business line of credit or no pg funding

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business line of credit or no pg funding

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mryukky69

posts: 5

May 26, 2009 3:37 AM ET Quote Report Abuse

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I am seeking funding or loan,, I seen several sites on craiglist and numberous classified sites. stated we can get you funded through LLC or business lines of credit,

I want to know anyone who has got funded through this method. does it work? is this a scam? if you got funded how did u do it? any info is greatly appreciated

stevens

posts: 54

May 27, 2009 3:29 AM ET Quote Report Abuse

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Go to creditboards.com and look in the business credit section. You will learn everything you have ever wanted to know about business credit and what you need to do to get it.

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robertj

posts: 1458

May 27, 2009 10:11 AM ET Quote Report Abuse

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mryukky,

I`ve been working (for the past 9 years) with entrepreneurs who are seeking funding and here is what I know:

1. I have yet to meet anyone who has actually received a loan (cash) by buying a shelf corporation.

2. I haven`t met anyone who has built their corporate credit in 6 months to get a loan.

3. The (legitimate) lenders that I know will not (don`t) provide a loan to a corporation (or llc) which has little operating history (revenues and profits) without knowing something about the owners - and that means at least looking at their personal credit history. Also, to most of them a Paydex score has limited impact in their lending decision.

4. Whether a lender will insist on a personal guarantee depends upon several factors starting with the financial "strength" of the company. Unless it`s an SBA loan -where the request for a PG is virtually automatic.

How much capital are you trying to acquire?

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

mryukky69

posts: 5

May 27, 2009 12:29 PM ET Quote Report Abuse

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wow. ok that very funny there A section in this website helping someone or group how to incorporate your business.aka shelf or llc like so many ads or claims is it there. I ran into a 50 or more sites claiming the same thing. one even teaching in person or over conference calling to get starting , I was hoping some feedback on anyone else in this forum who have attempted and or recieved funding. I hoping for more but so far thanks for those who replied

I am a business owner for over 10 years. I have recieved funding from prosper and sba,. home equity loan, and just doing my research

robertj

posts: 1458

May 28, 2009 10:15 AM ET Quote Report Abuse

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If your business has been around for 10 years, it should have enough "performance history" to qualify for a loan.

I hope your research provides you the info you seek. If you`d like to discuss your specific situation (in confidence) send me a pm or contact me directly

LisaPR

posts: 53

Jun 02, 2009 8:12 PM ET Quote Report Abuse

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I am a small business owner as well and I have done my research and talked with several people in banking and the advice you have received so far is spot on. All SBA loans require a PG, all bank loans will at least check your FICO but may not ask for a PG if you can show three or more years of financials (preferably if they show a profit). Shelf corporations d not work sine the majority of them have no financial or credit history attached to them. The only they have is several years as an incorporated company. Since you have been in business for 10 years you do not need to purchase a shelf corp.

I also learned that those companies that offer t build your business credit within 90 days to 6 months do not do anything you can not do yourself for free or for hundreds less than most of them charge. They basically help you incorporate if you have not already done so and then proved you with a list of companies that will extend credit to your business. These are all trade lines (Dell, Home Depot, Office depot, etc.) Again you can apply for these on your own.

The credit cards they talk about are ones that you can find online and to date I have yet to find one that did not require a PG.

I have come to the conclusion that as long as your company is classified as a small business you will always have to give a PG. With that said, there are non-profits that administer loans that are not solely depended on FICO scores. You can do an online search in your area to find them. Also try www.accionusa.org they provide loans up to $35,000 to small businesses that are not heavily dependent on a high FICO.

Hope all this helps you.

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business line of credit or no pg funding

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