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Business line of credit

Old 02-04-2018, 12:38 PM
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Default Business line of credit

I am currently looking for a line of credit around $50,000.
Iím in Construction and have a couple big commercial jobs coming up that this would be good to have if needed.
Iíve been turned down at Wells Fargo mainly because I donít bank with them. My bank is great with personal loans but not so much on the business side. Any recommendations on where to try?
Old 02-04-2018, 12:44 PM
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Try Copperline. A bit higher rate, but if you use it as intended, it should work ok.
Old 02-04-2018, 12:44 PM
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The easiest way and generally with the lowest interest would be a home equity line of credit if you have that option. Bank did one for us with no fees and it's in the high 3 to low 4% range. Interest is deductible as a business expense.
Old 02-04-2018, 12:48 PM
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Originally Posted by nar80ss View Post
I am currently looking for a line of credit around $50,000.
Iím in Construction and have a couple big commercial jobs coming up that this would be good to have if needed.
Iíve been turned down at Wells Fargo mainly because I donít bank with them. My bank is great with personal loans but not so much on the business side. Any recommendations on where to try?
Does your business have credit history? What are your revenues? Can you show proof? Business loans are not easy to get. In most cases you will have to personally guarantee and perhaps even back with personal assets.
Old 02-04-2018, 01:10 PM
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You will definitely have to personally guarantee it. You will need to have assets and good credit to get the $50k, I would try other local banks in the area. WF is a terrible bank to deal with, I had a $1M LOC with them when they took over from Wachovia and they made the renewal process a nightmare so I went to TD Bank and other afterwards. You should Establish a relationship with a bank that can meet your business needs. Also if you think $50k would sufffice they get a $100k LOC so you ensure room.

One last thing, are you profitable?
Old 02-04-2018, 01:18 PM
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Do you have an AMEX card ? they offer some crazy business credit lines / advances . I get stuff in the mail from them on a regular basis !
Looked like a pretty good deal with small fees, i'm a business platinum card holder.


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Old 02-04-2018, 01:22 PM
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I bank at a small bank as well but they were able to extend a similar line of credit to my construction company. I have not used it in the year I have had it, but it is nice to know it is there.
Old 02-04-2018, 01:25 PM
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Find a small bank in your area that deals with small businesses. I had a horrible time getting somebody to finance my first construction project till I came across the right bank. Stay away from the large banks they don’t want your business.
Old 02-04-2018, 01:28 PM
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Try TD...
Be prepared to expose your books, assign personal assets, personally guarantee, and review quarterly.
Expect fees for origination and renewal.
Old 02-04-2018, 01:35 PM
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Be real careful shopping for credit. They will all pull credit reports then turn you down because you have too many.

Are you near Jax FL? If so PM me.

Open a Business Account with the bank you want to deal with. I opened some years ago with many institutions. I never close all the accounts. Leave a little parked in savings at least. You never know when you need to visit them. Being a 20 year customer at any level is a good thing. Some have savings for years so now if i go there i have history with the bank. Next open checking for your business. Make sure to go inside in person and make it a point to find someone you like to deal with there so they know you by name. Go in often and make deposits and withdrawals. Get a credit card from them. Use it at least a little and pay it off every month.

THEN ask for the business line as if it really doesn't matter but you might be interestsed. As long as your credit doesn't suck you should get something. Might not be 50k but take it. Use it. Borrow 3000 then pay it back over and over. NEVER go over 30% of the total and always pay it down quickly. Then after a few months let it be known you could use a larger account sometimes for business purchases or property. I told them I wanted to be able to buy auctioned houses and they bumped me up twice so now that line really is there for me to use (not abuse) for pretty much anything I want without needing to do anything but ask the clerk for a cashier's check.

DON'T GET CAUGHT BY THE CREDIT CARD TRAP. THEY CHARGE WAY TOO MUCH INTEREST. PAY THEM ALL OFF EVERY MONTH. PERIOD.
Old 02-04-2018, 01:37 PM
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Originally Posted by ytmorris View Post
I bank at a small bank as well but they were able to extend a similar line of credit to my construction company. I have not used it in the year I have had it, but it is nice to know it is there.
You should take that account for a walk, even a very short one. Buy a car and pay it off in 2 months. Withdraw a couple grand for walking around money and pay it back by end of month. Activity leads to increased lines.
Old 02-04-2018, 03:35 PM
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Originally Posted by nar80ss View Post
I am currently looking for a line of credit around $50,000.
Iím in Construction and have a couple big commercial jobs coming up that this would be good to have if needed.
Iíve been turned down at Wells Fargo mainly because I donít bank with them. My bank is great with personal loans but not so much on the business side. Any recommendations on where to try?
If your current bank wonít help, you need to go to another small local bank or credit union. Probably move all of your business to the new bank. Wells Fargo is not going to be your answer. We have relationships with a small local bank and also a credit union. My LOC is at the local bank, but the credit union has also offered to fund a LOC as well. Itís good to have choices.
Old 02-04-2018, 03:47 PM
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We've had the exact opposite experience with WF. Have LOCs with WF and a regional bank and small bank. WF gave us a line twice the other two when we started with them. The regional bank went through some adjustments a few years ago and lowered our line/raised the rate, no real reason given other than they are no longer based in the eastern part of the state. The small bank keeps saying they want to be our primary but they never/can't follow through. Then WF came out of the blue and doubled our line with them. It has been surprising as we weren't expecting them to be the one to be so easy and personal.
Old 02-04-2018, 04:17 PM
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A line of credit is fairly easy to get with a national bank, $50k is a little harder to get than $20k. Chase business and Amex business CC would probably get you about $20k with decent credit.
Do you really need $50k or would $20k work? Not easy to get a business loan.
Old 02-04-2018, 04:28 PM
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QuickBooks offers a working capital loan. Not sure the max. I see the pop up frequently when I log on.
Old 02-04-2018, 04:31 PM
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You might want to talk with your CPA. We have a substantial construction accounting practice and part of our service offerings is to assist those clients with banking and bonding. Your CPA should have those relationships. If not, might be time to find one who does.
Old 02-04-2018, 04:53 PM
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Originally Posted by Jumpsummo View Post
You should take that account for a walk, even a very short one. Buy a car and pay it off in 2 months. Withdraw a couple grand for walking around money and pay it back by end of month. Activity leads to increased lines.
No it wonít, thatís a credit card not a LOC
Old 02-04-2018, 08:20 PM
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Lots of great advice here. In your case, you really should have a relationship with a commercial banker, preferably at a smaller institution that will handle both your personal and business banking. Go online and download a personal financial statement and fill it out. Your assets should be *at least* twice your total debt - that’s what they’re going to look at first, then they’ll check how consistent your deposits are.
Old 02-05-2018, 05:19 AM
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Originally Posted by Saltydawg15 View Post
No it wonít, thatís a credit card not a LOC
Okay I guess made it all up. Need a screenshot? 20k got upgraded to 40k. Then when I got upgraded to 100k they didn't close out the 40k. Now I just use both sparingly to keep they exercised. All inside 2 years.

I may be working off bad info sometimes but I don't give a damn about any of you enough to need to lie.

If he's in Jax I can walk him into my bank for a face to face intro to those I deal with assuming we do okay over a cup of coffee and he's not a danger to himself.

My intro will not be a sponsorship. Here's a guy who's not liking his banker. I told him I love mine so here he is. She'll treat you right. You two sit down and do some business. That's all and I've done it before. It's all about seeing the right people. Every branch won't be the same.
Old 02-05-2018, 05:40 AM
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I used to borrow money against uncollected invoices.

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