I’ve been banking with Bank of the West since I started the business back in 2008. They’ve been a solid bank to deal with. I called up Mandana, the manager of the San Mateo branch recently to ask her about a line of credit for my business. I’m thinking of making some additional investments in to the business in 2016 and feel this would be a good time to set up access to funds. This is a great time to request a line because banks are eager to loan money to established borrowers with good credit.
Mandana told me it helps that I’ve been with them for a long time and own a home. My rate would be 4.5%. How’s that? Of course, should the Fed raise interest rates the rate on the line will increase accordingly within 60 days. If you tap in to the line you’ll only need to make interest payments, but Mandana said the bank would be looking to see me making principal payments at least in part within 6 months of tapping the line. I bet that shows good faith and solvency. If you’re solid you can set up a line in just 3 or 4 days with very little paperwork.