finance through a business credit card

[kimesha]

tom kish keeps sending me emails about this idea. i went to his website and listened to a recording. he basicly says that some bamks will give you a business line of credit, no questions asked, if you have a good credit score. he forms an llc an opens up these lines to purchase and rehab homes. he also said that these lines of credit don't show up on your credit report because they are under a business name. anybody familiar with this creative financing? :SM135:

[loans2investors]

tom kish keeps sending me emails about this idea. i went to his website and listened to a recording. he basicly says that some bamks will give you a business line of credit, no questions asked, if you have a good credit score. he forms an llc an opens up these lines to purchase and rehab homes. he also said that these lines of credit don't show up on your credit report because they are under a business name. anybody familiar with this creative financing? :SM135:

Yes I know that Wachovia Bank and Bank of America are doing them check it out

[mike_mn]

I just noticed your post after I replied to a similar post on the general board. here was my response.

I have read and looked over his web site and stuff.

This is the basic premiss of what he is talking about.

If you have an LLC or any entity type and you have a Tax ID number(EIN) you can apply for business credit cards. Advanta, citi, amex, chase and might get 15-25k credit line if you personally have good credit. The other thing he says is that you dont even need credit if you get a partner with good credit to get the line open. This is the types of credit line he is generally talking about. The balance and activity dont show up on your crdeit report because you used the EIN to get the card. That doesnt mean they dont check your personal credit for worthiness of repayment. I am unsure if default on the card completly may show up on your report...?? You can use that credit line for down payments, flips, sub2s or any number of things that the money is not needed for a long period of time > a couple months or long term if the rate and repayment is bearable. You can do it over and over with multiple entities and after you have about 10-20 cards you can have access to a bunch of cash. This may allow you to purchase a cash deal on your own that you havent wholesaled yet.

On suggestion is to apply for multiple cards for different entities or different cards from the same company(ie advanta) on the same day. Then it will likely show up as 1 inquiry on your credit report. They inquire multiple times, but I have noticed the Credit Bearus may only charge one inquiry

I think he also talks about ways to get around the cash advance fees and cash advance rates. Just a guess but maybe havnig one of your companies accept cards for purchases...maybe not legit not sure about that.

Hope this helps

[brianb_cobbres]

Actually. most banks offer unsecured credit lines for businesses with most capping out at 100k. The terms are usually prime plus 2 with some type of annual fee although I did run into one that charges 2-3% per year on the base line amount.

I started looking into credit lines a few weeks ago when I realized hard money is not all its cracked to be.

Anyway, even though the line is through the company you need someone to guarantee the loan against their own credit. The line will not appear on their credit report but they are ultimately responsible for the money. That said the company credit does benefit from the loan as long as you keep it current.

You can expect to rather small amounts but you can get it from multiple banks and you can combine them with business credit cards.

[mike_mn]

Actually. most banks offer unsecured credit lines for businesses with most capping out at 100k. The terms are usually prime plus 2 with some type of annual fee although I did run into one that charges 2-3% per year on the base line amount.

I started looking into credit lines a few weeks ago when I realized hard money is not all its cracked to be.

Anyway, even though the line is through the company you need someone to guarantee the loan against their own credit. The line will not appear on their credit report but they are ultimately responsible for the money. That said the company credit does benefit from the loan as long as you keep it current.

You can expect to rather small amounts but you can get it from multiple banks and you can combine them with business credit cards.

Thanks Brian

I will have to check into some banks as well. I am guessing it might not work to well for me since my tax return doesnt show much for income, but if they take it based on credit maybe I have a shot.

Everyone who has a loan or business loan/LOC that is said to be impossible to get, called 1 more bank than the person that said it was impossible.

A note to others, even if you have worked with the same bank for 40 yrs, it doesnt mean they will do what you want with loans and such. Certain banks have certain guidlines. You just have to find the bank that fits the needs you have at that time for cash.

I know a guy that presented to 9 banks before getting someone to listen. I am sure others have dealt with more than that.

[brianb_cobbres]

This may be a good place for you to start.

http://www.american1funding.com

You can google "unsecured credit line" to get a bunch of brokers or just go to every bank site you can think of and check under business loans. Read carefully before you apply as most require 2 years for a corp, etc...

I have also applied to Wells Fargo, US Bank and a few others just to see what happens.

[Aldo]

I've not seen this thread until just now but would have replied more promptly under different circumstances.

My personal and business credit scores are in the 800+ range. I asked my banker for an unsecured LOC of $10K and was refused. My reply was "you're fired". I shopped banks using the $10K LOC as a requirement. US Bank agreed and, when the job was done, I had a $30K unsecured LOC.

The bottom line is that it's out there, you simply have to look for it.