Business lines of credit

Can anyone tell me how to go about setting up business lines of credit?

Do you have a business? See a bank, they will let you know what you can barrow.

Will they just give me a line of credit to invest in real estate in an LLC?

mine wont. They want 20% down even on a rental house for $35,000 (fter improvements) that will be worth $70,000 after its fixed up. To me its B.S. that they wont do 100% financing since its an investment property, but they wont hesitate to borrow me $50,000 for a new pickup that depreciates $10,000 after you sign the papers. I mean come on, do you think i am going to ruinmy credit over a $35,000 house? :o i dont think so >:(

So what is the best way to get business credit that will finance 100% of the deal? What are you going to do in your situation with your bank? Are there any banks that will lend 100%?

im trying to find one. Just last week i finally got a line of credit for $50,000 through Wilmington Finance (I went through Lending Ive passed up 2 GREAT deals already waiting to get approved for this line of credit, so now i am waiting to find another great deal. Ive just got to wait and be patient and not rush anything

Ok, do you live in Wilmington? I am in West Chester, PA. Since I am looking to establish lines of credit would you recommend I try Lending Will they give credit lines for investment props or are they just mortgages?

no, i live in nebraska and this place is in Colorado somewhere. I would suggest filling out an app. at Lendingtree. Im not sure how good it is as i have not actually used them yet. But i have backup to go make offers on housed now. I beleive that the line of credit for me will be what they will loan me for a mortgage.

Did you have to be in business for at least 2 yrs before you got the line of credit?


Washington Mutual and Wachovia or your local Credit unions or banks any of them do it depending you your credit risks and assets

If you set up your business as a separate entity from your personal credit, you can start building your credit file specifically for the business.

In California, when you set up your business checking account, you have to provide your business license and your articles of incorporation. After that point you can apply for credit using the business only.

The first credit you receive will be based on the credit worthiness of the individuals ( in our example) an LLC. You get a $1,000 credit card and then pay it off within a 30 day period. You can get credit from places like Home Depot which is great for rehabbers. then you get a line of credit for $5,000 - $20,000 to catch those big deals in the name of the LLC.

You might at this point want to transfer your personal cc debt to the LLC which makes your credit go up. When you close your next deal
pay those off… don’t close your cc’s keep them open it increases your personal score and your LLC credit rating.

How do I transfer my personal credit debt into my s corp? Do u mean transfer the balance onto a business credit card? I have a capital one credit card, but how can i find out if it really attached to my business and not just using my SS#?

I would recommend against Lending Tree. They sell your file to several mortgage companies. No problem with this, except each lender may pull your credit. Lending Tree had consumer complaints that up to 20 companies pulled credit on applicants.

Supposedly all credit pulls in a two week period count as one pull, however that wasnt the case. Some people saw their credit go down 30-50 points after applying to lending tree.

A safer alternative is a mortgage broker/banker. They can pull your credit once and send your package out to several wholesalers. This is essentially what happens at lending tree, but is is sent out to 20 brokers who probably all use the same wholesale lenders in the first place.

As far as business credit goes, you open an LLC and use your personal guarantee for any loans the LLC takes out. After you have a few years of credit history for the LLC, the LLC can take out its own loans without your personal guarantee.

Lenders on your current credit wont let you transfer your debts to the LLC. They may change the name on the card, but you will still be personally liable for the debts.

  1. How do I transfer debt from my personal accoutns to the LLC?
  2. In opening the first line of credit would they use my credit score (at home depot)
  3. Is it as simple as what “ginasands” posts?