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Old 08-04-2019, 05:07 PM
 
1,318 posts, read 2,344,319 times
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Hello,

I recently been laid off from my full time job and I have been working on starting my own business.

My average credit score is 620, I am currently collecting unemployment benefits and starting my own business.

I would like to start opening a business line of credit so I do not risk my savings emergency money.

My only reoccuring debt is a $400 per month for car note.

Questions:

1. Can I get a business line of credit with a credit score of 620 and not working? If not, do you recommend I wait until my credit score is higher before applying for a business credit line? I am hesitiant to apply for a business line of credit because if I get rejected it will reduce my score.

2. How much of business line of credit can I recvieve?

3. Where would be the best place to apply for a business line of credit?

I really appreciate everyone thoughts and comments.

Thank you kindly.

Last edited by darrell2525; 08-04-2019 at 06:29 PM..
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Old 08-04-2019, 05:13 PM
 
1,374 posts, read 1,016,989 times
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If you can expect it to come with a very high rate. You'd fall into a new business program at best, I've seen unsecured lending in the high 20% range for business loans.
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Old 08-04-2019, 05:14 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
32,432 posts, read 59,122,548 times
Reputation: 35560
Probably not.

I had a business, and applying for a loan or lease required two years of business checking account statements and profit loss statements. With no business history, and no current job, what is their evidence that you will be able to make the payments?

There are places that make business startup loans, but they will require a credit score of 680 and charge a high interest rate.
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Old 08-04-2019, 05:33 PM
 
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Quote:
Originally Posted by ericp501 View Post
If you can expect it to come with a very high rate. You'd fall into a new business program at best, I've seen unsecured lending in the high 20% range for business loans.
Thank you ericp501 so much for the response.

I am just really trying my best to make good execution planning.

Can you please share what the meaning of business program means?

I am planning to go to Wells Fargo in the morning.

Thanks,
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Old 08-04-2019, 06:00 PM
ERH
 
Location: Raleigh-Durham, NC
1,289 posts, read 1,810,602 times
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Many entrepreneurs use personal credit to bootstrap their businesses. They tap into their home equity, borrow against retirement savings, max out personal credit cards, etc.
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Old 08-04-2019, 06:16 PM
 
1,318 posts, read 2,344,319 times
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Quote:
Originally Posted by Hemlock140 View Post
Probably not.

I had a business, and applying for a loan or lease required two years of business checking account statements and profit loss statements. With no business history, and no current job, what is their evidence that you will be able to make the payments?

There are places that make business startup loans, but they will require a credit score of 680 and charge a high interest rate.
Thank you so much Hemlock140


You are right and I appreciate you.

Questions please:

1. May I please have your advice for my best approach for obtaining a business line of credit for my business? This way I have a plan moving forward. Do you think I should proceed with high interest credit loan or increase score first?

2. Do you know places where I can get business startup loans?

Thank you
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Old 08-04-2019, 06:18 PM
 
1,318 posts, read 2,344,319 times
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Quote:
Originally Posted by ERH View Post
Many entrepreneurs use personal credit to bootstrap their businesses. They tap into their home equity, borrow against retirement savings, max out personal credit cards, etc.
Thank you so much ERH, I appreicate your response.

I am currently renting right now.

But I do have a credit card with limit up to $300. Perhaps I should ask for a credit card increase up to $3000 for my current business expense that is coming in the next 4 months.

What do you think on this idea?

Thanks,
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Old 08-04-2019, 08:07 PM
ERH
 
Location: Raleigh-Durham, NC
1,289 posts, read 1,810,602 times
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See what Wells Fargo says, then pursue the credit increase as Plan B.
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Old 08-04-2019, 09:15 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
32,432 posts, read 59,122,548 times
Reputation: 35560
Just google “business startup loans” and your city and there will be many. In Seattle I get over 20, and some are legitimate BBB approved, others may be sending someone to break your leg if payments are late. All are going to charge high interest rates, but you really have no choice unless you have a rich and generous relative.
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Old 08-05-2019, 08:44 PM
 
1,318 posts, read 2,344,319 times
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Thank you all for the good responses.

I visit Wells Fargo, and after speaking to a Finicial Advisor , I decided to focus on increasing my credit score to above 720 to obtain a good interest rate on business loan or business credit line. I will still pursue my business goals AND focus on increasing credit score.

Is there any other advice you can please share with me on how increase my chances of recieving a good business line of credit or business loan?

Thank you so much.
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