HOW DO I OBTAIN A 50k BUSINESS LINE OF CREDIT ON A NEW CORP?????

[Inquiry removal man]

I recently started an LLC about 6 months ago and i need to get business credit so that i can help offset some of the costs of my new business. I already have my EIN and article info but i am not sure where to go to get a line of credit.

 

I have a pretty decent credit score but my revolving personal debt is not low (i have about a 65% debt to credit ratio).

 

Everywhere i go to apply (CAP ONE, AMEX, CITI, CHASE) they ask for my SSN DOB and other personal info which is fine but i need to know where i can go to get a line of credit as soon as possible.

 

What determining factors do they look at to extend credit. I have only received 1000 here 500 there which simply is not enough.

 

Is there a process that i can follow to get where i need to be?

 

Can i provide bank statements to help?

 

SOMEONE PLEASE HELP =)

 

I have heard of so many companies that charge thousands of dollars that claim they can get 100k lines or more with a personal guarantor but i simply do not trust them since i am pretty sure i can do the same thing myself for free. What do they have access to that i do not??

 

Your help is appreciated so very much.

[ansky0007]

I will be the bearer of bad news. In todays economy it is not going to happen for any non established business. You will essentially have to be personally responsible for the loan and if you dont have any assets to secure the loan you are not going to get a $50k line of credit for a business thats 6 months old. Based on you running at a 65% of your personal credit I would highly doubt you will get any funding right now.

[800FICO1]

I will be the bearer of bad news. In todays economy it is not going to happen for any non established business. You will essentially have to be personally responsible for the loan and if you dont have any assets to secure the loan you are not going to get a $50k line of credit for a business thats 6 months old. Based on you running at a 65% of your personal credit I would highly doubt you will get any funding right now.

 

+1 I'll have too second that...

[greywolf]

Even three years ago you couldn't have gotten a LOC based on what you have now. There is no way you can obtain what you are looking for, at this point. Even businesses with solid sales, and strong credit have trouble obtaining anything like what you are talking about these days.

Edited November 16, 2009 by greywolf

[Inquiry removal man]

I will be the bearer of bad news. In todays economy it is not going to happen for any non established business. You will essentially have to be personally responsible for the loan and if you dont have any assets to secure the loan you are not going to get a $50k line of credit for a business thats 6 months old. Based on you running at a 65% of your personal credit I would highly doubt you will get any funding right now.

 

 

Ansky thank you so much for your response. I appreciate it much.

Do you know of any way that i might be able to do this using myself as a personal guarantor once i pay down the revolving debt? I can do this right away.

 

Any other options in obtaining lines of credit or credit cards with high limits so that i can get the business moving along. We already have a great profit margin it is just the starting capital to get things moving along faster that i need.

 

Any other comments would be appreciated much.

Thanks.

[greywolf]

If you can get your utilization down to <30%, you should be able to get a loan with Personal Guarantee. Banks are not going to like that high utilization you currently have.

[Inquiry removal man]

If you can get your utilization down to <30%, you should be able to get a loan with Personal Guarantee. Banks are not going to like that high utilization you currently have.

 

I can do that as soon as possible but do you know of any banks that i can go to right off the bat that have the highest lines of credit and lowest lending matrices?

[greywolf]

What area of the country are you in? There are some good regional banks in the Northeast (where I am), but they do not lend out of the region.

 

Big banks are treating small business owners like lice, so avoid them if you can. Local and regional banks/CUs are the best option. Ideally, if you can get in front of a loan officer/Underwriter you are in a much better position.

[Inquiry removal man]

What area of the country are you in? There are some good regional banks in the Northeast (where I am), but they do not lend out of the region.

 

Big banks are treating small business owners like lice, so avoid them if you can. Local and regional banks/CUs are the best option. Ideally, if you can get in front of a loan officer/Underwriter you are in a much better position.

California, Ill see what i can put together. Thank you again for all of your help brother. i appreciate it much.

[ansky0007]

If you can get your utilization down to <30%, you should be able to get a loan with Personal Guarantee. Banks are not going to like that high utilization you currently have.

 

Also important are the size of the personal lines.. Even f you are at 0% utilization but only have a total of $5k in limits you will not get anywhere. Now if you are talking you have $50k to $100k in credit card lines you have a chance.

[bosshaug]

Step One: Pay down your existing personal credit, this will help maximize your personal scores.

 

Step Two: Develop a relationship with a local banker and or private investor that is interested in your line of work. A solid business plan will help show them that you have thought everything through. How much they will lend you is based on your business's current income or bank deposits--Honestly, 6 months is not a long enough track record to justify a large line of credit.

 

Step Three: Continue to build your DNB, Equifax and Experian profiles as outlined in this forum. It takes time.