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Business Line of Credit With Collateral.

I am interested in a business line of credit. I have collateral in the form of real estate to secure the LOC. Any suggestions as to where to begin looking for a lending partner?

2 Responses

  • Jan 13, 2010

    Julie Rains

    You are likely looking for other types of ideas but the first one that comes to mind for a lending partner is the bank that you currently do business with. You could also get recommendations (either for banking services in general or specifically the LOC) from your attorney, clients, vendors, or those who you work with in the construction industry.

  • Kim Luu

    http://www.linkedin.com/in/moneyandrisk
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    Editor, Moneyandrisk.com

    (Jun 04, 2010)
    There are at least 3 ways that you can get a business line of credit with real estate collateral.

    1) Business line of credit - with real estate as secondary collateral and UCC as primary. typically with residence
    2) Business Equity Line of Credit - typically used with an owner occupied commercial property.
    3) SBA 7A line of credit (amount is limited) - personal residence to be held as collateral.

    There are also hard asset lenders as well but those would be the last resort.

    I would suggest checking with your bank first. However, if your sales and profits are down or if you have a loss, then you need to move on to #3 (maybe) then hard money lender or look at a different option.

    Your options are based on the type of real estate that you have for collateral and several other factors.

What do you think?

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