Posted by Rob on May 24, 2006 at 20:33:39:
thanks for the advise…
Rob
Credit Line for New LLC - Posted by Rob
Posted by Rob on May 23, 2006 at 20:07:05:
I just formed a new LLC and would like to find a bank that will give an unsecured line of credit for the business. I know many of the RE Gurus offer this information in their multi-hundred dollar coures but I do not want to pay to get this info. Any help?
Re: Credit Line for New LLC - Posted by dutch
Posted by dutch on May 23, 2006 at 21:48:40:
Almost impossible to do, regardless of what the guru’s say. It takes time and lots of personal guarantees.
Start by getting credit cards. Lowes, Home Depot, etc. You will have to personally guarantee. After a while, Capital One and some others will send you offers for a business credit card. Sign up, but again, you are also personally on the hook. CapOne will then start sending you offers for business loc loans. Again personall guarantee, but you’re getting there.
At the same time, you should be doing all your business under the LLC name, including at your bank. You should be hitting your bank and others in town up to do commercial loans to you. Again you’ll start up with personall guarantees, but eventually, you should be able to get a LOC just using the LLC assets. (You DO have assets in the LLC, yes? if not, credit to the LLC is a pipe dream).
Good luck.
Dutch
JagNag dot Com (Just A Guy Not a Guru)
Re: Credit Line for New LLC - Posted by Mike (Seattle WA)
Posted by Mike (Seattle WA) on May 25, 2006 at 13:05:47:
This advice is pretty spot on - I’d just like to add that strong personal credit will go a long ways in speeding up the process. 1 year after starting to build LLC credit, I’m just past has step 3 (CrapOne keeps wanting me to get LOCs - but already have a few smaller ones through the big banks.)
Also, many banks will want your LLC to exist for 2 years so they can see financials (for lines larger than 25-100K depending on the bank)