How can I obtain a $500,000 unsecured business line of credit?

Question

What are the exact steps I need to take in order to obtain such a big line of credit without being denied and where can I apply ?

Answer 1

With the tight credit markets these days, unless you have a successful business that's been in operation for a minimum of five years and you can show the lender your books, along with proof that the business is growing and you need the capital for expansion, your chances are absolutely zero. Even with all of this, your chances in the current credit climate are iffy. People are nervous.

Answer 2

Not going to happen. A line of credit is rarely given unsecured for a few thousand dollars, let alone the amount that you are trying to obtain.

You are going to have to rethink this in a more logical and achievable fashion.

Merry Christmas.

Answer 3

If 'intellectual property' is your 'security', with no patent complications attached, indisputable ownership and the whole thing wrapped up in a stunning presentation with attractive bottom lines, then you might be in with a chance with any number of the large banks, but you might be in with a better chance with a consortium of 'local' backers to whatever project you have in mind.

500k is a non profit making org. as far as any multinational is concerened. They don't see that small. It's a bug. Squash it!

You would have a better chance still, to ask for 5M stake with 10% (don't talk Real Numbers, it makes people nervous. Keep it to M's K's and %'s)... on the table as a 'good faith' action from the lender and the whole thing presented off the back of an envelope. It has been known to happen.

This business exists on lending money, when you get it right you have lent it to the the right people and if you blow it, nobody is on your side, they are over the fence making faces at you. No wonder they are nervous about small loans from small people.

If you are going into the mainstream think mainstream. Think like they do. Add at least two zeros to everything just as starters. Gives you a bit of negotiating room.
Don't arrive at any meeting looking like you spend money on clothes and hairdressers.Shoes and transport count. In that order. Both have to be appropriate. Don't smell of anything. That means booze, smoke, the other sex. Unfortunately you have to smell of money. No mean feat when you are on the other side of the till, without.

Cruise in looking like a fat fish with a good idea how to spend lots of money (not how to make,that's your problem. Think Spend), they will get the groundbait out.

There are many ways of doing this.
For example;
Never never arrive for a meeting or a presentation with a laptop and never never depend on yours working when you need it most. If you carry one habitually, before the meeting check it in at reception.

Presentations using your laptop can be a dangerous game. One slip of the mouse and your entire downloads from Mikes Apartment are there for all to enjoy. Especially bad news if there is networking involved. It happened (not to me I am happy to say, but it wasn't a pretty sight).

Put your presentation and reference material / notes whatever online,accessible from any internet cafe or handy WLAN. (look at getting it on an iPhone).....(waddayamean ya got no iPhone?!)
Using someone else's computer of course.
If it blues out, you don't. Their problem not yours etc...
"May I offer you a coffee while our technician sorts this out?"
...which is the way you want it to be.

You could better try micro finance. 50 locations with 10K or any other permutation.
Microfinance works well. Try it.
You can by using micro finance, assuming of course the idea is a good one and will show tangible profit, support your local community with the profits that would have otherwise probably ended up fueling GWB's helicopter. It's a Win Win if you pull it off. To actually know your supporters helps a lot.

Difficult to know what else to suggest not knowing exactly what you want the credit for. Can't buy much of a house with it.

Curious.

Malc at the bluecrane

Answer 4

Most likely you can't. Why should anyone lend you that much money with no security? Lenders are not in the business of assuming someone else's risk. If you have nothing to offer in return for a loan, you can't get a loan.

Answer 5

Walk into a bank with a gun. Joke!

You have no chance.

Answer 6

Wow! Thanks! I was wondering the same thing the other day