Franchise Business Radio: Ron Davison, managing partner of AllCap Funding.com was on a recent episode of the Franchise Business Radio. Tune in and learn about unsecured funding, which does not rely on collateral to secure a loan. Below are some interview excerpts.
Ron Davison, managing partner of AllCap Funding.com was on a recent episode of the Franchise Business Radio. Tune in and learn about unsecured funding, which does not rely on collateral to secure a loan. Below are some interview excerpts.
Currie: Ron Davison was specifically asked to come on the show, because having financial reserve and capital is essential to being a business owner. What is meant by unsecured funds?
Davison: We’re talking about funds that are not tied to assets. People don’t have to risk putting their homes up or leverage different assets, making it less risky for an individual to borrow funds that are unsecured and leveraging those funds to get into business.
Currie: What are some of the trends for unsecured funding?
Davison: The main types of unsecured funding are the Installment / Term loans and the Unsecured Lines of Credit; we’ve been watching them over this pandemic era. Term loans use verifiable income, so we’ve seen them grow and get more stable. The Unsecured Lines of Credit, we’ve seen go the other direction, because you can use stated income in that program. We’ve almost pulled that program back probably 90%. We’re still leveraging it to help people get a little extra capital. The trends lean more toward the verifiable income, debt to income ratio base. Over-all, lenders and investors have stuck in there. Quite a few have fallen off, but a lot have grown their portfolios and are helping a lot of people change their lives and get into business. It’s kind of neat to see that.
Currie: What is your role in helping someone get unsecured funds?
Davison: We’re a research and development firm. We give people a competitive advantage against lenders to acquire a significant amount of capital. We’re doing this by using data science to look at affordability, reverse engineering that and understanding which banks they can go to, which banks they need to avoid and then we put together a financial strategy to acquire funds, usually from two to three lenders. We’re leveraging that data to get lenders to commit to giving funds and then issuing those funds into the checking account, and then clients leverage those to get into business. That’s mainly our Installment (Term) Loan Program. Funding on average is $100,000-$300,000 per person. The other program is the Unsecured Line of Credit; these are basically business credit cards that people leverage to build business credit and have additional working capital, most are interest-free for a year. We’re doing that after funding is done to help people get a little extra interest-free capital and start building their business credit.
For the complete interview, tune in to FranchiseBusinessRadio.com.
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Pamela Currie has 20-plus years in franchising. As a Certified Franchise Consultant, Pamela helps individuals make an educated and informed decision when selecting a franchise. Pamela enjoys being a resource and partner in helping people find a franchise that aligns for them. Interested in franchise ownership? Contact Pamela at Pam@FranchiseIntellect.com for a complimentary consultation.