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Home  Articles BUSINESS CREDIT LINES
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BUSINESS CREDIT LINES |
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I have received several calls lately on how to get credit lines for a business. Since we are small business and investment property owners compared to the larger companies, this has not been readily available to us in the past. However, I started checking around again and there are now a few lenders who will work with us.
For example, Wachovia Bank has a Business Credit Line we can use. It is similar to the personal line they have offered for some time. The collateral can be your personal residence or a rental property. Be aware that you will sign the loan personally as well as your entity—that is just standard without a long track record and significant assets in the entity.
The line can be up to 90% of the property’s fair market value. If you have held it less than a year, that is 90% of the purchase price. After a year, they go on your estimate of the value, but do a computer verification. For equity lines up to $250,000, and a credit score of 700 or above, there is very little paperwork. The rate is prime minus 1/2% if your personal residence or second home is used as collateral. Prime if a rental property is used. If you are willing to have these rates increase by 1/4%, Wachovia will even pay the closing costs! Term is 20 years interest only, then 20 years to pay back the principal.
Contact Vonnie O’Neal directly at 770-420-0159 or email her at
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I have dealt with her for years and have found her easy to work with and one of the few bankers that will look out for your interest. These programs change, so confirm the latest terms.
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