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    2 Replies Latest reply on Nov 19, 2008 6:58 PM by NoBullFunding

    Unsecured loans?

    theGXP Newbie

      Hello, I'm a 1/3rd partner in an LLC here in CA. We've been running for about 3 years as a LLC and before that the business was a sole proprietorship (we 3 bought out and rolled into an LLC).


      Since 2005 our business has been doing fairly well and in 2008 we went from 1,000sqft to 2,200+sqft. The process of expanding was a little more than expected and now we find ourselves with a chunk of debt (credit card none the less!).


      My main question is, how common are unsecured loans? We'd like to get a loan to pay off our dept and pad us a little bit for the coming months (or years?!) What types of banks participate in these loans?


      If anything else is needed, please ask!



        • Re: Unsecured loans?
          BizHelper Newbie
          Hi Rich,

          I know of a few banks that lend Unsecured loans in California. Please email me for further discussion and information.

          • Re: Unsecured loans?
            NoBullFunding Scout
            Hi Rich,

            There is unsecured debt available, but getting access to it can be difficult. Many of the guys/gals you'll find (both on this forum and all over the internet) who claim they can get you large unsecured loans are typically not who you want to be dealing with. More often than not, they will charge you huge fees that amount to 10%-20% of the loan amount.

            If you have a strong business, it's possible to get unsecured debt. The business needs to demonstrate historical cash flow sufficient to cover your debt obligations. The principals will need to have strong credit profiles, and adequate net worth. Don't mistake unsecured for non-recourse, as they are NOT the same. Unsecured means there is no collateral. Non-recourse means that there are no personal guarantees. Non-recourse is very rare, even with the strongest borrowers.

            If you have a bankers already, go talk to them and get an idea of what they'll want to see from you in order to consider an unsecured loan.

            I hope that helps!
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