Leveraged Line Of Credit
I have been looking into a business Line of Credit and have a few questions:
- I notice that some people can obtain a huge Line of Credit based on a very small piece of collateral (let's say a $500k LOC on a $100k collateral). Is this feasible because they are using a business Line of credit? I know HELOC's are only based on the equity position.
- I assume you can use the funds to do as you wish, i.g., purchase a flip and rehab all with the same LOC.
- what are the typical requirements to obtain a business LOC? I notice some lenders require 6 mo's of business activity and at least 50K of annual revenue. How much does your personal credit factor into this loan type? Any other requirements that I need to know?
Any other info would be highly appreciated.
Thank you