I'd like to get a 30-50k loan for a business, I have real estate but would prefer not to sell it if I didn't have to. I've checked into the BDC and governemt ones, just checking any other options. What about collateral loans, or are these guys too shady?
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Business loan options?
- Thread starter wazup
- Start date
huckfinn
My book has been banned from schools.
Depending on how much equity you have in your real estate, you should be able to get 30-50K no problem as a second mortgage.
Or even an equity loan.....this is probably your cheapest option, and the easiest to get.
You should be able to borrow up to 75% (combined LOC and mortgage) of the current value of your property.
Or even an equity loan.....this is probably your cheapest option, and the easiest to get.
You should be able to borrow up to 75% (combined LOC and mortgage) of the current value of your property.
Yes, they are at that now, I have about 65k that is above the 75% value if I were to sell it. I have 150k on a secured LOC and could probably sell for 220k, not in Tronna obviously. As far as I know the banks won't go above 70% value.
I have a 50k unsecured loc that I could use but if they see me chewing through it they might put an end to it as it's not an approved business loan by definition.
I just filled out a form for a loan shark, he called me two minutes later. lol
huckfinn
My book has been banned from schools.
I have a 50k unsecured loc that I could use but if they see me chewing through it they might put an end to it as it's not an approved business loan by definition.
Hmm, could you 'lend' the money to yourself? I think the bank could only figure it out if you open a business account with them.
I would be really surprised if they even checked! They just want you to pay interest etc.
Hmm, could you 'lend' the money to yourself? I think the bank could only figure it out if you open a business account with them.
I would be really surprised if they even checked! They just want you to pay interest etc.
Good point, I thought they monitored activity, maybe only fraud. I'm not too worried about using it as I have the money in a rental unit, can sell if it goes to shit, but would like to keep it.
I know people have loads of unsecured debt, I've never had any. I would need to pay wages though.
Pretty sure mortgage debt is the cheapest thing out there to borrow from. Then probably line of credit. Then business/car loans..... worst are credit card of course.
As for LoC monitoring, I don't think they care what it's used for as long as you can it off as prescribed by the terms of the LoC. LoC payback terms are not the same as credit cards. Credit cards you may only need to pay off $20 for a $2,000 monthly bill. As long as you pay off that $20, they are happy.
With LoC, the terms can be totally different. I have over $50k of LoC too and only used it once a long time ago. The payback terms was that I pay back a minimum of 3% of the balance per month. I never bothered trying to revise it or anything since my LoC taken out was small. But if you take out $50k and have a similar pay back schedule, you may need to pay back $1,000+ per month.
As for LoC monitoring, I don't think they care what it's used for as long as you can it off as prescribed by the terms of the LoC. LoC payback terms are not the same as credit cards. Credit cards you may only need to pay off $20 for a $2,000 monthly bill. As long as you pay off that $20, they are happy.
With LoC, the terms can be totally different. I have over $50k of LoC too and only used it once a long time ago. The payback terms was that I pay back a minimum of 3% of the balance per month. I never bothered trying to revise it or anything since my LoC taken out was small. But if you take out $50k and have a similar pay back schedule, you may need to pay back $1,000+ per month.
