I just started a new LLC for RE Investing; and would like to find a bank or banks that offer unsecured lines of credit to new companies. Many of the RE Gurus offer this info with their multi-hundred dollar courses but I can’t afford that right now. Any help or ideas? Thanks!
Lowes will give your LLC a credit card. that helps some.
Many lenders will finance or refi into an LLC with a personal guarantee. This is good step to establishing credit for the company.
I got a credit card from Bank of America already. I’m filling it out and I am going to use it for exactly what Mark said - make some biz purchases (material) and pay that f’er off each month!
Build it and they will come…
Hey Everyone-
I don’t know where your located but, Wells Fargo will set you up with business lines and cards. The benefit of doing it with Wells Fargo is when you apply for the credit they will do an inquiry on your credit(just like everyone else) BUT, The business lines and cards do not show up on you credit at all. The balances will go on the EIN of your LLC. you will have to be a guarantor(like anywhere else) but, at least it won’t effect your personal credit so you can use it for other things. ;D
Hope this helps.
Thanks to everyone for the advice…I’ll give these a try.
Rob
Yeah, when you start your LLC you should start getting lots of mail on credit card offers. They usually give you 12 months no interest as well. You have to build a credit history.
Jryan, how do you know that they don’t go on your personal credit? I opened an account with Wells Fargo and they offered me a LOC and a credit card for $7500 each a couple of months ago. They said they would have to pull my credit so I assumed it would be put on my personal report. Would really like to clarify if this is the case or not. Thanks
Seanmathes-
I am a banker at Wells Fargo, I have also opened up my business accounts for my LLC. ( businessline and business credit cards.) None of the balances on those business credit products showed up on my personal credit. The bank will do an iquiry (pull) on your credit to determine the amount you will qualify for. You will have to be a guarentor which means if you default on the loans/lines they can come after you( just as anyone would.) Keep in mind you must have an EIN # for your LLC, if you use your SS# for the business, then it will go on your personal credit. But I have searched high and low for business cards/lines that only affect the businesses credit and Wells Fargo is the only place I have found. (I’m not saying that because I work there, but its a plus! :). To my knowledge the other offers you recieve in the mail will show up on your personal credit as well as the business. If anyone needs help with getting a business line/loan let me know.
jryan
Will Wells Fargo issue a business line to an LLC using an EIN where the personal grantor would have a Bankruptucy that is more than 7yrs old but less than 10yrs old???
yrush2000-
Typically after 7 years of a BK they will consider lending. A couple of thing to keep in mind is WF looks for at least a 670 personal credit score. I have been able to get lines approved with guarentors having a BK 7+ years but it can be challenging if you don’t know how to present the app. to the underwriters. Unfortunatly not all bankers are fully aware of little adjustments on apps. that underwriters like to see to consider for loaning.
-jryan2355
Can you send me an email, i like to know more, and see about having you set up a credit line for one of my new LLC’s… Oh if it matters, it is set up in NV but does its buying in Fl…this LLC is about 2months old though and only have one tradeline so far but it is for $90,000…and only have a $10balance…
Thanks man, I wish that my banker had known what she was talking about and told me that months ago. A extra 15k worth of credit would have been nice. Also, do you know if they automatically approved me for 7500 for both the line and the CC is it likely they would increase that just by asking when I apply? Thanks again for the input.
If you apply for the Line and/or credit cards, have the banker state your last years revenue of at least 500k. And apply for the max. amount: 100k on the line and 50k on the credit cards becaues they will always counter offer it so you might as well ask high. The determining factor is going to be your credit, but these things help. If you have accounts established at Wells Fargo you can email me and I can submit the applications unless you have another banker. Hope this helps and good luck.
What product do you recommend for business in Florida. I noticed the business line does not apply for Florida.
yrush2000-
I would say it really depends on your needs. Going back to the question about having a bankruptcy on the guarantors credit… Was it a chp7 or 13? If it was a 7 then your looking at least 10 years until you can get loans/lines (from WF anyways) if it was a 13 then your chances are decent if you have had the debts paid back for at least seven years, not just seven years from the time the person filed, Just to clarify that. But I would start with a Business CC and then grow from there. Start with the CC and utilize it for you rehab cost or anything else and then 6-12 months down the road (with good payment history) apply for more. Also, don’t let the requirements of WF stop you, like Marcus335 said… after you register your LLC the Credit Card offers will come flying in.
-Justin
So if I have SH*t credit, i am assuming i cant get credit for my LLC? What would be my best route?
NguyenandCo-
Don’t assume that you can’t get credit… First, I would consider the offers you recieve in the mail after you’ve licensed you LLC, look at which ones look the best and apply. Or even with a Credit Union (don’t tell anyone I said that) But yes, Credit Unions are less strict and they will give you the benefit of the doubt most of the time. Second, it really depends on whether or not you want to get you credit score back up. If you do, get a credit report and dispute the hell out of old negative records and call and/or write letters to the credit agencies. You’d be suprised at what they will throw out or compromise to get that off your credit report. Also, if you have a little $, get a $500 secured card and use and payoff monthly, that will build your credit back to where you want it after a year or so. Before you you do this though keep in mind that applying for LOC or credit cards from a bunch of different institutions in a quarter will hurt your credit even worse, so be selective and minimal. Good luck, hope this helps.