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    3 Replies Latest reply on Jun 6, 2011 2:10 PM by phanio

    Need to get a line of credit for my business

    SON LATINO Newbie
      I need to get a line of credit for $50,000.00 on my established business. I own this business for the last 3 years and was established in 1997. I will use $30,000.00 to buy a wireless store. I have very good credit, own a house. Can someone tell me if it may be possible to get a line credit for this amount?

      I was offered one by a broker, but they charge a 10% for their work and I don't trust them very much. Please help...
        • Re: Need to get a line of credit for my business
          LUCKIEST Guide
          Need to get a line of credit for my business.
          You say that you have very good credit, and own a house.
          Yes, it may be possible to get a line credit for this amount.
          Do you have an accountant??
          How about a Business Plan?? Every lender will want to see the plan first.
          LUCKIEST
          • Re: Need to get a line of credit for my business
            phanio Pioneer

            Are you looking for $80K - $50 for your existing business and another $30K to to buy a wireless store?

             

            If you are thinking about a business purchase, a line of credit might not be the best way to do it.  Most LOCs are required to zero out in a 12 month month period.  LOCs are great for inventory purchases or other short-term needs.  Then, when you sell off the inventory, you can use some of the proceeds to pay down the LOC.

             

            My suggestion is to separate them out.  If you need a LOC for your existing business ($50K or $20K) look for that separately.  Then, find a business loan to purchase the other business - with a low interest rate and at least a 5 year term - or 10 years with a 5 year balloon.

             

            You can use your existing business to qualify for the second business loan and then use the second business to pay off the loan.