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    7 Replies Latest reply on Dec 22, 2008 6:26 PM by ilyab0dner

    Need approximately $50k in unsecured loans...

    reverb Newbie
      Hi. I have a growing business and we're facing some cash issues. We have money coming in for projects that we're currently working on, but we're running short on cash to take care of day to day operations and taxes. We're a design/build contractor with a side business that does business in eCommerce.

      Could anyone direct me towards a good lender that can work with us?

      Any assistance would be great!

      Thanks in advance,

        • Re: Need approximately $50k in unsecured loans...
          NoBullFunding Scout
          You hear that sound? It's the avalanche of lenders on this forum who will soon be inundating you with out-of-this-world offers to help! (bad credit? no credit? No Problem!)

          Can you expand on your business? How long have you been around? What do your cash flows look like? Do you have a large backlog of work? How is your personal credit?

          • Re: Need approximately $50k in unsecured loans...
            LUCKIEST Guide
            Need approximately $50k, Welcome

            Tell me more. Who are you?? Where are you?? How long have you been in business??
            Do you have an Accountant?? A Federal I D Number??

            How long do you need the funds for?? And How and When will you pay me back??
            Do you have tax returns or a Business Plan that I can read??

            Talk to me, LUCKIEST
            • Re: Need approximately $50k in unsecured loans...
              mccloudis Newbie
              Same issue here that I resolved over the phone with BOA (at least for my purposes).
              I've had a technology construction consulting business for over 5 years structured as a LLC with it's own EIN# for all banking. I just recently had 3 projects cancel and one go into a 3 month "slow down" and was wondering if after all this time I might have to get a real job. A few weeks ago - I received a new contract with a fully funded project. Now I just needed to secure my cash flow for a couple of months while I finalized the contract since I normally go ahead and start the work- labor and travel costs only.

              I went to my BOA branch as was told small busness loans were all but dead or carried prohibitive intrest rates. I was very disappointed since I've done well over $1M while growing revenue each year. This year will be around $800k - why can't I get a small $30k line of credit or 60 day loan?

              To make long story shorter - I keep my business credit card paid each month so I "transferred" $15k to my business checking account to fund the next month while I get the contracts signed and can start billing. I told them I had some convenience checks and was informed - they would carry around a 20% interest plus a fee to use. If I "transferred" the amount directly from my credit card to the checking account using my routing numbers - it would be treated as a purchase. No transaction fee with an intrest rate of 10.5%.

              Just sharing my recent experiance ... It's just what I needed ... but I'm still confused why a business account that's had over $1M go through it - all labor, no equipment or inventory - would not be a slam dunk for an approved line of credit ...
                • Re: Need approximately $50k in unsecured loans...
                  NoBullFunding Scout
                  Mccloudis - Regarding your confusion "why a business account that's had over $1M go through it - all labor, no equipment or inventory - would not be a slam dunk for an approved line of credit", the key to being approved for a line of credit is personal credit score and historic cash flow. The amount your business reports in terms of revenue is pretty irrelevant, and the fact that you "put it through" the bank doesn't mean much to them. Banks WILL sometimes take into account the average balance you keep, but that will typically something that could help things go your way if the bank is on the fence about your request.

                  I'll give you an example...I once turned down a client, who get mad and came back at me with "I put hundreds of thousands of dollars through your bank!". I went and checked his average balance and it was something like $2,000. As far as a banker is concerned, a customer like that is that same as someone who opens a checking account for $2,000 and never touches it.

                  Overall, yes the small business lending environment is really tough, especially the SBA route. SBA lending is a $12 Billion business, and one-third of that depends on an active secondary market for loans, which is currently frozen solid. No secondary market = No SBA lending for many institutions. Hopefully washington will figure out something...and quick.
                    • Re: Need approximately $50k in unsecured loans...
                      mccloudis Newbie
                      Thanks for the clarification. I have a psrsonal credit score of closer to 800 than 750 - just discussed this last week with my banker as we have been considering moving and even without selling my current $130k house, they tell me I personally qualify for an additional $500k home loan since my only debt is my current home. (Note: my personal risk threshold will keep a new home purchase under $300k or less if the real estate market continues its correction.)

                      I discussed SBA loans with the bank when I first set up my company banking account 5 years ago. I still have a dream of diversifying my company and one day - use the "power" of my current consulting business to "finance" another business.

                      How is the best way to create "credit power" under my current company so that when the credit market thaws, I could possible use a SBA loan to expand my company into other endeavors that keep we awake dreaming of each night? Outside my business banking account and retirement funds - I have around $100k sitting in an investment account that is liquid. Should that investment account be under my EIN number and not my personal SS#? You hear about businesses creating their own credit .... will it always just be tied to my personal credit - and if I assume more personal debt - say with an additional home purchase - would that adversely affect my ability to secure business credit in the future?

                      Sorry for all the questions - the entire process of securing business credit seems to be a closely guarded secret that I hope one day to uncover... thanks
                  • Re: Need approximately $50k in unsecured loans...
                    jchit71 Newbie

                    Did you find the financing that you were looking for?
                    • Re: Need approximately $50k in unsecured loans...

                      A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are.When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own.


                      Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information.


                      Good luck,


                      Ilya Bodner


                      Small Business


                      Owner Initial Underwriting Group