Frequently Asked Questions

It seems that unsecured business credit is one of those “elusive” products that people talk about but do they REALLY exist? Well, they absolutely do. We’ve helped our clients obtain millions of dollars in unsecured business lines of credit and we have learned some valuable lessons that we want to share with you.

Unsecured credit lines have been around for a long, long time. They are no secret to the wealthy and the savvy business owners. They have many benefits. When properly structured they do not report to an individual’s personal credit report. They can be excellent cash flow tool as the monthly debt service is usually lower than almost any other form of financing. The rates are usually very good too – rates are usually between 3-7% above prime. With that being said, however, the most popular form of unsecured business line of credit currently is in utilizing business credit cards. It’s a more involved process that requires more planning and expertise but, when properly planned and implemented, you’ll save yourself by paying less interest than you pay with the traditional unsecured business credit.

What are Unsecured Business Lines of Credit good for?

Unsecured business credit lines are great to use for debt management, project specific purposes, and almost anything that is not a long-term project. It’s important to understand that, as a rule of thumb, a long-term project is anything over 12-18 months…but this is not true for all situations…it’s a good rule of thumb however. It also depends on whether you’re utilizing a traditional unsecured business credit line or the credit card model as to the best strategy to employ.

Are credit cards Unsecured Business Credit?

Absolutely. The properly utilized business credit cards will actually cost you less in interest expenses than traditional unsecured credit lines if they are managed properly. Because of this, and because of the growing difficulty in getting traditional unsecured business credit from banks, many business owners are turning to using business credit cards as their primary unsecured business lines of credit. Some, unfortunately turning to the wrong sources.

Will I need to submit my tax returns, W-2′s, or any financials?

No. Hawkeye Management does not collect your financials and you will not need them.

What if my business is new, can I still get lines of credit?

Absolutely. In fact, many of our clients are owners of new or start-up firms or investors who use the funds for investment purposes.

What if I can verify at least $1 Million in Annual Sales for the last calendar year?

If you have verifiable annual sales of between $1 Million – $10 Million then you will have more options for additional capital and additional products. The additional options require a more complex strategy if you are looking to raise a significant amount of capital.

Will Unsecured Business Lines Credit affect my personal credit report?

When properly set up, unsecured business lines of credit do not report to your personal credit report unless you go into a default status.

I have great credit, what’s the problem, why can’t I have what I want?

Great credit is a good thing. And it will help you in everything you do as a business owner. But good credit alone does not get you across the finish line. It’s really just the beginning. There are many other necessary elements to understand. The right lender needs to be identified, the goal you’re wanting to accomplish, what type of unsecured business credit line is best for your situation, what your company will actually be able to obtain, etc. – these are some of the items that must be identified if you wish to obtain unsecured business credit.

If I have someone else who has better credit can I use them as my personal guarantor?

Yes. It’s usually not a problem but sometimes there are steps you must take to carefully plan for this.

How much capital can I raise through the Unsecured Business Credit Program?

It depends. For each individual you can raise between $50,000 – $200,000. In our program it’s common for people to get between $30,000 – $50,000 within the first 30 days. We’ve had some clients get approved for as much as $100,000 or more within 15-30 days but $30,000 – $50,000 is more normal. Although it may not all come in the first 30 days, if Hawkeye Management accepts you as a client we guarantee you a minimum of $50,000 in unsecured business credit.

Since there’s no collateral what happens if I default or stop making payments?

Since there’s no collateral what happens if I default or stop making payments? Unsecured credit lines are obviously unsecured but just remember, there’s still a PG (personal guarantor) who signs for the repayment of the loan. If you default on a mortgage or a car loan there is obvious collateral attached to the loan that protects the lender. With unsecured credit you must keep in mind that if you default or stop making payments that the lenders will still do whatever they can to collect their money. So don’t confuse unsecured with non-recourse.

Are unsecured business credit lines ‘non-recourse’ money?

No, not normally. Most unsecured business credit lines require a Personal Guarantee or PG. Non-recourse monies are usually obtained through a good Paydex score on a Dun & Bradstreet report and do not require a PG. Although we love non-recourse monies it’s important to understand that these non-recourse lines of credit are usually for much lower amounts than PG accounts and the terms and interest rates on non-recourse lines are not nearly as good as PG accounts. So the bottom lines is that both PG money and non-recourse money are both good, but they serve very different purposes and there are very different ways in which you should utilize them.

I have a good paydex score isn’t that better?

A good paydex score… is a good thing to have… and we suggest that all business owners purposely go after an excellent D&B report. Sometimes the paydex score and D&B profile can be important when going after certain types of unsecured business lines of credit. However, there are other times when it’s completely a non-issue.

What are the rates for unsecured business lines of credit?

Unsecured credit lines are not typically rate-driven products like mortgages and other long-term forms of financing. Hopefully that goes without saying but, just in case, be sure to keep in mind that unsecured business lines of credit are NOT designed or intended to be used as long term products like mortgages and nor are they intended to be specific to any one deal, purpose, or instrument like car loans, student loans, and other installment loans. Unsecured business credit, unlike these other forms of financing, can be used over and over and over again for many different reasons and purposes. Although any good thing can be set up poorly and you should ALWAYS know what the rates and terms are it’s safe to say that you don’t shop rates on unsecured business lines of credit like you do for mortgages. It’s not that the rates are not important but they almost never make or break a deal. At the end of the day, the best approvals go to businesses that provide full income documentation (tax returns), have very good credit scores, good liquidity, and appear to be the lowest risk to the lender.

What is a UCC filing and do unsecured business credit lines require them?

A UCC filing is almost like a mortgage against your business. The UCC’s will be seen by other lenders who you apply with in the future. When obtaining lines of credit make sure you find out if the lender will take a UCC against your business or not. This is not necessarily something that should always be avoided but it is something that should be planned and part of a strategy so that you allow the right lenders to utilize UCC’s when they are required by the lender.

For Small Business Owners what do you mean by Debt Management?

Think about it like this. Almost all wealthy individuals, and many who have plans to build wealth, hire financial planners. What do financial planners do? They manage assets. One of the most common problems that business owners face is not in managing their assets but in managing their debts. The more wealth people have the more debt they have and in order for any business to grow they must have access to capital (aka Cash). Access to capital means creating more debt and properly creating that debt as well as properly managing that debt requires strategies and tactics that most business owners are not trained and equipped to do. Ask yourself if you have the training and experience to manage debt effectively using the very best strategies that are available on the market today we’ve been doing this for years and it’s all we do and we are constantly learning each and every day.

How can I get some of these unsecured business credit lines?

You’ve really got 2 options. Your first option is that you could hire Hawkeye Management. We submit hundreds of business loan applications and business credit applications to several different lenders every month. We know which lenders are lending and whether you and your business will be a good fit for them and we also know how to make sure you have the correct business credit application and credit profile before you submit those applications. Your second option is you can try to do it on your own. Do you know which lenders offer unsecured business credit without full income documentation? Do you know which ones do not report to your personal credit report? Do you know the number one reason why unsecured loan and credit line applications are denied? Do you know which bureaus are pulled by each lender so you can properly plan the series of applications? Do you know how to pull the cash out of a business credit card without taking a cash advance so that you’ll actually pay 0% but have the cash in your bank account? These are just a few of the questions you should know how to answer. Hawkeye Management does not charge any up-front fees so you’ll only pay our fees if we solve your problem.

Who is Hawkeye Management?

Founded in 2001 by Tom Gazaway, Hawkeye Management has their main office in Blackwood, NJ. Tom has several years experience in lending and creating credit solutions for his clients. He is professionally known as the credit geek for his knowledge and insightful understanding of the FICO® Credit Scoring System. Tom is one of less than 50 people in the United States who holds the Certified Credit Expert Witness certification. This means Tom can actually be hired by law firms to represent consumers, lenders, or credit agencies in court cases that are credit-related. Since credit is the foundation of nearly all small business lending solutions, Tom’s credit knowledge is invaluable in creating the solutions necessary to accomplish the lending goals of small business owners. We have real solutions for you that will create value for your business and we are people you can trust. Period.