These aren't exactly business lines of credit but I recently came a cross a source for Venture Capital (VC) that will lend $100M or more.  They want 30% of the equity.  That's much better than many other venture capital sources.  They can fund as quickly as three business days if you give them all the info they need up front.

As I stated, they only want 30% of the equity.  So they aren't going to make a grab for control of your business.   The fact is, they don't want to run your business.  If they aren't confident in your teams ability to adequately run your business, they wont invest in it.

So, what you need:

1. A good product or service
2. A good market for that product or service
3. A good business plan
4. A good exit strategy
5. A good team

If you have all five of these, they will consider your application.

 

As I mentioned in This Post, lending has tightened up in business lines of credit.

Here are some issues that have resulted in ZERO MONEY in the last 3 months:

-          Over 12 inquiries (4 per bureau) in the last year
-          Under a 675 FICO score
-          Over 70% debt ratio on revolving credit
-          High balances on Net-30 or $0 Limit accounts, such as Open AMEX cards.
-          HELOC or Mortages under 4 months old

If any clients have these stats – THEY ARE CERTAINLY A NO-GO

 

I just got word that the lenders that provide the larger lines of credit have frozen their accounts and will not be providing their lines of credit in the near future.

What this means is that you can still get up to $250,000 in business lines of credit (through individual $5,000 to $30,000 lines).

It looks like the residential lending crunch has finally started to hit business credit.

More later when I know the why's and wherefores.