Real Estate Investor · London · Member since 2008 · 3k+ posts · 74 votes
18y
Does the company have a decent balance sheet? How is the P&L?
Are there three years of tax returns filed in the name of the company (not a sole LLC where the taxes were filed under the individual member's SSN)?
Any lender will want to know more than the company is 6 years old. They will want to the company will have no issues paying the bills. Hence income after expenses (gross profit), lots of assets that can be sold off and other things are going to be important.
John Corey
PS. While I like avoiding high fees I find that a good deal can be worth a reasonable amount. In my discussions with banks that provide lines an annual charge of 0.5% to 1.5% is what they want to provide a line. Prime plus or LIBOR plus on the money outstanding.
well, with even banks like WAMU and Wells, I'm getting unsecured lines of 50-100k with stated income/stated assets. Nothing more than good personal scores and proof of incorporation with the state. other banks will match the lines once i get them.
Real Estate Investor · London · Member since 2008 · 3k+ posts · 74 votes
18y
Originally posted by "tmillington":
well, with even banks like WAMU and Wells, I'm getting unsecured lines of 50-100k with stated income/stated assets. Nothing more than good personal scores and proof of incorporation with the state. other banks will match the lines once i get them.
$50K to $100 is a bit short of what you were asking ($400K to $500K). I expect your company and your personal details support the lower amount so the banks are willing to sign up.
Build a track record with the lower amounts. 1 to 2 years later you can grow the lines if you can show a good case.