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Oops. Forgot to answr your question on the dollar amount. I'd like access to anywhere between 0-250k on line of credit.

Although I do not have formal terms with my suppliers, we work so closely together that I guess you can say that we are beyond the "net terms" dealing.

I have an agreement with my supplier to use them exclusively in return for a matched inventory commitment. For example: If I have $100k allocated to inventory, they match my inventory 1 to 1 by placing $100k of inventory available for me, in their warehouse. When I pick up the inventory, I pay for it on the spot. There is no "terms" but essentially the meaning is the same and maybe a little deeper: Although I have $100k commited to inventory, I have access to $200k of inventory. This inventory they keep for me is specifically for me, and once its made to my specs, it cannot be sold to anyone else.

My portion of the inventory turns over once every two months, and if you add their matched contribution, then the inventory turns over once every four months, or three times a year.

For my customers I work on cash only - when their credit cards authorize or when the checks come in, I ship the goods. This is the biggest issue right now, because even though these are not formal A/R terms, the money is always floating. I never forecasted that I need to allocate capital so money can float in, because I didn't consider that as an A/R. The only thing I can do to counteract this floating is if I floated myself, and that is by using credit cards and paying in full. But, this is a hassle because its difficult to find a credit card that offers limit in the tens of thousands, and that not all my purchases can be made using CC.

So back to the topic of loan/line of credit - how does this work? I have been researching, looking around, and sometimes applying. What blows my mind is that all of the loans I've seen are all personally guaranteed - checks personal credit, and goes after person if the loan defaults. My goal for having LLC is to have separate entity, and I always feel that the banks try to tie me back in. All of the credit I've established with the company have been without a PG, but these are store charge accounts (staples,office depot, gas, etc) and none are the useful LOC's. I have about 60% of my capital in inventory, 10% in equipment, and 30% in operating cashflow/AR floats. I don't mind securing the loan with anything except personal guarantee. Trying to learn some new tricks here

BuyNSell,

My name is Vic. We have some alternative funding routes we could entertain. I would like to discuss this with you in greater detail. Please send me an email to vjm93@hotmail.com.

-Thanks-

+I work with companies such as yours in helping them obtain loans and lines of credit all the time. This is my specialty. If you are interested in my services, please feel free to contact me,</<br />Thanks,*

Carol, Financial Consultant
FinanceHelp4U
hardwork70@newwavecomm.net
(606) 598-4218