I want to open a business line of credit to fund any carrying costs, etc. Is it as easy as filing an LLC and applying for the credit? I guess what I’m asking is, will I need to have an extensive business plan or assets. Any advice would be appreciated. Thanks for your time
Just visit a local bank and set up a merchant account. In my area, $25k line of credit is not too hard, however you are personally signing for it. More than that amount, they want more assurance, maybe a third mortgage on your personal residence or a bit more history on your company, etc.
Small amounts aren’t too difficult. I started with a line of credit to fund closing and carrying costs. Then bumped it up to renovation costs. Then bumped it up again to acquistion, renovation, carrying, and closing costs.
If I started at say $5 million, I probably would of had to tell the bank my life story while using everything I ever owned as collateral and have an extremely wealthy cosigner do the same. I paid the bank back religiously and gradually raised the amount and it wasn’t too bad at all. If you are starting a brand new LLC you will need a personal guarantee as turbo said.
Lines of credit are not typically hard to get… there are several things you will need and I questions I will need answered.
Yes it’s that easy, however you won’t get very much without a business that has been around for 2 or more years.
I would think that it is not that easy however if your “personal Garuntee” is you and you hav crappy credit
Is there someone that I contact to learn about business accounts and credit?
hey mark how much of a line of credit do you think ??
that is a 2 year or older coporation could get 8)