Where is the best place to get a line of credit for my Start-up business?

Question

I have a start-up business. I haven't sold or bought anything, due to the fact I don't have any start-up funds. I have never used a credit card so I have no clue what my credit score is or even if i have one. I need a line of credit of at least $100,000. I don't have anything to use as collateral except stock in my company. Where can I get a line of credit that my business would qualify for? And yes I do have a business plan.

My business plan has down a Line of Credit as the source of start-up funds and/or investors i.e. selling shares of the company. But regardless I need at least $100,000 to start it up.

I live in Idaho. Hopefully that covers enough informationwithout me having to make to many "Add details" hehe.

Answer 1

First, you will need to draft a business plan for your company. Hopefully you have already done this. If not, it is going to be a requirement for just about anyone wanting to either invest in your business or loan your business money; banks, investors, vendors, you name it.

Your LOCAL bank should be the best source of captial for a start-up business. But, be warned, loan officers prefer to loan money to established business that simply need an infusion of capital to grow. As a business friend once told me, "Poor people need to borrow a little bit of money. Rich people need to borrow a lot of money." Banks and other lending institutions prefer to loan money to the wealthy. Why? Two reasons. First, there are assets to back-up the loan. Second, it's easier to put together one deal for one million dollars, than it is to put together ten deals at one hundred thousand dollars each.

Good luck!

Answer 2

Get a cosigner or guaranteur, it's your only way. Otherwise you'll be paying through the nose in interest. Those places that offer loans without collateral will charge the highest interest possible, and you may struggle with it.

I suggest first making sure that $100 000 is the bare minimum. If not then strip it down, find the bare minimum. A business can always grow, but that huge of an investment doesn't guarantee success, by borrowing less you have less liabilities. So go to the bare bones on this one.

You may wish to take on a business partner that can cosign on a loan, or guarantee it, in exchange for stock or a share or whatever.

Your only other option is to seek out seed money from venture capitalists, but this should be used as a last resort, as the deals are usually worse than a bank loan or a business partner. Venture capitalists want a huge return, they're in it for money, not success.

Find out if you have a cosigner or guaranteur in your family, someone with a house maybe, or find several. If you don't have that then you'll have to oursource it, which means networking with other businesspeople. Check out a small business center in your area and go to events there, or try doing it through the net.

But no matter what, doing it alone is not your best bet here.

Answer 3

I don't know what State you live in so it's hard to answer your question. California has The Small Business Association and they help you with this exact thing by steering you in the right direction and assist you in meeting the right contacts. If you live in a different State go to your town Chamber of Commerce and find out if you have this type of business service where you live. Ask your Chamber for suggestions. I think the bank will disappoint you as you have no collateral, and your credit needs to be pretty emulate. I would comb the net also for start up business funding. Good Luck~

Answer 4

Welcome to Real Life !

A businessman is someone who can turn dirt into money. If you need 100k$ to finance your startup, you may have a few things to consider before going further.

Your bank is the first place to go, but you'll need to find a way to earn big money first. I bet your business is a good idea, but you need to show your capacity to find clients first. Maybe you'll have to work for competitors for a while, but you absolutely need to bring money home.

Save a lot of money : enough to pay your salary for the first 6 months of the startup. (No bank will do a business loan if they know the owner can't take a paycheck if there's no loan ! they are lenders, not partners !)

Then save half the amount you need for the company to start. Ask a lender (or partner) the other half.

And in order to build your credit, you'll need to get a credit card first.

Good luck !

Answer 5

You could take your business plan to your bank and apply for a loan, but chances of getting that much of a loan, unsecured, are probably slim to nil. Normally people save up much of the money they'll need to start a business. If you don't have a fairly decent amount of your OWN money to put into your business, it's not real likely that someone else, bank or otherwise, would invest that kind of money.

By the way, part of a business plan is how you are going to finance it. What does your business plan have for that?

Answer 6

I would try prosper.com! Its Ebay to lenders. Log on and they verify your information and get you ready to begin. Once you are listed, you decide what you want to borrow and your tops of interest rate. Then lenders bid on you!! Guaranteed Financing! This is the best place to get any additional help as a borrower for any situation you may encounter

Answer 7

venture capitalists could be approached