phanio
474 posts since
Apr 7, 2009
3.
Re: Start-up Business... LOC/Loan for $50,000 May 7, 2009 10:15 PM
Unfortunately - all the things you are trying to aviod is what it takes in this market.
Some suggestions - getting a line of credit maybe a little tough - unless you can get that from a business credit card - but, with poor credit that is not likely to happen. Depending on how bad your personal credit is - you might be able to get several personal credit cards for that amount (credit cards are essentially lines of credit).
You state you are a start-up - most start-ups do not have long customer lists - but if you are an expection, there are credit lines based on unpaid accounts receivables or business cash advances against future credit card sales. But, these do have many of the things you are trying to avoid.
There are also personal loan companies that can lend up to $25K - these are not lines of credit - but more term loans. Again, they also have some of the things that you are trying to avoid.
What I am getting at is that with mediocre personal credit your options are limited - especailly for a line of credit but there may be options for a term loan(s) for the amount you are seeking.
You can also try to improve your credit - fixing the negative or consolidating your outstanding. This not only will help free up your current cash flow but will better position you for capital in the future.
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