OfflineLately there's been a lot of buzz about business credit. On how you could get certain banks to loan a specified amount of money for your business operation with out having to use your personal credit what ever the condition of that is.
I was wondering if there was anyone with in the DG Family that has been able to use business credit successfully for your RE business and what the process is.
Awaiting your feed back.
Gene
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"It's not what happens to you that determines how far you will go in life,
it is how you handle what happens to you.
Zig Zigler
Hi Eugene,
I haven't gotten a business loan from a bank yet, but I have been building my business credit for the last year or so... I first opened my LLC, then got a couple of retail business cards, then a business visa card, which I have been using regularly and paying promptly. My next step is to try to get a business line of credit instead of a business loan, mainly because a business loan is supposedly used for making a large purchase for your business, and a business real estate loan is for (business) owner occupied properties; also, the line of credit I could use it over and over with a smaller interest rate than the business visa....I think it's easier to get a business loan if you build a relationship with your bank....
Valerie
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Thanks for sharing. I didn't know the difference in a business line of credit vs. a business loan.
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From what I have been told, I'm still gathering information, a business loan is money that a bank will loan based on your personal credit for your business and you start to make payments within 30 or 60 days. The full amount is given to you in a check and you put the whole amount in your business account and you use it as you see fit.
The business line of credit is again a loan from the bank in your company name that you may or may not be required to personally guaranty. You actually get checks that you can use as you see fit. You start to make payments after you use the money at a lower interest rate than a business loan. Some bank will assign a certain amount, or credit limit to these accounts. As long as you make the monthly payment there is no specified time of repayment, with in reason I guess. This is the type of line that I'm looking for. I'm still doing the research on this so if I find anything that will be of value in sharing I will post it.
Thanks,
Gene.
"It's not what happens to you that determines how far you will go in life,
it is how you handle what happens to you.
Zig Zigler
http://www.deangraziosi.com/real-estate-forums/financing-and-credit/5696...?
Lots of information in there on getting started.