Looking for a Business Loan

[ansky0007]

My business was started in 2004 and I have very good business credit. My cash on hand however is very low and it makes it difficult to keep buying inventory when sales are down due to the economy. My business sells items so I have to keep inventory in stock and when new items come out its more items that I have to stock. I buy on Net 15's, Net 20's, Net 30's and some vendors will only accept credit card.

 

I have over $30,000 in inventory and I owe at any given time around $20k to $25k for my inventory, It works out ok because I buy what I know I will sell so I can pay it back within terms but this leaves me very little cash on hand.

 

I applied at random for some working capital loans and the only approvals I had were with companies that wanted to to use their credit card processors and they would take a percentage of my credit card transactions to pay back the loan. In general this is not a bad idea but I have to change credit card processors which I do not want to do. Based on my credit card merchant statements they say I can easily get a $50k loan but I want a more conventional type of loan for like $20k paid over 3 years or so. I dont want to mess with paying back loans through my credit card sales.

 

Anyone have any leads on reputable companies that are lending?

[sasanibel]

what about your local bank who you bank with? they know your deposits and income, that is where I would try first.

[ansky0007]

what about your local bank who you bank with? they know your deposits and income, that is where I would try first.

 

 

I tried but was denied due to a personal bankruptcy a few years back. They did not even look at my business credit only my personal credit which is not bad (My Fico has me at a 702) but because of the BK record they said they could not approve it.

[jazzpetals]

Maybe try Prosper.com?

[milesb]

I wpould focus on building a LOC instead of a loan. That way you only pay for waht you use and not the whole amount. Plus build your business credit "FILE" along with your credit so you dont have to rely on any personal credit at all.

 

 

what about your local bank who you bank with? they know your deposits and income, that is where I would try first.

 

 

I tried but was denied due to a personal bankruptcy a few years back. They did not even look at my business credit only my personal credit which is not bad (My Fico has me at a 702) but because of the BK record they said they could not approve it.

[MainSt.]

Do you accept credit cards? There is a program that provides loans based on receiveables for a company, NOT A MERCHANT LOAN! The min credit score required is 545. They also have a program that is based on your average banking balance if you dont receive credit cards for your business. PM me and I will discuss it with you because I dont want to appear like I am soliciting.

[ansky0007]

Do you accept credit cards? There is a program that provides loans based on receiveables for a company, NOT A MERCHANT LOAN! The min credit score required is 545. They also have a program that is based on your average banking balance if you dont receive credit cards for your business. PM me and I will discuss it with you because I dont want to appear like I am soliciting.

 

We do accept credit cards but as I mentioned in my first post I did not want to go that route because I dont want to swith my provider. I get excellent rates with my current processor. I was already approved for a minimum of $50k based on my credit card receipts with a few different companies but I am looking more for a traditional type of loan.

[MainSt.]

The particular loan I mentioned "does not" require you to switch processors. Their is also another loan that is available but I believe the maximum is 50k. Not sure how much you want to borrow but the min credit score is 575 I believe.

[ansky0007]

Can you explain the factor rate in these types of loans? I was offered 60k with a factor rate of 1.25? Is this good. I am not familiar with these types of loans.