In a previous post, talking about the Types of Business Lines of Credit, I said that there are three ways to get a high PAYDEX score: “You can do it on your own, you can hire a company to teach you how to do it, or you can buy a corporation that already has a credit line.” I want to discuss the Pros and Cons of each method of acquiring Business Lines of Credit.
Getting Business Lines of Credit on your own
This is the least expensive method of acquiring Business Lines of Credit and it gives you the lowest chance of getting scammed. However, unless you already know how to get and build your PAYDEX score and where to find good Business Lines of Credit, this method has a long learning curve. You have to wonder how many opportunities you will miss while you are focused on learning how to build your PAYDEX score and acquire the Business Lines of Credit. That will be time that you could have put into growing your business.
Hire a Consulting Company to help you get Business Lines of Credit
Hiring a company to help you can shorten the time significantly. For one thing, they can coach you on how to go about it. You won’t wast time going down blind alleys while trying to build your PAYDEX and they will point you to the best Business Lines of Credit for your needs. This will have some cost involved. However, the cost is small compared to the cost of spending an extra year sorting things out. The biggest downside, in my mind, is finding a consultant who will keep their commitments for training you. There are some very good companies out there and there are some who will spend whatever time it takes to get your money and then leave you on your own.
Buying a company with a Business Line of Credit already in Place
The fastest way to acquire a Business Line of Credit is to buy a company that already has one. There are firms out there that start companies, build up their PAYDEX score and get a Business Line of Credit. Then look for someone to buy the company with the Line of Credit. This is the absolutely fastest way to get a Business Line of Credit (on the order of 30 days). It is, however, the most expensive. This method is best if you need the funds to take some action that will bring in revenue like: purchasing product for sale, having product manufactured for sale, rehabbing a home for sale, getting compliant so you can raise investor capitol. If you aren’t going to spend the funds on something that will raise revenue soon, get any other kind of funding.
Who am I?
I am Jeff Miller. I have 15 years experience in the lending business, three years working with Business Lines of Credit and other Business Credit services. I am in Laguna Niguel, California (south Orange County, about halfway between Los Angeles and San Diego). You can reach me at (949) 249-3673.
I have access to several different types of Business Lines of Credit and other types of Business Credit. I am available to discuss the options available to you by phone. If you are in or near Laguna Niguel, we can meet face to face if that would help you.
Business Lines of Credit in Laguna Niguel