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    3 Replies Latest reply on Jan 13, 2009 12:23 PM by SQA_Mike

    Suggestions for LOC Options Please

    Itslikethis Newbie

      Looking for approximately 50K line of credit. I'm one of the top subject matter experts in my field. I've recently been offered an opportunity contract with a government group as an independant contractor. I formed an LLC in October so it's a new company. I'm the sole employee at the moment. My expenses are travel that will be fully reimbursed as part of the contract and of course salary for me. I'm a single gal and dont have an alternate source of income other than this new contract.

      I will need operating capital for approximately 75-100 days of start up. Basically 30 days of work and 45 days net to paid and reimbursed travel. Obviously, while waiting for reimbursement I'll be working and traveling - using funds.

      The cycle is travel & work, submit invoice, continue travel & work, submit invoice, get paid, continue travel & work, submit invoice, get paid... you get it. It's the first two cycles that need the LOC.

      My credit score is approximately 688 - 690 range. One bank has told me it must be at least 700 (I'm still checking with other banks). Does anyone have suggestions about where to find this line of credit? Suggestions of banks that might be able to work with my score? Other suggestions of organizations or other types of funding to try? At this point my business isnt paid via credit card so that is not a route open to me. I'm working in a fairly short time frame of a few weeks.

      I appreciate any suggestions.

      Thanks!
      Its Like This
        • Re: Suggestions for LOC Options Please
          BizSolutions Adventurer
          I may be able to help. Please email me so I may offer some solutions. Monique@accuratefinancial.info
          • Re: Suggestions for LOC Options Please
            moneyresource Newbie
            There are alternative sources that you may qualify for. Please contact me and we can discuss your situation further. moneyresources@hotmail.com
            • Re: Suggestions for LOC Options Please
              SQA_Mike Newbie
              Itslikethis,

              I own a consulting firm here in Boston and might possibly provide you the funding you need, if you have a signed and verifable contract with a known and verifiable agency. My firm provides consluting services to insurance companies throughout New England.

              Here is what I would do;

              1) Verify the contract price and duration and get your client to agree to send payments directly to my firm or a lockbox, for an agreed upon duration of the contract, usually 90 to 120 days.

              2) I will hold back a fee, usually a part of the hourly rate and provide you with a bi-weekly payroll and expense remibursment based on client signed and authorized time sheets.

              3) When I am paid by the company/gov agency, I reserve the agreed upon hourly fee for providing you a stable income.

              You would basically be a hired sub-contractor to my firm. So lets say you bill at 90.00 per hour, plus expenses. I would pay you 75 to 80 an hour plus expenses.

              If you contract in all inclusive, I would need to be sure you have provided enough in your hourly rate to cover both your time and expenses. So if your all inclusive rate is $140 an hour, I would pay you 90, plus expenses (with a not to exceed amount of 25 per hour or 1000 a week). But you need to be clear if you did an all inclusive and you work less than 40 hours, you have less expenses to work with.

              I do this all the time. So to answer your next question, what happens to your client? After the agreed upon period of 3 or 6 months and my having received all the payments due per the agreement, you woud then take over the contract yourself.

              I currently have several consultants I do this with, including a gentlemen from Phoenix Az. who comes to Boston every week.

              Anyway, if you have an interest, drop me a line at kalinowski.mike@gmail.com.

              Regards,

              Mike