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approx. size of monthly payments to pay off a 100K loan ?

The last post in this topic was posted 4098 days ago. 

 

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This question comes as a spin off from the

question asked today by BostonTeaParty

 

You guys/gals who are familiar with the various

business cards and lines of credit that are

available I have a question for you:

 

If I am using 100,000 dollars of credit and

I have accessed this via three or four cards

or loans or lines of credit that are easy to get,

what would be the approximate payment

amounts monthly to pay off this loan? If you

know the amount to make monthly payments

on $1,000 then we could multiply that by 100

but I guess the monthly amounts would vary

among the three or four or five cards and lines

of credit that would be used.

 

I am not looking for extremely accurate

amounts per month but a very close estimate

based upon recent experience using the kinds

of credit that you people have been getting for

your llcs?

 

I need to know how much I need to keep in

reserve to make the monthly payments until my

business starts producing enough to make payments

on the monthly bill required for the use of $100,000 in

credit. I estimate I will need six months of capital to

make the monthly payments before my business starts

producing enough so I can draw out money from the

business itself to make the monthly payments.

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Depending on the issuer, most vary from 1/12th the balance plus interest up to 1/25th the balance plus interest. Personal cards can go up to 1/50th the balance plus interest, not sure how/if that will change with the new credit card legislation (affecting personal accounts only)

 

No offense, but credit cards are not the best way to finance a start up, especially since you have to PG all of the credit yourself. Is there some other lending option you can use, ie SBA loan, traditional loan, etc? A fixed rate installment-type loan would probably be a much better choice, IMO (might be worth <$.02).

Edited by greywolf

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you would need to know the minimum payment of each supplier.

 

as a rule you can use a "constant" to figure out what any given amount would take per month to pay off in full.

 

A loan, at an 8% interest rate, is amortizing over 25 years with monthly payments. The annual mortgage constant is 9.262%. Total principal and interest payments in a year are $9.262 per $100 borrowed.

 

 

see:

http://www.answers.com/topic/annual-mortgage-constant

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There is no such thing as a 25 year business loan! lol

 

Think more like 5 year term at upwards of 9% and you're in the right ballpark.

 

Also, as mentioned, credit card financing of a startup is fraught with danger, if you think you can max 4 or more lines and make only the minimum payments with no AA, think again! You will scare off your creditors, get CLD, ratejacked, etc... NOT the way you want to start out your relationship with new business creditors... The same util rules that apply to personal credit apply here, in fact most business creditors loathe a balance at all and pif is preferred for biz cc's, maxing all your lines shows great irresponsibility.

 

Don't be surprised if you decide to do this with ratejacks to 25% plus and closures...

Edited by Questor

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There is no such thing as a 25 year business loan! lol

 

Think more like 5 year term at upwards of 9% and you're in the right ballpark.

 

Also, as mentioned, credit card financing of a startup is fraught with danger, if you think you can max 4 or more lines and make only the minimum payments with no AA, think again! You will scare off your creditors, get CLD, ratejacked, etc... NOT the way you want to start out your relationship with new business creditors... The same util rules that apply to personal credit apply here, in fact most business creditors loathe a balance at all and pif is preferred for biz cc's, maxing all your lines shows great irresponsibility.

 

Don't be surprised if you decide to do this with ratejacks to 25% plus and closures...

 

 

Once you "open yourself up" and need creditors most, that is when they will stick the knife in you. Meaning, credit and cost of will only go up, not down, if you use credit cards to fund. If your someone that already has some income from the biz or someone able to make double minimum payments, I would look elsewhere. Its very tough because you have to factor in your steady, daily personal expenses, house, car, etc. Its a sure way to some big problems.

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There is no such thing as a 25 year business loan! lol

 

Think more like 5 year term at upwards of 9% and you're in the right ballpark.

 

Also, as mentioned, credit card financing of a startup is fraught with danger, if you think you can max 4 or more lines and make only the minimum payments with no AA, think again! You will scare off your creditors, get CLD, ratejacked, etc... NOT the way you want to start out your relationship with new business creditors... The same util rules that apply to personal credit apply here, in fact most business creditors loathe a balance at all and pif is preferred for biz cc's, maxing all your lines shows great irresponsibility.

 

Don't be surprised if you decide to do this with ratejacks to 25% plus and closures...

 

 

Once you "open yourself up" and need creditors most, that is when they will stick the knife in you. Meaning, credit and cost of will only go up, not down, if you use credit cards to fund. If your someone that already has some income from the biz or someone able to make double minimum payments, I would look elsewhere. Its very tough because you have to factor in your steady, daily personal expenses, house, car, etc. Its a sure way to some big problems.

You do not use the Corp you control to write off all of those exp's?

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No offense, but credit cards are not the best way to finance a start up, especially since you have to PG all of the credit yourself.

 

There are under 1000 places that will give you credit on your business credit score alone without having to PG everything. Why do you say I would have to PG everything when I can build credit on the EIN instead of my SS #?

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There are VERY few cash trade lines that will allow you borrow that much money without a PG. You are dealing with corporate level cards, not small business level. Amex Corporate, Citi Corporate, as examples, require $10 million in sales for their corporate programs.

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The last post in this topic was posted 4098 days ago. 

 

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