mj11 Posted December 2, 2007 Report Share Posted December 2, 2007 I am begining the process of obtaining a business line of credit. (75-100k). Does anyone have any suggestions about what my best course of action is? I am going to start with my bank and go from there.Thanks! Link to comment Share on other sites More sharing options...
willingtocope Posted December 2, 2007 Report Share Posted December 2, 2007 Is your business incorporated? If not, its really personal credit.Your bank would be the place to start, but, beware the "personal gurantee". Even if you're incorporated, if your business is just getting started, chances are anyone who lends you that amount of money is going to want your personal credit on the line. If your business goes under and can't pay...you will. Link to comment Share on other sites More sharing options...
mj11 Posted December 3, 2007 Author Report Share Posted December 3, 2007 It is an LLC and I have been in business for 5 years and it cash flows very well. I don't mind being attached personally but I don't have much collateral. Will they require it to be fully collateralized? Link to comment Share on other sites More sharing options...
workinghardelsa Posted December 3, 2007 Report Share Posted December 3, 2007 It depends on the bank/lender and their programs. Some companies lend on how strong the company but most however wants a personal garantee if your company has no business credit. Link to comment Share on other sites More sharing options...
willingtocope Posted December 3, 2007 Report Share Posted December 3, 2007 AMEX, Crap 1, USBank, Chase...all have "business line of credit" accounts, that require little more than your personal gurantee. They'll check your personal credit, and give you a LofC based on that. BEWARE. Remember, you're betting your house, car, everything you own on your business being able to pay them back(We did this. We lost. Wound up doing a personal BK 7 to protect ourselves from the "business" credit, and since the business folded and we lost our income, we lost everything else). Link to comment Share on other sites More sharing options...
Recommended Posts