As a small business, is it easier to get a loan or line operating as a sole prop, corp or LLC?
Jan.06, 2009 in
Uncategorized
as asked:
I have a boutique that’s been open for two years now. We are currently listed as sole prop under my dad’s name because of his good credit history and 20 yrs of experience with his own business. I am 25 now and we would like to switch it to my name now but was wondering if I should incorporate? I run the business myself, with the help of my mom and sister. I am at a point where I want to expand and will need a line of credit or loan for my business to refinance existing debt and expand the business so I am wondering what banks like more..corporations or sole prop? I was thinking it may be best to operate as a s-corp or LLC. I know that women owned businesses also have lots of advantages. My main concern is to get some form of financing and would love any suggestions. Thank you
Accounts Receivable Factoring Quote, Invoice Factoring, Accounts Receivable Factoring, Factoring Loan For Commercial Finance Loans – AR Factor Quote * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.
I have a boutique that’s been open for two years now. We are currently listed as sole prop under my dad’s name because of his good credit history and 20 yrs of experience with his own business. I am 25 now and we would like to switch it to my name now but was wondering if I should incorporate? I run the business myself, with the help of my mom and sister. I am at a point where I want to expand and will need a line of credit or loan for my business to refinance existing debt and expand the business so I am wondering what banks like more..corporations or sole prop? I was thinking it may be best to operate as a s-corp or LLC. I know that women owned businesses also have lots of advantages. My main concern is to get some form of financing and would love any suggestions. Thank you
Accounts Receivable Factoring Quote, Invoice Factoring, Accounts Receivable Factoring, Factoring Loan For Commercial Finance Loans – AR Factor Quote * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.
invoice factoring
January 8th, 2009 at 2:38 am
Accounts Receivable Factoring Quote, Invoice Factoring, Accounts Receivable Factoring, Factoring Loan For Commercial Finance Loans – AR Factor Quote * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.
I have a LLC and I am able to get loans when I want to. If you are trying to get a business loan, You need to have the loan or line of credit in your companies name. To do this you have to apply for a DNB number:
This is basically a social security number for your company. You will build credit in your company name. This will save you from potential credit problems.
When you go to the bank to apply for the loan, you will need to have a business plan ready. If it is well written, the bank will be more inclined to give you the loan. Include how long you have been in business, goals and the amount of repeat customers.
January 8th, 2009 at 3:36 am
Accounts Receivable Factoring Quote, Invoice Factoring, Accounts Receivable Factoring, Factoring Loan For Commercial Finance Loans – AR Factor Quote * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.
You will find that your banker doesn’t care which form of business you are operating.
You are going to have to personally guarantee any loans because, as far as the bank is concerned, you are a new business venture.
Depending on your personal credit history and the amount you with to borrow you may also need a co-signer (perhaps your father).
You will probably need a business plan complete with sales and profit projections for five years. I suggest that you include a chart showing your sales and profit projections for both your present business and your expanded business for five years.
Pretend you are a banker and a stranger walks in with your business and business plan. Take a cold blooded look at your plans from two perspectives. First, does it make sense for you at this time. If not it is better to find out before you commit yourself. Second, does it make sense from the viewpoint of that cold blooded, hard hearted banker who has no emotional involvement with you or your business. (Your banker will be concerned with things like your credit history, your ability to repay the loan and how likely you are to become a long term profitable source of business for the bank.
If it still looks like the right thing to do — go for it!
Hope this helps
Jerry-the-bookkeeper
January 8th, 2009 at 11:12 am
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