Forums: Discussions for entrepreneurs and small business.

I wish I had family resources to pool from but they are all strapped with their own financial concerns. Any advice would be great!

 Thanks Again,

J

Along the lines of raising capital, does having a couple of contracts for my business services help me get a small line of credit or business loan.  My personal credit took a hit in the last year and has dropped inot the mid 500s.

But as I have stated I have two current contracts and am expecting a third within the next two weeks. Would a financial institution look favorbaly on them? CAn I use them as leverage to get a L.O.C. of $25,000.

L.O.C. is Line of Credit

A bank will basically set up a checking account or credit account with check writing ability. You only pay interest on the money you spend as opposed to getting a lump sum loan where you pay interest on the entire amount from the start.

Sidney,

Thanks for your insight,as well. I feel that I probably would not get much help from lending instituions right now (I know my personal credit would hurt, not help), but I won`t need 100k startup capital either. I haven`t finished putting the numbers to paper, but I feel that between 30-50k will be ideal. I certainly don`t want to hinder profits with a big note to pay on every month.

On a side note:

I was thinking about the business I am in now. I am a residential flooring contractor, and have been for about 17 years, operating as a schedule C. About 2 years ago, my wife set up a DBA and I registered it with DNB. We NEVER used the name, we never obtained any credit with it. Can I "upgrade" a schedule C to an LLC or c-corp, and would that qualify as a "shelf" corporation?

Thanks Again,

J

Sidney,

Thanks for your insight,as well. I feel that I probably would not get much help from lending instituions right now (I know my personal credit would hurt, not help), but I won`t need 100k startup capital either. I haven`t finished putting the numbers to paper, but I feel that between 30-50k will be ideal. I certainly don`t want to hinder profits with a big note to pay on every month.

On a side note:

I was thinking about the business I am in now. I am a residential flooring contractor, and have been for about 17 years, operating as a schedule C. About 2 years ago, my wife set up a DBA and I registered it with DNB. We NEVER used the name, we never obtained any credit with it. Can I "upgrade" a schedule C to an LLC or c-corp, and would that qualify as a "shelf" corporation?

Thanks Again,

J