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New Member
anotherannabanana
Posts: 11
Registered: ‎03-24-2011

Need advice on using credit to fund business!!

Here's my situation: I've owned 1 business for 5 years. It doesn't make a whole lot of money but it pays the bills, and I'm set to pay off my loan for that business in August. This year I had the opportunity to start up a dream business with a higher profit margin and higher expected profits in general. The lease space is under renovations right now and we're expected to open around the end of August. I took out another business loan from the same lender ($100K this time, my last one was $50K). But construction is going over budget, as it does, so I need as much $ as I can get from credit cards with 0% APR for the first year. I will have no problem paying these off after a few months with both businesses up and running, it's just getting as much money as possible right now that's tough. I have no "business credit" because my loans have all been secured with personal guarantees, so I'm looking for personal credit cards I'm likely to get with good CLs. I was rejected for Chase Ink biz credit card and then instantly approved for 2 personal cards from other vendors.

 

Here's what I've done so far for business funding:

 

$100K business loan at 9.5% interest rate over 10 years

Capital 1 Venture Rewards card, 0% APR for 1 year, $3,000 CL

Discover IT garnet card - 0% APR for 14 months, 12.99-15.99% after, haven't gotten a CL yet

 

I love that the Discover card has 5% back on home improvement stores, because we're doing construction right now.

 

I also got a prescreened mailer from "Citi Thank You Preferred Card," with 0% interest for 18 months. I haven't applied yet because the rewards are for things like dining and entertainment. But I'm afraid to reach out and apply for something I didn't get a prescreened offer for. Any advice on other cards to try? I need to buy a lot of restaurant equipment online.

 

We were also offered $10K or more from a cash advance service for businesses, but their fees are SO high that I'd honestly rather use a bunch of 0% credit cards for the rest of our startup expenses and pay them off before the grace period is up, if possible. What else should I apply for??? (Keeping in mind I was rejected by Chase, even after recon, for never having had a credit card before, just a bunch of loans in good standing)

 

FICO = 708 Transunion, waiting to check the rest

9 accounts open, 0 negative items

I have owned my home for 3 years w/ 20% down, and pay all my bills on time

Mega Contributor
Creditaddict
Posts: 18,830
Registered: ‎10-23-2007

Re: Need advice on using credit to fund business!!

1. Who is this $100k loan with? why not just see about having that extended a little more?

2. Id take the citi offer if it's just about 0% for the longest (you can't complain about rewards on 1 card but then actually entertain taking a business cash advance!... I mean you can but do you realize how silly that seems to worry about rewards but not rate?!)

3. I would apply to Amex as they don't much care about business credit, just personal.

Fico Scores: EQ 639 Navy, TU 665 GE, EX 677 Prosper (07-09-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Fidelity Amex $25k (AU)
Lowest Limit: Buckle $250
Over 30 Cards in between :smileytongue:
New Contributor
Sunshinebiz
Posts: 67
Registered: ‎10-03-2013

Re: Need advice on using credit to fund business!!

Have you looked in to Capital One Bank's business line of credit program? They have some great options and are easy to deal with. If the loan amount is less than 50k they don't require financial documents. If you can pay the line back within a few months then their rates shouldn't present an issue at all. It does require you be in business for two years so may need to involve your existing business. Depending on your situation you may or may not wish to go down that road. Good luck with everything and let us know what you come up with 

Gardening spree went on hiatus but I think it paid off. Now back at it!
Building slowly but surely. Thank you to all members of this community for all the invaluable advice.
Latest that I know of: EX- 671, EQ- 653 TU- 648
Amex Green, Barclay Rewards MC, Cap1 Platinum, Cap1 Quicksilver, Credit One(closed!), WalMart, Amazon, DCU Platinum Visa, Jared Credit, Cap1 Spark business cash back, AMEX corporate Gold, Alliant CU Plat Visa, Suncoast FCU Plat Rewards Visa

Goals by end of January: Amex TE Costco, Amex BCE
Can it be done? It wasn't done by end of Jan, but it's still coming

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