Unsecured Line of Credit for Business
Does anyone know how to start setting up business lines of credit?
I am looking to setup about $50,000 to $100,000 Line of Credit for my business.
What is the best way to go about doing this?
Do you have a buisness entity registered with the State? It can be accomplished with as a sole proprietor but you will need to introduce your financials as there is no other way to confirm the business when a sole proprietor. The catch of it is that most real estate investors, when acting solely, tend to use schedule E and not shedule C so most do not have the docs to pull it off.
That being said I will send you a private posting some additional details.
Doing a search on this board, last week someone posted the following:
Anyone else know anything about this below?
cut &paste********************************
I haven’t been through the link for the 200k unsecured line of credit as of yet, but I will tell you all that it’s much easier to get these unsecured lines of credit through those who actually know where to find them. Currently, my company offers several different lines, up to $100,000 unsecured each. They don’t show up on you personal credit report, but you need to have pretty good credit scores in order to get them. The application is completely STATED. Only your credit score is actually verified. Rates are anywhere from prime + 0 to prime + 4, depending on the strength of the application, and of course, they’re revolving, so you can use them over and over.
The lines aren’t for everybody, but if you know what you want to do with the money, these lines can be excellent financial tools.
Please further inform me as to where I can secure a 200,00 loan. My middle score is about 625. Maybe this could be of use to me. What is the name of the company or companies
JAAMJK,
Can you send the posting to me as well regarding the business line of credit?
Sorry Despardo, I am not the person that created the posting in question.
I do not believe you are going to find $200K unsecured line of credit without introducing your financials.
I am interested in finding out about this $200,000 lines of credit or any business lines of credit. I presently have 4 partners in a real estate LLC and we are going to be purchasing commercial real estate, starting with small apartment buildings and working out way up to large office buildings and larger apartment buildings. Three of us have 700+ credit scores and one person has 650-680 so should not be a problem. Debt to income ratios are less than 40% for all people involved personally, but getting lines of credit that do not show up on personal credit reports would be the best scenario. I am open for any information. Thanks
I’m not sure what state you are all in, but possibly this guy can help you out the way he did me with an unsecured credit line. His name is Ron Bradly and his # is 610-738-7065 X 13. He is a mortgage broker with Family first Mortgage, and got me several unsecured credit lines when my LLC just started and had no income coming in. If you call him, tell him Greg sent you.
Good luck!! 
thanks a lot greg, I will keep this information to use after I talk with John woolner as he has told me about a his methods of getting $100,000 lines of credit for each member of my llc. Maybe your guy can do the same too. What type of fees does he charge?
Do a search on Tom Kish. He has a program out there that tells about setting up separate LLC’s for each property that you purchase and receiving unsecured lines of credit by using the LLC’s EIN rather than your personal SS#. He even recommends about 8-10 different banks that will help to provide up to $20K each. I haven’t purchased his product and I’m not promoting it… but it is on my list of future purchases.
his course is a lot of money for what something that you can find out for free on forums…but good luck in purchasing it. I am on Tom Kish’s mailing list and sometimes listen to his teleseminars about different areas of lending, and purchasing strategies. I now have a few contacts for unsecured lines of credit and am actively speaking with one who said that we could get several hundred thousand for startup.
Hello All
Go to this web site and read over some things and Im sure that you will find some answers to what your trying to do with out having to buy Tom Kish programs
The fees for the unsecured lines are generally 3% of the line, but that’s nothing considering you’re getting an unsecured line and they are helping you build your businesses credit. Once you establish a relationship with the banks, you won’t need to pay the brokers fees. To me the fee is just the costs one pays when starting a business.
i have a couple questions about business lines of credit…
first, if i apply in my llc and use my fed id # do i understand it correctly that it does not effect my personal credit?
on another site many people were talking about citi, is this the line most of you have used and if so does the above question apply?
my llc was formed a year ago and my checking account is in the llc name, i think this helps?
how do some people have more than one credit line w/ one card?
thanks for your help.
Hello hanatal,
-Any time you personally guarantee something, and on these lines you will need to personally guarantee as an owner, it might show up on your personal credit. You would need to clarify this with the lender as each may have their own approach. Generally, they are issued in the business name, not the personal name, and usually show up on the business credit rating.
-Citi I believe is Citibank and they do have an unsecured business lines of credit. You are probably going to be focused on what is know as a small unsecured business line of credit. In most cases, when the amounts are under $100K (sometimes lenders will have a max of $50K and I think this might be CITIbanks limit in some areas) the lender will not require financials. So most folks focus on the lines below these limits as the process is streamlined. But, most banks will have some form of them so I would suspect that folks have them from a variety of sources and not just CitiBank.
-It does help to have a checking account. If your LLC was formed a year ago you might have a good chance at one. Remember, you may have been operating your business for a number of years as a sole proprietor without formalizing it under a registered business entity.
Being in business for two or three years does not necessarily mean having a registered business entity for that many years. I would ask the bank you ar with for help. That might be your best place to start.
-Many business folks, investors included, have several lines. Each revolving credit card is a line of credit. Lines can come in many forms. The ones structured like credit cards are usually higher in rate and are usually lower limits. Lenders like to lend to folks that maintain their credit quality, have growing businesses and have a great track record of success. But, their is a limit to how much unsecured debt they will be comfortable issuing.
I hope this helps answer some of those questions.
Thank you, you’ve helped emensly. I’ve got about 5 or 6 projects I’m working on or would like to work on but need, well a little more credit.
Thanks again
[/from viperman - original posterUnsecured Line of Credit for Business
Does anyone know how to start setting up business lines of credit?
I am looking to setup about $50,000 to $100,000 Line of Credit for my business.
What is the best way to go about doing this?
the easiest way, but it may take a while is the following
- Start an LLC or other corpoartion
- You need an EIN, if your company does not have one yet. get it from IRS.
- Your state’s dept of corporation will in turn sell your info to banks who want your business
- fill out the apps 2 at a time once a month. You dont want to have a big hit on your creidt when they check your credit score.
peace
steve