Where can we get a business line of credit or loan?
Jun 14, 2009
in
Business Line Of Credit
We are looking for a ,000 loan or credit line for our business. We have been around for almost two years and we have good collateral through real estate investing. We also have good personal credit. We have not applied before but now we would like to have access to reserves credit to pile cash. Should we look at some small local banks or a bigger bank for this?
Thanks
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8 comments
taximomuv3 on June 14, 2009 at 1:57 am
When we needed to open one of those for our business, we contacted our bank. They have all the info they need as they see how much money is coming and going out of your account each month & you’ve developed a relationship with them. Just be sure you check interest rates and terms – make sure they are at a fixed rate, and watch out for annual fees & service charges on cash advances – they can be pretty steep.
jpr302001 on June 14, 2009 at 1:57 am
You should start with local banks.
Sharon T on June 14, 2009 at 1:57 am
I’ve had my best luck working with a small local bank. Look for one with several branches but small enough that the decision makers aren’t far away.
Make an appointment to sit down with the manager of the branch nearest you. Make it a package deal. You will bring your deposit accounts but want a line of credit. With your good real estate collateral, this should not be difficult to accomplish.
dalitiguous1 on June 14, 2009 at 1:57 am
I would hope that you have started to develop a relationship with a full service banker. That is the person that you deposit your money with and borrow from. There is no substitute for us ordinary folks. As your deposits and activity grow the banker will be increasingly interested in keeping your business and will allow loans at a better rate. That person will also be more flexible when times aren’t so good.
Sophie B on June 14, 2009 at 1:57 am
The first place you go is the bank you’re using now…they have your business, they should want to keep it,…..
Sarah P on June 14, 2009 at 1:57 am
if your business already over two years, with a good credit, you qualify for approval with Orbit Business Loans
http://www.orbitbusinessloans.com
AMBER T on June 14, 2009 at 1:57 am
We have ours through our personal bank & we love it!! That’s a great place to start because you already have accounts opened and a relationship with them. Also, with online banking you can transfer money between your line and your business account (so its good to have it where you already have your business account set up. The only thing I don’t like about ours is that we don’t have a check card with our line, but we can transfer anytime and its immediate.
Initial Underwriting Group on June 14, 2009 at 1:57 am
A true business credit card is a line of credit that is taken in the name of the business, under the business’ credit. Activity, whether good or bad, is reflected on your business’ credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.However, some companies out there offer “business” credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts – you are.When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business’ credit, while avoiding creating problems with your own.
Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for “strong business credit” (just like that in quotes) to find services that sell the information.
Good luck,
Ilya Bodner
Small Business Owner
Initial Underwriting Group