Using Business Lines of Credit

[Jose Guevarra]

Hey Guys,

I read an article that suggested one way of getting financing when you are starting out is using  business lines of credit.  It suggested even newly formed business can get lines of credit(unsecured loans) based on personal credit (your's or a partner).  This lender claims:

10% "success" fee can be rolled into loan

0-24 month payback period

0% APR first 6-12 months

Sounds a little like Epic Fast funding.  Has anyone used a business line of credit to do deals?  Anyone experience any "gotchas" when using this type of financing?

I'm looking to do 100% financing:  75% from asset lender + 25% from private money.  A line of credit could take the place of the private money.

Thanks.