eudamonia

Scammers exist in every avenue of life where there is profit to be made. As a currency trader I can't tell you how many scams/con artists there are out there offering "holy grail" Forex seminars, magic black box systems, and other such nonsense. Early on in my trading career I wasted much time/money/effort with such foolishness, and it was only by direct experience and open online forums that I was able to see these scams for what they really were. Please keep in mind some of us "newbs" just want to learn about business credit and if it is an appropriate tool for them to use. For myself I've relied on personal income, savings, and many thousands of hours of blood sweat and tears to get where I am - and I still have a long way to go to reach my personal goals. Maybe building business credit may help me reach those goals, maybe not. One thing I've learned is to leave no stone unturned. This was the key to my current success and I have no doubt that it will help me reach my end goals. Lastly, keep in mind that the truth is out there for those who care to research it. This is true for trading and also I believe on this credit board. I can tell who is selling something and who is talking from real experience. In the long run the scammers only fool the sheep and themselves. Best of luck in the continued success of your business. Edward

slick, Thanks, that's some solid advice and most likely I will just keep rolling the way I have been. Just thought I'd confirm my assumptions.

CCS, Yes I'm interested.

drew, 60% is no problem. These are similar terms that CTA's will take from their management clients.

toopoor, Seems doubtful. 7 figures is a lot for a house related LOC. But what do I know anything is possible. I perhaps misspoke. Collateral would certainly be there - but it would be in a brokerage account. Not exactly traditional. Having a business plan and bank statements is no problem. Explaining how my non-traditional business works to a local bank lender who knows nothing about derivatives seems to be the potential issue. Why does any business want to expand? Because they can make even more money. Of course I can continue to feed money back into my system, but I want to make more than just peanuts in this game. slickman, Going back to slickman's suggestion. How exactly do you not mention what you do and actually qualify for an LOC? Should I just say I'm an "investor" (other traders I know have had to do that to qualify for a home mortgage) or what? breeze, That's a pretty mysterious post! Who are these mystery people who might lend to me for unknown costs? Seriously I want to know. As a trader I know of 3 primary methods of raising capital to trade: 1) yourself/friends/family, 2) proprietary trading shop, 3) start CTA/hedge fund. I've pretty much used method number 1 to get me where I am today. Method 2 requires a pedigree Ivy league degree and moving to NY (also Wallstreet is bleeding at the moment), method 3 requires having audited results (got that) and getting really rich people who don't know you to invest in your untried hedge fund As you can see there are some drawbacks to method 2 and 3. So just trying to figure out if there is a 4th option out there.

breeze, Difficult or impossible? Doing what I do everyday is difficult but not impossible. Maybe I misunderstood my basic econ classes from college, but I thought businesses were supposed to be valued by income flow. Does that only apply to certain businesses? What other types of businesses have trouble applying for LOC? The reason I am even pursuing this line of questioning is that I know of several highly successful traders who apparently use substantial LOC. Think 7 figures. Of course they also have the income and capital base to justify these lines. I cannot imagine they got these lines by taking a 2nd on their house (maybe I'm wrong) Oh yes, the reason I do not ask these traders is that most highly successful traders guard their trading success better than the CIA So quite possibly I am wasting my time. But I figure it couldn't hurt to ask.

I respectfully disagree with that assertion, considering that trading currencies is a totally legit operation. Keep in mind that the major banks all have currency trading/brokerage arms - so I seriously doubt that the banks consider it a "flawed" business model. That being said I'm sure they'll want to see the proof in the pudding - just as with any business. Again can anyone answer my questions? Or perhaps a simpler question. Has anyone been able to acquire a substantial ($100K+) LOC recently based on income alone? What type of information did you need to provide the bank? What type of debt/income ratios did you need to provide. Any other assurances?

I have been cruising the forums for a couple of weeks reading many threads. I see a lot of folks getting their business established, getting their DUN, some Net 30s, and some small credit cards. I would like to hear more about folks who have recently secured a $100k line or greater (yeah in this market). My "business" is a sole proprietor currencies trader. I've been trading for 7 years and make consistent returns. The problem is similar to most businesses - to make money you need capital and lots of it. I know of several traders who trade on LOC (most under a business name). I understand from the boards that you need a PG to get this (not a problem as my scores are above 750). However, I am unsure how the bank would "secure" the loan (my brokerage account?) as this is not hard assets. So my questions: 1) Is there any advantage of me forming a corporation for purposes of attaining an LOC? 2) How old does the corporation need to be? 3) What would I ultimately need to show the bank as I don't have a gross sales revenue (everything is net)? 4) How do I get them to understand my "business" model. Thanks in advance.

Thanks for the information. I'm still a little fuzzy on the benefits of a shelf corp. Are there any threads talking about that?