Credit stacking is beneficial to clients who do not have a business producing cash flow. Business lines of credit are beneficial as well but you need to make sure the banks are vetted properly by calling and asking what the clients may need to bring and instruct the clients accordingly.
If the bank is going to request documents for Business Lines of Credits while they are at the meeting but they did not tell you that on the phone then you/them need to pivot. They can say something in regards to: "I would have to reach out to my accountant to get those, is there anyway we can rescheduled because it will take 2-3 days to get those documents" they can also mention "I did have my CFO call and he was told by a representative that I would only need to bring these documents" If the bank won't continue without those documents then we just need to call and vet another branch.
Traditonal Business Term Loans require a business that is currently operating and has a positive cash flow and taxes as well as bank statements showing their cash flow for the last 6 months. Business Term Loans would be the most difficult. In some cases some banks do offer "No-Doc" business term loans but you need to make sure you call the bank and verify it will be no document.
Why is credit stacking more beneficial to clients as the borrower than traditional loans or lines of credit? cy - Lamar review
Written by Corey
Last updated October 24, 2023