Corporate Bank Loan

To qualify for a corporate bank loan, your corporation needs to have a history of success and years of profits. In banking circles this is frequently called a "blanket-lien loan," and typically you can borrow no more than a three-to-one debt-to-equity ratio. So, if you want a $350,000 loan, you need about a million-dollars in high-quality equity (assets less liabilities) in your corporation. This is not the only criteria, however, the bank will want to know a lot about your management and your customers. As the Federal Reserve guarantees the money that banks lend, the Fed is strict with banks about whom they lend to. If you qualify, Porter Capital can steer you to a reliable bank.

Advantages: Low cost, little scrutiny after initial funding for a year.

Disadvantages: Long, long due-diligence process, then hard to increase the line. Know what you need going in.

Current Availability: Unlike past years, this year banks are making fewer loans, and their criteria are more strict.

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This Guide includes information on business financing options and how to decide which is best for your business.