ForumsFinancing Tips

First things first - banks don't want you collateral - they want you to repay the loan. For a line of credit - your best bet is to find a local bank or credit union and apply for a personal line of credit. As a start up, not may banks will fund a line of credit unless you have financial assets to back them - financial assets like accounts receivables, purchase orders, or credit card receipts. I did this when i started my first business. I took one day and went and applied to 8 different banks and credit unions for a personal line of credit. Of those 8 - 3 declined me - 4 gave me $5K line of credit each and 1 (the credit union) gave me $15K line of credit. All of this combined gave me the funds to start and grow that business.

Other way - harder way - would be to place $50K of some amount into an interest berring savings account or CD - then use that account as collateral for a line of credit. This is 100$ secured for the bank - plus the interest earned on the CD or savings can help offset the fees and interest on the LOC.

When you get your business going and start to generate financial assets - then go back to the bank and try with those assets.

I would start with local or regional banks who may really want your business (national banks will probably laugh you out the door) or credit unions who support your community and will be more willing to help.

Business Money Today
www.BusinessMoneyToday.com

a line of credit

Do you accept credit cards??
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