Possibility of higher amount?

[Goldchild]

Hello,

We opened in Spring 2024 but started processing actively in Oct 2024 and soon thereafter received a loan offer of $5060 right at initial eligibility, which we took.  Then in December received a $13,300 offer with $3156 remaining on the prior loan.

Then about 2 weeks ago we received a $20,200 offer with around $3000 remaining.  I’ve since let that drop down to 94% complete ($843 remaining).  At the rate we are growing, it will be paid off in the next 4-5 days.

I am wondering once paid off, is there any likelihood of a higher loan amount being offered — or conversely — a lower amount/the current offer being rescinded?  We are growing rapidly each week since we have been slowly but intentionally adding hours as our business stabilizes (we are a coffee roasting company and cafe).

I need to purchase a new espresso machine and grinder but the current loan size is about $4000 off what is needed.

[Donnie-M]

@Goldchild From my experience, as your sales volume is established, it will govern your loan offers *when* you get one.  It is algorithmically driven and then reviewed, so there isn't a person so to speak that can say when or *if* you get another offer.  There are a lot of factors, but if your processing volume is up since the last loan, the odds are in your favor that it will be a bigger offer, just no guarantee when.

Since you have been doing this a while, you might want to also check with your bank about an SBA loan, or a local bank about an inhouse product.  It is good to make sure you have the liquidity you need.  I have replied to many threads on these forums over the years where business end up in a cash crunch, and it can take you out quickly.  Good luck to you and sounds like you are rocking it.  (Last point, I would keep putting money back like you are paying off your loan, even when it is paid off.  I know easier said than done, but at those amounts, you can get some retained earnings in the bank for those espresso machines and use the loans strategically instead of as a necessity.)

[Twpchair]

 I love this response! I too have an LOC with my little credit union for emercy only I use. It took me 2 hrs and in and out. No additional information needed my soul bank and they have everything. Once a year I take down my updated licenses. I myself only love small-town credit unions vs big branch corporate banks. I also, have a Square savings and 10% going there which is good in the winter for MICH and you can always adjust it. Or big cash weeks and it doesn't go through square ill add 300-500.00 to it. I love it and never have touched it. In a year it will be that loan I am needing. Great advice for everyone. Don't put your eggs in one basket, if you are rocking it take advantage of that extra saving % and put aside 5% to start with and build up. Slow months drop it back to 5% type thing. Also, a great way to establish a local relationship with your bank or credit union. You don't have to shoot for 50k but you need 4 k ask for 8k? And build a relationship with them. I started 10k now at 25k and used it 1 time for 3,500.00 for delivery trailer to good to pass on and fast cash. 1 minute on the phone app and done. Great advice 

[Twpchair]

1st congrats on the continued growth!  2. As with most loans until we receive the offer it’s hard to determined how much, when or if it comes. Terms etc. Our loans now have a scale that you can slide higher or lower depending on your needs.  As far as asking for more of increase the max offer you see on your scale is the highest offer available now. It’s so hard without prior knowing how much or when and even if. I read your post through and through and you are very close to that offer and you being so close to paying it off. If and only trends your way again and your loan is paid off. Roughly in head and a tad increase would do it. Keep processing as fast as you can and boost numbers even beyond what you’re doing and see if it helps. Good luck to you!

[marielmt · Accepted solution]

Hi @Goldchild!

Thanks for taking the time to reach out to us.

We’re not able to increase the size of your current loan offer. As you pay off your current loan, your account will automatically be re-evaluated for potential offers. Offer availability and sizes are based on your business’s most current processing activity. We cannot predict if or when your business may receive a higher offer. If you choose not to move forward with your current offer, your account will continue to be evaluated for offers.

Hope this helps, please feel free to reach out to us directly if you have any other questions!