Franchi Posted December 6, 2011 Report Share Posted December 6, 2011 Considering a Business Line of Credit and doing all my research now on them, wanted to see folks feedback who have actually used them before. Be using it to buy inventory to resell on a proven product, no worries about reselling, just figuring out all the math on profit ratio. I've read that 9 to 15% is average, depending on credit and business history, of which I have none but excellent credit. Be looking at starting out with a 10k one, possibly more later but would want to run a 10k one for a year or so before dipping further into it potentially. Quote Link to comment Share on other sites More sharing options...
KennyFKINPowerz Posted December 6, 2011 Report Share Posted December 6, 2011 Chase has a pretty good set up in coordination with the SBA. When I did mine it was 25k back in 2005. Quote Link to comment Share on other sites More sharing options...
Franchi Posted December 6, 2011 Author Report Share Posted December 6, 2011 I would check Chase first as I have most of all my regular accounts with them and been pretty happy with their service. Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted December 6, 2011 Report Share Posted December 6, 2011 Considering a Business Line of Credit and doing all my research now on them, wanted to see folks feedback who have actually used them before. Be using it to buy inventory to resell on a proven product, no worries about reselling, just figuring out all the math on profit ratio. I've read that 9 to 15% is average, depending on credit and business history, of which I have none but excellent credit. Be looking at starting out with a 10k one, possibly more later but would want to run a 10k one for a year or so before dipping further into it potentially. Are you a homeowner with positive equity? An easier and cheaper option would be a cash-out home refinance. This is something I can assist with. If you'd like, please feel free to contact me at 614-339-1206 or mstock@usavingsbank.com and I would be happy to run some numbers for you. If you are not interested in something like this, then I would suggest contacting the SBA directly and seeing what kind of grants are currently available. They are a very helpful group and may have some 'free' money available for you if you are willing to jump through their hoops. -Marc Quote Link to comment Share on other sites More sharing options...
Franchi Posted December 6, 2011 Author Report Share Posted December 6, 2011 I am a home owner with a good bit of positive equity, I'd def would want to look into the pro's and con's of a cash out home refinance but not opposed to the idea either, I'll look into it and get back to you. I'll check out the SBA as well, thanks for the tips! Quote Link to comment Share on other sites More sharing options...
AJ Posted December 6, 2011 Report Share Posted December 6, 2011 We are working on doing it now to expand our business. Chase is the largest SBA lender in the country but hunnington is the largest in the area with the best chance to get a loan from. Quote Link to comment Share on other sites More sharing options...
Linn1647545492 Posted December 6, 2011 Report Share Posted December 6, 2011 If you are only looking for a $10k line of credit you can get busienss credit cards with much lower interest rates. Now, if you are looking for a CASH line of credit that is something different. Citi https://creditcards.citi.com/credit-cards/all-business-credit-cards/ Huntington https://wwwa.applyonlinenow.com/USBCapp/Ctl/entry?sc=UABDQR&pid=csbc Discover https://www.discover.com/credit-cards/business/compare-discover-cards.html Chase https://www2.chase.com/credit-cards First National http://www.firstnational.com/001/html/en/small_business/prod_servs/card_prods/bus_credit_cards/bus_credit_cards.html?utm_id=58 Amex http://www262.americanexpress.com/business-credit-cards/ Key Bank https://www.key.com/business/credit-cards/business-mastercard-credit-card.jsp If you want to build busienss credit let me know, as I have been helping business do so for over 5 years. Here is some great information about the different types of funding on our website. Make sure you are incorperated and have a tax-id before you do anything. https://www.gobignetwork.com/funding-101 Quote Link to comment Share on other sites More sharing options...
Linn1647545492 Posted December 6, 2011 Report Share Posted December 6, 2011 Are you a homeowner with positive equity? An easier and cheaper option would be a cash-out home refinance. Do not do this. If you are only looking for $10k you should look into Micro Lending or specifically a Micro Enterprise loan. How old is the business? Is it generating any revenue? Most lenders will ask for the last 6-12 months of banks statments. Quote Link to comment Share on other sites More sharing options...
Franchi Posted December 6, 2011 Author Report Share Posted December 6, 2011 It's about a year old, I've been doing it on the side, payments mostly via Paypal, and all under the table here and there but it's been consistently profitable and I've kept pretty detailed records so I've seriously considered expanding, in talks currently to the manufacturer of the product to become a dealer but figuring out now how I would do the 10k buy in. It's not like this would become my fulltime job, just something I would do on the side in addition to my career. So far I've been able to pull a consistent $500 to $800 in profit monthly with average gross sales monthly of about $2100 to $2500. Quote Link to comment Share on other sites More sharing options...
Linn1647545492 Posted December 6, 2011 Report Share Posted December 6, 2011 It's about a year old, I've been doing it on the side, payments mostly via Paypal, and all under the table here and there but it's been consistently profitable and I've kept pretty detailed records so I've seriously considered expanding, in talks currently to the manufacturer of the product to become a dealer but figuring out now how I would do the 10k buy in. It's not like this would become my fulltime job, just something I would do on the side in addition to my career. So far I've been able to pull a consistent $500 to $800 in profit monthly with average gross sales monthly of about $2100 to $2500. Before you look for funding you need to do at least these 4 things. 1) If you are not incorperated do so at the link below. http://www.sos.state.oh.us/sos/Businesses/businessServices/forms/533a.aspx 2) Tax-ID here https://sa1.www4.irs.gov/modiein/individual/index.jsp 3) DnB - Duns number http://fedgov.dnb.com/webform/pages/CCRSearch.jsp 4) Set up a bank account for the business this way you can show positive cash flow for the business. At the end of each month you have to show there is still money in the account. From your response it sounds like you are just operating a business under your name. You need to separate the two even if you are not generating much revenue yet. Quote Link to comment Share on other sites More sharing options...
Franchi Posted December 6, 2011 Author Report Share Posted December 6, 2011 Good info, thanks. Yes, so far I've all just been doing it under my name, never started it to make a business out of it, just saw a potential way to earn a little extra mod money for my cars. lol Quote Link to comment Share on other sites More sharing options...
Linn1647545492 Posted December 6, 2011 Report Share Posted December 6, 2011 Good info, thanks. Yes, so far I've all just been doing it under my name, never started it to make a business out of it, just saw a potential way to earn a little extra mod money for my cars. lol If you have any questions don't hesitate to ask even if you don't plan to grow the business much you still want to have it setup the right way. Another great sources for funding are credit unions. Quote Link to comment Share on other sites More sharing options...
Brandon Posted December 6, 2011 Report Share Posted December 6, 2011 If you are selling on eBay or Amazon and have sold that say 10k gross, be prepared for them to file taxes on the sales you have processed ( I do not know the name of the form ). You will want to form a LLC immediately as Jon is recommending. Quote Link to comment Share on other sites More sharing options...
Franchi Posted December 6, 2011 Author Report Share Posted December 6, 2011 I have sold some stuff on ebay but definately not the bulk of it. Ebay fees suck. lol Quote Link to comment Share on other sites More sharing options...
Aaron Posted December 7, 2011 Report Share Posted December 7, 2011 I can get you in touch with a banker at Huntington if you would like. Let me know. Quote Link to comment Share on other sites More sharing options...
Mensan Posted December 7, 2011 Report Share Posted December 7, 2011 You are also losing out on tax savings by not incorporating as well. Quote Link to comment Share on other sites More sharing options...
Franchi Posted December 7, 2011 Author Report Share Posted December 7, 2011 /\/\ How so? Could you give me an example? Quote Link to comment Share on other sites More sharing options...
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