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socrateaser
socrateaser, Attorney
Category: Finance
Satisfied Customers: 37952
Experience:  Retired (Mostly)
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I have been working on my credit and I am opening a LLC /

Customer Question

I have been working on my credit and I am opening a LLC / coporation and will file taxes for 2014. I did quite well (maybe made 150 k).
My score is about 700.
I wonder how I can get a loan. How much they might approve me for if it is for business or personal
Submitted: 1 year ago.
Category: Finance
Expert:  socrateaser replied 1 year ago.

Hello,

In order to get a business loan without a personal guarantee, your business needs at least two years of tax returns, showing a substantial net profit. Otherwise, regardless of the business, the lender will rely entirely on your personal credit. A credit score of 700 is average. Unless you can secure your loan with receivables, or tangible collateral (e.g., house, vehicle, precious metal, etc.), you're probably looking at a maximum of $20,000.

If you have collateral, then you can borrow the value of the collateral, unless it would exceed 36% of your net disposable income (after deducting taxes and other recurring monthly debts).

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.

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