Shoofin

I recently purchased an existing company. In doing so I didn't buy the liability of the company, only the name and its assets. I created a new corporation and am operating under both names (but no dba). Problem I'm having is that I'm trying to obtain a line of credit. I'm in the car business and need to line to be able to buy inventory. I tried getting it done through HSBC, initially they said it looked like it was going through for $50k (I applied for 100k), then the rep called me today and told me I might not be able to get it.
I went to Commerce Bank, where I do my commercial banking to inquire about the line of credit there. I figured they might be able to help me out because I do my banking there. No such luck. Both HSBC and Commerce reps are trying to cut corners to see if they can get it done for me, but at this point I had my hopes high for the last 2 weeks, I'm not going to rely on it anymore, rather look elsewhere. Credit isn't a problem, my score is close to 800. I don't have a mortgage, only a few leases and a finance, among other pieces of credit. Their response to reason was that I don't have anough assets/collateral to show for myself.
Anyone been in my shoes and was able to get it done in any other alternate ways? Any help is appreciated, I gotta get this done ASAP... Thanks!

Ed

iTimmy

Dealing with the SBA is a pain in the ass, try a private banker/investor it will be your best bet. There is no easy way of getting approval from the SBA, but the easiest way is to have a business planner and a capable lawyer.

ShopTalker

Hard money loan....

NSXNEXT

iTrader: (2)

Unfortunately, I think not owning a home is a detriment. I thought you owned your place?

iTimmy

With out a good business plan its going to be near impossible to get approval for a business loan with no equity.

Shoofin

I'm renting from my parents. The house prices in my area are re-frikkin-diculous. I don't expect to spend anything less than $800,000 for a 20x100 shitbox.

Shoofin

I did some online research and noticed that some people say that it's easier to get a LOC from smaller institutions like community banks and credit unions. I've been doing my personal banking with a community bank all my life, so I went to them. They can set me up with an LOC w/o needing to provide collateral, but I need 2 yrs of business to show, but I only have 6 mos. She said she got someone approved for an LOC who was in business for 1 yr only, so they might do it providing i supply a statement of what's going on. The interest rates are in line with everywhere else (prime plus 2% approx). I sent over the application earlier today. The Manager of the branch called and asked me some questions about the original business. She wants to tie the name to it to show that I purchased an established business and verify it's performance for the 25 years it's been around. I gave them the name and tax id for them to check up on the original business to connect to where I am at now in the new business. Hopefully that will help things.

NSXNEXT

iTrader: (2)

Time to move over the bridge where the same sized shitbox goes for $600,000.

F900

Try MBNA.com

iTimmy

If you don't have any luck, let me know, I know someone who may be able to help.