Service Limitations, Drawbacks, and Considerations

At Preferred Funding Group, we are dedicated to equipping entrepreneurs and individuals with the financial tools necessary to seize opportunities and achieve their goals.

Our services are best suited for those who are confident in their ability to generate a return on investment that surpasses any associated fees, interest rates, or temporary impacts on their credit score.

As lifelong entrepreneurs, we understand both the challenges and rewards of this journey. To help you make an informed decision, we encourage you to review the following key considerations regarding our services.

Credit Score Impact

  • Initial Quote: Obtaining a preliminary quote does not require a credit inquiry.
  • Application Process: Moving forward with loan or credit card applications will result in multiple credit inquiries, which may temporarily lower your credit score.
  • Score Impact: Clients who proceed typically experience a temporary credit score reduction of 50-150 points. However, as long as debts are repaid on time and in full, credit scores generally recover and often exceed previous levels after repayment.
  • Important Consideration: If you are uncertain about your ability to repay debts on time and in full, this service may not be the right fit for you. Only proceed if you are confident that the benefits—such as increased profitability or an improved quality of life—outweigh the temporary credit impact and associated costs.

Personal Guarantees

All loans, lines of credit, and credit cards obtained through our service require a personal guarantee, including business-related products.

Debt Reporting:

  • Many business loans and credit cards do not appear on your personal credit report if payments are made on time and in full, helping to maintain a lower debt-to-income (DTI) ratio.
  • However, some business loans and credit cards may be reported on your personal credit report. In all cases, failure to repay will negatively impact your personal credit.
  • All personal loans and credit cards will be reported on your personal credit report.

Your Responsibility: 

By accepting funding, you acknowledge full responsibility for repayment and any credit-related consequences.

Credit Line vs. Credit Card

  • Credit Lines: These are more difficult to obtain and account for less than 1% of the funding we provide.
  • Credit Cards: This is the primary funding option offered. Credit cards do not require payments when there is no outstanding balance.
  • Access to Cash: If you need direct access to cash, credit cards may not be the best option, as converting them into cash can be complex and carries inherent risks.
  • Disclaimer: We do not facilitate or provide guidance on converting credit cards into cash. If this is part of your financial strategy, it is your responsibility to have a well-planned and responsible approach.

Additional Considerations

Financial Prudence

  • Only take on debt or financial commitments that align with your current financial capacity and long-term goals.
  • Before committing to new debt, develop a conservative business plan that includes a detailed repayment schedule and cash flow analysis to ensure financial feasibility.

Prohibited Uses

Our services are not available to clients who intend to use funds for the following purposes:

  • Coaching programs
  • Cryptocurrency investments
  • Illegal activities

    • Practices to Avoid

    Whether you choose to work with our company or a competitor, it’s essential to steer clear of the following:

    • Upfront Payments: Never pay money upfront for a promise of funding or an attempt to secure funding.
    • Cancellation Fees: Avoid services that impose cancellation fees.
    • Misrepresentation: Do not exaggerate or falsify information to increase funding amounts or approval chances.
    • Forced Commitments: You should never feel pressured to accept funding, debt, or credit that does not align with your best interests. At any stage of the process, you have the right to change your mind.

    Final Thoughts

    We are committed to helping entrepreneurs achieve their goals in a responsible and effective manner.

    However, this service is not for everyone, and we prioritize transparency to ensure clients fully understand both the potential risks and rewards.