Small Business Line of Credit

searcher profile

October 02, 2023

by a searcher from Rice University - Jesse H. Jones Graduate School of Business in Houston, TX, USA

Hello,

Does anyone have suggestions on a small business line of credit for a business that has been in business 5 years but has been under my entity for 1.5? Needing $50k on a business that will end at $400k in revenue this year with 50% EBITDA margins.

Thanks!

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commentor profile
Reply by a lender
from University of Missouri in St. Louis, MO, USA
if you have no debt on the business. I would think the most logical place would be with whoever you work with on your deposit relationship. If you have debt, specifically 7A, you would need to use them most likely since they have a lien on all assets. For that amount though, your cheapest and easiest is a credit card. For time/cost purposes a $50k line is tough for most banks. if you use the credit card correctly, it is a net positive on working capital
commentor profile
Reply by an investor
from New York University in St. Louis Metropolitan Area, USA
I have a $150,000 American Express Business line of credit. First you apply for an AmEx business credit card then you get invited to apply for a business line of credit. You can message me for a referral link that will enable you to earn 120,000 AmEx Points when you are approved for a business credit card.

The interest rates depends on your credit. Mine is 6% which is the lowest they charge. A personal guarantee is required.
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