What to do with my Home Depot LoC

Question

Hi fellow investors!

I got approved for my Home Depot commercial account! However, I don't have any projects going right now and probably won't for a few months. Since I've been working on my business credit, I'm worried about not having any transactions for a prolonged amount of time. Would you hold the account until you have something working for yourself? Or would you allow someone else to use it in the meantime to keep it active? Any ideas/advice would be helpful.

Jonathan Culliver · Answer

Business LOC are reviewed annually so if you don't use it at all within the first year the line amount could be decrease or closed. I'm not sure about Home Depot but most banks would like see it revolve. With a commercial credit account I'm assuming the transactions are treated like a credit card.

Teniecha Cowart · Answer

Thanks @Ari Taleghan... I disagree with you a bit on the lack of conversations on business credits here on BP. There were quite a few recent, very informative posts. I basically started with an aged corp then built it's credit worthiness.

Teniecha Cowart · Answer

Thanks @Jonathan Culliver I didn't know they reviewed it annually. It isn't a revolving account though, it's a net 60. I'm hoping that works out the same even if the transactions are small.

@Eddie T. I'm thinking that's the route I'm gonna go. I do have a friend that could give me some cash up front, I just wish they had more of my credit line to use, lol. I doubt they would bat an eye at me using anything less than %50.

Eddie T. · Answer

@Teniecha Cowart If you have a friend that is going to give you the cash upfront for the items then sure use your account to show some use.

What to do with my Home Depot LoC

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