Businss LOC

Financing, Hard Money Lenders, Private Money
1

I would like to know if there are any sources available who will start a Business LOC based on a new business credit instead of personal credit? I would also like to keep the business completely seperate from my personal business. I have lost opportunities because I don’t have the funds to do the deals nor was I able to find an end buyer. I’ve also had no luck finding local financial help. I have been able to lock up a deal using Transactional Funding on a short sale and by the time the deal was ready to close, the value had changed and I couldn’t find an end buyer. If I had the use of a Business LOC I could lock up a deal, do the standard rehab, nothing major and sell the property. The LOC would allow me to pay for inspections, appraisals, earnest money and take care of contractors who do the work. After deals are closed, I could pay back the LOC. Does anyone have a suggestion or resource who may be able to help me?

Thank you
MJ :help

2

This is very difficult to establish. Lenders know that people with bad credit would love to just get credit in the business name. They can walk away from it easier. That is why lenders don’t like to do it.
You have to work long and hard getting business credit cards and small secured loans before you can get a LOC anymore. You need a real business with established revenues and profits too. Not just a new shell.

3

If you find it, let me know. But if you are just starting your company, expect any big amounts of credit that you receive to be guaranteed by you. And fair enough, early on your company IS you.
There are apparently steps that you can take to slowly break your personal guarantees from loans and credit, but this is a process that takes time and won’t happen overnight.