Board Topic: Business Line Of Credit
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Business Line Of Credit

Posted by: Terry Dec 20 2004, 05:50 PM
Does anyone know the best sorces for getting a line of credit for our 5 month old business. We buy and place ATM machines in retail locations and collect the transaction fees. We are looking for a sizeable line of credit that will allow us to keep up with customer demands.

There are so many money brokers on the net who do nothing but try to scam you out of your money and it is getting hard to tell the good guys from the bad.

Thanks

Posted by: The Fox Dec 20 2004, 05:58 PM
Terry -

There are two primary ways a bank/lender will secure your line of credit: (1) with the receivables and inventory of your business, and/or (2) with real estate. A line of credit could easily be established if you have equity of any of those locations. Sounds like your business is profitable, so that will also help.

That said, I'm not sure a line of credit is the best vehicle for your needs. A lender (and borrower!) will want that line rested (paid down), and if you are using this to purchase equipment for your operations, I would suggest a term loan.

If these ATMs are paid off very quickly, then a line may be what you need. Or perhaps a draw note or non-revolving line. All I'm saying is there could be a variety of products to perfectly fit your needs! A good lender will help you determine this after careful consideration of your situation.

Visit/call your local banks, or contact me. Good luck to you!
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