topic Re: Specific Question about Business Line of Credit in Business Credit

Specific Question about Business Line of Credit

Anonymous — Tue, 13 Jan 2015 20:11:32 GMT

I currently own an S-Corp. I bought a Franchise that is fully paid. It has been open for 2 years.

We did 850k in sales the first year, 1.3m in the 2nd year. I did pay myself a salary around 40k each year but the business took a loss both years due to startup expenses. (6k first year, 2k 2nd year).

I wanted to get a Business LOC to expand my business.

What are the chances of getting a 50k or 100k unsecured business LOC? I have no collateral to put up.

I know the rates will be somewhere between 5-11%.

My person credit is pretty good at a 740 and I am 24 years old with no mortgage and little debt.

I just wanted some information and my chances before applying at the bank. I have talked to a few banks and they feel my chances are high, but they may just want my application.

I do have a Chase Marriott Business card with 12k Limit.

Several Personal cards, no missed payments, 21% Utilization.

Thanks.

Austin

Re: Specific Question about Business Line of Credit

Creditaddict — Tue, 13 Jan 2015 23:56:30 GMT

You should be in pretty good shape actually because you are over 2 years.

USBank I know from just speaking with them has several programs and line or loan options starting at 2 years of being in business

Chase can do a line too but they seem to be really difficult as I know a business that does over 2 million a year and can't get more than $50k line out of chase but got several hundred thousand elsewhere.

many banks may be able to pull in SBA too which would then cover most of the collateral of the loan so the banks would loose very little if you failed to pay it...

Who do you bank with on the business accounts?

Re: Specific Question about Business Line of Credit

Anonymous — Wed, 14 Jan 2015 01:15:56 GMT

Thanks.

I bank with Wells Fargo now for my business, but because it is a franchise the money goes into the corproate account of the franchise system, then I have an open account with that franchise where my earnings get deposited.

I am currently working with Wells Fargo on the line of credit, since they do have my deposit records. The 2 years was a big thing for them. I just dont want the hit on my credit if its going to get denied.

The thing that worried me most was the business losing money the first 2 years, I was afraid they would consider that bad and as negative cash flow.

Also, my personal utilization is 16%, not 21%

Just got a limit increase on my new discover It.

Re: Specific Question about Business Line of Credit

Creditaddict — Wed, 14 Jan 2015 01:20:43 GMT

think it's fairly common by the time all said and done that business is negative.

I hate wells but maybe you will have someone with some power and common sense working on your line and can get it done!

otherwise id look into a business bank or credit union that specializes in business!

Re: Specific Question about Business Line of Credit

Anonymous — Wed, 14 Jan 2015 01:32:38 GMT

Thanks!

I am going to try with wells first since I know them all there. Not a huge fan of them but having the business relationship has helped.

Re: Specific Question about Business Line of Credit

Anonymous — Fri, 16 Jan 2015 16:07:45 GMT

Well I got denied by Wells Fargo.

Reasons being Length of credit history (maybe business, 2 years?)

And Credit Utilization too high. I'm at 17%, didnt think that was high.

What is the best bank to apply with next? I think wells fargo is just screwing around.

Re: Specific Question about Business Line of Credit

Creditaddict — Fri, 16 Jan 2015 16:13:11 GMT

@Anonymous wrote:
Well I got denied by Wells Fargo.

Reasons being Length of credit history (maybe business, 2 years?)

And Credit Utilization too high. I'm at 17%, didnt think that was high.

What is the best bank to apply with next? I think wells fargo is just screwing around.

and that is why i hate them!

any credit unions around you?

Re: Specific Question about Business Line of Credit

Anonymous — Fri, 16 Jan 2015 16:25:11 GMT

Only Tower Federal which is government employees only.

I was thinking maybe chase since I have 3 cards with them with 20k total limits?

Are they a good business bank to try?

I really dont want to keep hitting my credit if it isnt needed.

Re: Specific Question about Business Line of Credit

Creditaddict — Fri, 16 Jan 2015 16:32:09 GMT

Lines of credit will be hard.
If you pre-qual on citi do you get an offer for personal? If so you could look at AA business but problem is you can't BT or cash access the line, only charge.
Barclay usairways but again you can BT in beginning but later won't be able to most likely beyond just using it.
Capital one personal card, my partners always allows him to request a check to himself at normal purchase apr with no fee but the new ones would come with at least 12 months interest free but even business card reports to personal.

Re: Specific Question about Business Line of Credit

Anonymous — Fri, 16 Jan 2015 16:37:14 GMT

Dang. Yeah I wish there was an easier way.

Line of credit seemed like the best way since I need to be able to access the cash.

Re: Specific Question about Business Line of Credit

Creditaddict — Fri, 16 Jan 2015 16:42:37 GMT

Then I'd go talk to usbank as they have lines and want 2 year business history to start approving them

Re: Specific Question about Business Line of Credit

Anonymous — Fri, 16 Jan 2015 16:56:47 GMT

Thanks

I appreciate the help.

I knew I shouldnt have went with WF.

Re: Specific Question about Business Line of Credit

MyDataMyChoice — Fri, 16 Jan 2015 23:07:10 GMT

https://www.bankofamerica.com/smallbusiness/business-financing/working-capital/business-line-of-credit.go

Re: Specific Question about Business Line of Credit

Brianinpa18330grh — Sun, 18 Jan 2015 14:57:34 GMT

Beleive it or not, Capital One offers a biz LOC. We have it, 50k and doesnt report to Bureaus. The interest is pretty low too. It was fairly easy to get. Also, we have a 75k LOC from Citizens Bank. Interest is under 4%, unsecured and interest only payments are the minimum due. Hope this helps.

Re: Specific Question about Business Line of Credit

Anonymous — Sun, 18 Jan 2015 18:59:38 GMT

Wow. Thats good to hear?

Can I ask what you average revenue was to get that?

I'm at 1.3m but still took a loss my 2nd year, but still paid myself a small salary.

Re: Specific Question about Business Line of Credit

Anonymous — Sat, 24 Jan 2015 05:53:22 GMT

@Brianinpa18330grh wrote:
Beleive it or not, Capital One offers a biz LOC. We have it, 50k and doesnt report to Bureaus. The interest is pretty low too. It was fairly easy to get. Also, we have a 75k LOC from Citizens Bank. Interest is under 4%, unsecured and interest only payments are the minimum due. Hope this helps.

Do you know what bureaus they pull for this and does this report on personal credit like their CC's? When you say it doesn't report to the Bureaus - wasn't sure if you meant for personal or business or both.

Re: Specific Question about Business Line of Credit

Creditaddict — Sat, 24 Jan 2015 15:42:53 GMT

isn't capital ones loc by invite only?