my home bakery.  Then just a small older van or SUV as a delivery truck.  I need to transport wedding cakes and such to my clientele.  I am working my way to opening a bakery/cake shop, in the community.

How Much Do You Want To Borrow? :: Between $10K – $15K

Length of Employment :: Over 5 Years

Time at Address :: Between 3 – 5 Years

Age :: Over 30

Extra Info Here – anything else that would help us get your loan approved :: I have a GUARANTEED income of $1400 per month, and what is made from the bakery is “extra”. I don’t really have anything to offer for collateral.  2000 Chrysler Neon but I it was hit in the front right quarter panel.

I have a retirement savings plan of $3500.  To be totally honest I and just starting out on my own again with my son.  Everything was taken from us literally over night. Car, home -everything but our clothes.  We had to flee to a women’s shelter in fear for our lives by my spouse. I have had a crappy start with my credit but my current loan has never been late nor defaulted.

I’m looking for a hand up not a hand out!  I just can’t seem to be able to make anyone understand that I know I have made some mistakes and I am now trying to redeem and improve my credit rating, knowing some day I want to purchase a home for my son and I. I can afford to pay about $120-$180 for monthly re-payment and if withdrawn on the 21st of the month, GUARANTEED to be there.

Also I now have been scammed for $1850 from a predatory lender and need to make that up again. I wish I wasn’t so gullible.  I don’t expect people to be crooked like that. If at all possible I would absolutely love to have the opportunity to make my dreams become closer to being achieved.  I just need someone to believe in me!

Sex :: Female

Marital Status :: Single

Ever Claimed Bankruptcy? :: Yes – discharged

What State/Province/County is your primary address in? ::Porterville, California

Have you checked your credit report in the last 7 months? :: Yes

Would you consider your credit rating to be? :: Excellent (FICO over 700)

Collateral? :: No

Down Payment? :: No

Do you a have co-signer or co-borrower? :: No

Employment Industry :: I have been baking with my grandmother since I was about 7 or 8 and haven’t looked back.  I currently have 4 cake decorating certificates and always learning and creating more.

Small Business Loan with Excellent Credit Rating – APR = 4% Over 3 Years

Since we are dealing with an small business applicant that has a self proclaimed credit score, and we have not actually checked the Credit Bureaus yet, we will do out numbers assuming her information is accurate.

Principal of Small Business Loan = $15,000 (Maximum request for loan)
Interest of Small Business Loan = 4% (strong credit score – over 700 FICO)
Length of Small Business Loan = 3 years (typical lending term)
Payment Schedule – Small Business Loan = Monthly (normal for an excellent credit rating)

Results for a Small Business Loan at 4 Percent Interest Over 3 Years

Total to be paid – $15,924.83
Total interest – $924.83
Payments come to - $436.30

So there you have it. A small business loan for an applicant with a really good credit rating, coming in at just under $1000 in total interest (cost of funding) over a three year period. Each monthly payment coming in at $400 dollars and change. Not bad at all, and if used correctly, will certainly help this business owner get their cash flow back on track.