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Unsecured Revolving Business Lines of Credit

solutionssolutions subscriber Posts: 2
edited August 2007 in Startup Funding
Does anyone know of legitimate sources that will provide unsecured revolving business lines of credit?  Anyone have ever used such a source and results were favorable?Please advise? Help? Any sources or suggestions will be appreciated
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  • ToddFToddF subscriber Posts: 3
    yep we have 2 lines of credit. one for 20K and another for 58K. The main thing the bank is going to want to see is the last 3 years of your companies revenue (tax reports). Then they usually base the available line of credit from the total amount of the year. So if you business brings in 100K then the bank might offer 75K. Just make sure you get the best rate possible. We ended up using Charter One, they`ve been great for us. ToddF2007-8-13 9:59:24
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  • solutionssolutions subscriber Posts: 2
    LisaPR thanks for this info.
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  • solutionssolutions subscriber Posts: 2
    ToddF, thank for the info.  We are looking for one with no collateral required.  Our business is young, and has not really made the numbers you`re talking about solely because of lack of funding to get things going.  Any lender right now that will provide business line without collateral.
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  • solutionssolutions subscriber Posts: 2
    boneill, thanks.  I`ve visited the site and it is a bit confusing.  It appears the lending is from multiple sources  Lets say I need 10K, then person a can lend 1k, person 3K,... etc and more will lend until I get a sum of 10K. Does this mean I have to pay all these lenders back and not just one source.  Not sure how their system works.
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  • robertjrobertj subscriber Posts: 0 Member
    Does anyone know of legitimate sources that will provide unsecured revolving business lines of credit?  Anyone have ever used such a source and results were favorable?Please advise? Help? Any sources or suggestions will be appreciated
    For the most part it depends on many factors. The first one is how much you are looking for. As an example, some lenders who will provide an unsecured loan for start-ups - up to $15 K pretty readily - based upon a short form application.
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  • solutionssolutions subscriber Posts: 2
    LisaPR Good info. to know.  Thanks.
    solutions2007-8-14 19:9:3
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  • solutionssolutions subscriber Posts: 2
    Robertj, do you know what they ask on that short form.  I`ve seen advertisements of 100-500K unsecured no collateral. How true or realistic is this for startups or those companies in early stage of seeking capital.
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  • txbassguytxbassguy subscriber Posts: 0
    i think getting 100-500k with no collateral unsecured is very unlikely. if i`m a bank - why would i do that.there are banks that specialize in soho loans of less than 25k. i`ve got experience with one bank - but check with a local score.org office. what i had to do was open up a business checking account - they then deposit the money and then do automatic withdrawals for the length of the loan period.No Collateral RequiredNo Financial Records RequiredNo Tax Returns Required Fast-Track Approval & FundingNo Pre-Payment Penalty 10-Year Payback
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  • robertjrobertj subscriber Posts: 0 Member
    Robertj, do you know what they ask on that short form.  I`ve seen advertisements of 100-500K unsecured no collateral. How true or realistic is this for start ups or those companies in early stage of seeking capital.
    The one`s I`ve seen pretty much ask for the basic stuff. Some essential personal info along with some basic financial data. Generally, they will pull your personal credit info.
     
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  • solutionssolutions subscriber Posts: 2

    txbassguy     which bank are you referring to
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  • STFTASTFTA subscriber Posts: 3
    If I undersand how it works you make one payment to Prosper and they disperse to each lender their share of the loan and interest.
    However the worse your personal credit the less likely you are to get a loan.  What they don`t tell you is even before your request is posted Prosper runs a credit check on you.Lisa,Thank you for suggesting Prosper.com. I think the site is a great idea in general! People loaning other people money, that is how the world should work! I was able to secure a loan at a very good interest rate. I would suggest it to anyone... well to anyone who could pay it back that is.
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  • txbassguytxbassguy subscriber Posts: 0
    Innovative Bank - look for Soho Loan Informationhttp://www.innovativebank.com/site/soho.html
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  • solutionssolutions subscriber Posts: 2

    txbassguy    , thanks for this info.
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  • robertjrobertj subscriber Posts: 0 Member
    Robertj, do you know what they ask on that short form.  I`ve seen advertisements of 100-500K unsecured no collateral. How true or realistic is this for startups or those companies in early stage of seeking capital.
    If you are starting a business and all you will need to be "profitable" is $10-$20K, borrowing on an unsecured note or line of credit may be a plausible solution. However, if the business will require significantly larger sums of capital to be self-sustaining, then I don`t recommend this method as the first source of funds because it usually puts an immediate "payback burden on both the business and the individual.
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  • serrenityserrenity subscriber Posts: 0
    Hi Lisa,
    I have terrible credit after going through a chapter 13 which I`m still currently making payments. I like to start a business with business credit. Am I dreaming or what? Help
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