Line Of Credit
Lending relationships in line-of-credit and nonline-of-credit loans: Evidence from collateral use in small business [An article from: Journal of Financial Intermediation] [H] [T] [M]
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Answers
I am in the process of starting my own business and I am requesting a line of revolving credit from a financial institution. How much collateral do I need (in %)? Is there a "best" way of offering collateral in this case? Or simply a savings account with x dollars on it?
Quite often, with startup business' such as yours, the bank really won't recognize the business and just give you a personal line instead, in the "Name" of the business.
Gary Rees explains that the liability of the CFO is very limited. The CFO, for the busines, FICO score is not touched or affected by the business ...
Yes. Some stockbrokers would also be willing to loan. This is called a "pledged" loan. The bond would be signed over to them. If you don't perform, they don't have to chase you down for a signature..
I am not employed and have trouble paying my equity line of credit ($25,000). My collateral is the apartment I live in and there is no debt on it. What happens with the debt if I file for bankruptcy?
It will be included.
I have about some raw land, free of debt, worth several $100,000's. My score is 750 or so.
I'd like to get a line of credit against my land property, very much like home line of credit. Is there such a thing? I think some hard money lenders will do it, but I'd rather not pay 9-15% interest rate... Is there a conventional bank that has a product that will help me?
I understand that it's tough to get a loan for raw land to purchase (I have done it), but I fail to understand why lenders would not borrow a fraction of equity in the land itself, especially if debt free.
You have already found the answer!
National Lenders will not lend on raw land and only some Hard Money Lenders will!
BUT, there may be a local Bank or Savings and Loan who will look at your total financial picture and make the loan. Start with the local Bank/S & L where you have your accounts.
Best wishes.
I am going back to college and want a line of credit, using my business as collateral, the problem is my credit is not good due to some bad business deals. Is there a lending institution that could help. I have two other people who have good credit and are willing to cosign. Also have paid for house I could use as collateral.
I would never co-sign for a person with bad credit. Credit is the ability to go into debt. Credit is a good thing. Using it is not.
If you elect to used credit, thereby going into debt, you need to pay that debt. How can you expect someone else to lend you money if you haven't made good on previous obligations?
Asset-Based Lending More than Last-Resort Business Financing ...
Property-based lending in general, requests from sales completed. Large claims are more than 90 days from billing and debt are generally not eligible. Eligible Inventory shall in general all finished products and raw materials tradedMaterials. Excluded from the list of eligible inventory are works-in-progress, slow or obsolete inventory and inventory of the shipment with customers.
Fixed assets such as machinery, equipment and property, deposited as collateral. For example, could serve as working capital requirementsTaking a basis for a revolving credit line that could be drawn out and reimbursed. This can help accelerate the cash flow of the company, making it against the expected future value of current work to borrow money in the near future. In return, the company could be the funds borrowed to finance the working capital for the operation and others to be fair.
...News
AIG E-Mail Trail Chronicles CrisisCBS News - Dec 31, 2009
The Goldman collateral call raised eyebrows at AIG headquarters. The mantra at Financial Products had always been that the credit-default swaps were safe; and more »Westlaw Business Currents - Dec 30, 2009
The amendment removes a provision permitting Orion to request an increase in the line of credit and modifies: limitation on borrowings, collateralSalt Lake Tribune - Dec 25, 2009
one case to extend an investment company a $13 million revolving line of credit in exchange for $2.5 million in collateral in treasury bills and bonds. and more »PR Web (press release) - Dec 30, 2009
dollars to Bank A on their first mortgage, and $100,00.00 dollars to Bank B on their second mortgage and/or equity line of credit also known as a HELOC. and more »
Mt. Vernon Register-News - Dec 30, 2009
We can't have a line of credit.” Board members discussed various methods for cutting costs in the county in the future, including waiving the salary forWorcester Telegram - Dec 30, 2009
'D' is the key to Pats' surgeWhether the Patriots make the Super Bowl remains to be seen, but they are in line to be represented at the Pro Bowl on Jan. 31. Brady was named to the AFC and more »PR Web (press release) - Dec 24, 2009
BigNews.biz (press release)Paydayloan.net Says Don't Use Payday Loans to Buy Christmas PresentsThese are only meant to be quick loans for emergency. As with any line of credit, make sure you understand the fees and payment schedule.Payday Loans UK, financial support for poor credit peopleall 31 news articles »