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    11 Replies Latest reply on Mar 19, 2008 2:45 PM by carson

    collateral loan?

    Yellow Box Newbie
      I am in need of a short term loan 90 days. Amount 10k, backed by equipement as collateral. Any suggestions? Thanks.
        • Re: collateral loan?
          DomainDiva Ranger
          Get a market value assessment on your equipment and contact a bank or an alternative financing institution.
            • Re: collateral loan?
              jgoldstein Newbie
              $10k is a very small business loan, and most banks won't have very much enthusiasm due to the low amount and the paperwork involved. Collateral on a loan this small is almost more trouble than a help.

              1. If your credit history is good, you may be able to borrow unsecured from a smal bank or local credit union. ASK!

              2. If you have unused credit card capacity, this may be another good option, and very easy to do.

              3. If your credit isn't strong, perhaps you have a relative (Mom, Dad, brother) that will co-sign and guarantee the loan.

              Good Luck!

              JERRY
            • Re: collateral loan?
              LUCKIEST Guide
              Need more info. Are you in business?? How long?? Showing a profit??
              Do you have a good credit history?? Do you have an Accountant??
              Why do you need the money??
              How about Equity Loans, Lines of Credit or Credit Cards??
              Good luck, LUCKIEST
                • Re: collateral loan?
                  Yellow Box Newbie
                  Thank you for answering my question. Our company is 6 months old, We ended up paying cash for everything. Now as we start to expand we realized we should have let our money build our credit for us. ( maybe a cd secured loan ) instead of paying cash. I prefer to establish credit in the company's name than use my perrsonal credit. kinda hard to do since we are 6 months new. The 10 k was just a figure we threw out there that could help us establish our credit history and not hurt us down the road. we figured it would take 60 - 90 days to repay, hoping that would help build our credit. The biggest thing for us is just establishing credit other than our credit cards thru the company. Thanks for your time.
                    • Re: collateral loan?
                      jgoldstein Newbie
                      Your company's credit rating will be established and grow as you use credit from suppliers; who in turn report to Dun & Bradstreet (D&B), a business credit reporting agency.

                      You can speed the process by borrowing $5k or $10k from a small bank or credit union, WITH YOUR PERSONAL GUARANTEE, and then paying it back promptly.

                      Until you have been in business for 24 months, the company's borrowing capacity is 100% dependent upon your personal credit score, and will require your personal guarantee. After 24 months, assuming your company is profitable, and pays its bills in a timely manner, the company may then be able to borrow without your personal guarantee. Bankers know that about 90% of new businesses close within the first 18 months, so they are cautious.

                      JERRY
                        • Re: collateral loan?
                          Yellow Box Newbie
                          That's what i"m trying to do. when you say a short period of time is that 3 to 6 months? thank you for responding to my post
                            • Re: collateral loan?
                              jgoldstein Newbie

                              A new small business loan, paid on time each month, will help you obtain more future credit. 3 to 6 months is a good place to start.

                               


                              Borrow in the company's name, with you as a personal guarantor. Most banks and credit unions electronically report their loan experience to the three major credit bureaus each month.

                              After you pay this initial loan off, you can then use the bank or credit union as a credit reference.

                              Then, you may want to do the same thing with a different bank or credit union to have a second reference.

                              After a year or two, the company should then be able to borrow on its own merit, if the financial performance is good.

                              JERRY
                      • Re: collateral loan?
                        LUCKIEST Guide
                        Yellow Box, I have replied before. However I just read about a web site
                        GATHERINGOFANGELS.COM who make short term loans.
                        Check out the site. LUCKIEST
                        • Re: collateral loan?
                          TJMorehead Adventurer
                          Hello Yellow Box,

                          Saw your post, and I just wanted to present my services to you for future reference. If you hadn't found a solution for your scenario, I'll be more than happy to assist you.

                           

                          Here is one of the programs my company offers: The CommunityExpress Loan especially designed for start-ups and emerging companies. There is no business plan required; no personal financial statements requested; not tax returns needed; no collateral required; no early payment penalties; no complex paper work; and no high interest rate. You only need a DBA (doing business as) certificate and a business checking account established in the name of the business.

                          Other funding programs available:

                          Government Small Business Loans up to $2,000,000
                          Equipment Lease Financing
                          Contract Financing
                          Factory Financing
                          Revolving Lines of Credit
                          Merchant Card Processing Services
                          Merchant Card Express Cash Advances
                          Business Credit Building 7 month Program
                          Credit Restoration Services

                          I'll be happy to help facilitate the appropriate funding program for you. My email is moreheadsconnections@gmail.com

                          Warm regards,
                          TJ Morehead
                          • Re: collateral loan?
                            carson Newbie
                            What locations is your collateral placed,can they be reached by an investor,give me a reply and also send detailed business plan to doncarson7@gmail.com