Business Lines of Credit

[David Moore]

I have found having my LLC have a US Bank Edge account to be an invaluable tool for financial flexibility. US Bank started my line at a generous number, and they keep sending me balance transfer checks, at 1.99 fee, with zero percent for 18 months. I love this line. But when I approach the same bank for a revolving business line of credit, the same bank says, max is 20% of prior year gross revenue.

I have two community lender banks, but one is now wanting to charge my business line of credit at 6.25%.  This BLOC is backed by a free and clear property I own.  I think that rate is high.  Any recommendations from other lenders?  What kind of interest do they charge?

And do you have any community based lenders will really good mortgage loan products.  What is the craziest and best you've gotten?  Always looking for another financing partner.  

[Tim Swierczek]

@David Moore & @John Woodrich

I actually think that 6.25% today is respectable.  Most lenders I know do not have competitive HELOCs for businesses.  The fact that these properties are free and clear is really the main reason you are even able to get these loans.  If this were a second lien position you would most often find the answer is no at any price (rate).    That being said I am aware of 2 lenders who do them and are probably a little cheaper.  The rates are expressed as an amount above prime which is currently 3.75% and expected to rise more this year.  This means your line David is at 2.5% over prime.  I think I can do better for you but will need to check from the office next week.  Please PM me and I will look into it for you.