Business Lines Of Credit
I have had a Sole Proprietorship for 21 years and am filing for a C-Corp now and want to build unsecured lines of credit. I ran across a web-based company - Business Finance - who offers a service to help establish three types of business credit. Has anyone had any experience with them? They tell prospective customers to check them out first and that is what I am trying to do. Thanks MB
Most banks want your company to be setup for at least 2 years before giving you an unsecured line of credit.. Your best bet is to have your bank account with a national bank and go to them for a business credit card. Then after your company has been established for over 2 years get a LOC.
I found most of these systems to be a scam, where I had to pay some fee, w/ no guarantee of performance.
My concern also. The thing is; I would be happy to pay someone legitimate a few hundred bucks if they could walk me through the process I should follow to establish the cash credit lines. Most services I have seen are for those with no established business while I have a 21 year old Sole Prop. and a new C corp.
Quote:
On 2007-06-19 22:08, cjmazur wrote:
I found most of these systems to be a scam, where I had to pay some fee, w/ no guarantee of performance.
All my accounts are mainstream banks - Washington Mutual, Bank of America, Wachovia, Home Depot, Citibank, Chase, Juniper, etc.
Bank of America is being very generous lately. We had small accounts for 3 companies there and they offered us LOCs and Business CCs all with no docs and no guarantees. The all had 0% balance transfer for 9-12 months. We also got several HELOCs with them with no docs.
My credit score is low but no baddies and very little personal debt. My moms is excellent.
If you are interested I can send you the list of what was easy and what took work
I agree with linlin...Bank of America has some great programs. And a lot of them have no closing costs.
It would be worth at least talking to them.
I would agree that Bank of America seems to be pretty easy to work with. I opened an LLC 2 years ago, have had a B of A credit card for a year and the started me with only $5K credit line. I used it paid it off a couple of times and they have since bumped my credit line up twice without even asking.
The card line of credit is now over $20K and they are pursuing me now to open LOC. I will probably apply for a $30K LOC here and use it several times and hope they bump it up for me again.
$35K is the limit for most banks before they start requiring you to jump through hoops with lots of paperwork to prove cashflow.
you own the land free and clear, that is very powerful.
You can get construction money for 70% LTV, so the lan may cover that.
They riskiest part is finding a good GC to run the job. You could JV w/ him or pay fee for service.
Have you done your DD as to the entitlement process?
zoning
affordable housing
land use
historic or other district
etc.
The deal fell apart because it was rezoned as a SF lot.
Quote:
On 2007-07-17 16:10, bernardpete wrote:
The deal fell apart because it was rezoned as a SF lot.
How can it be rezoned single family if there is a 4 unit on the lot???