Professional · Springfield, NJ · Member since 2017 · 25 posts · 8 votes
Has anyone successful obtained an unsecured business line of credit for an interest rate that is closer to single digits? If so, can you share both the financial institution you worked with and how you went about getting the loan.
I was planning on putting together a binder that has a summary page and behind the summary page I would have all my data. I planned to have a profit/loss statement for the past 3 years together with all of my real-estate that i own, pictures of the houses, leases to back up the rentals, and my finances all with a table of contents. I wanted to then go to some small local branches to see if I can get $100k or for an unsecured line of credit. I don't need the money but it is more for a rainy day. Is this a good idea?
Vendor · Brandon, FL · Member since 2016 · 71 posts · 20 votes
9y
Not single digit interest, more like 10% but unsecured and up to $300K. Based on your credit score and of course nothing crazy on your credit. About 3 weeks to fund though because they are banks. : /
Real Estate Consultant · Lancaster, CA · Member since 2014 · 423 posts · 223 votes
9y
My business partner has not been successful in getting unsecured business lines of credit. We have evaluated 3-4 of them and he went with Fund and Grow. He has only received one line of credit and it was an American Express credit card. He had better luck going to his credit union and getting an unsecured line of credit, but it's at 12%, and he has a 720 FICO. I have a credit score of 594 and my interest rate on 5-year unsecured loan from my credit union is 14.25% for up to $50,000.
Let us know how it goes, as I haven't heard real success stories from anyone.
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
9y
Boris Peyzner , unless you have a strong banking relationship and other business income, the bank will want a mortgage against the property.
Some banks might do a LoC but you are going to personally guarantee it.
Vendor · Brandon, FL · Member since 2016 · 71 posts · 20 votes
9y
Not single digit interest, more like 10% but unsecured and up to $300K. Based on your credit score and of course nothing crazy on your credit. About 3 weeks to fund though because they are banks. : /