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Old 12-03-2002, 05:05 PM
KenH KenH is offline
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Join Date: Jun 2002
Location: CT
Posts: 1,622
Any one use a line of credit??

I just opened a line of credit at my local bank. I pay interest only on what I borrow, and dont have to pay on principal until the end of the term. Works just like a home equity line. Has anyone else done this??? Seems like a viable option for positive cash flow.
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Old 12-03-2002, 05:16 PM
Highpoint Highpoint is offline
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Join Date: Oct 2000
Location: Columbia, Mo
Posts: 153
the KEY to this is "payable at end of term" If you fail to pay on the principle you'll get stuck with a LUMP sum due. Be Careful. This can get you into trouble. Been there, done that, don't do no more.
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Old 12-03-2002, 05:50 PM
KenH KenH is offline
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Join Date: Jun 2002
Location: CT
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I understand that...Ill just pay towards principle as I go along. I am pretty good with my finances. Interest rates are at an all time low.....
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Old 12-03-2002, 10:21 PM
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Mowingman Mowingman is offline
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Join Date: Feb 2001
Location: Texas
Posts: 4,596
When I went fulltime 3 years ago, I got a line-of-credit set up with my bank. It has come in real handy to meet payroll early in the spring when cashflow is a little slow to get started. Also has been handy when I need some equip. on short notice and won't have cash on hand till later in the month. I have found this type of "loan" to be very economical in the long run.
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Old 12-03-2002, 11:48 PM
John Allin John Allin is offline
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Join Date: Sep 2000
Location: Erie, PA
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We have several.
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Old 12-04-2002, 12:32 PM
KLR KLR is offline
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Join Date: Aug 2002
Location: Zone 6
Posts: 171
yes, we also have a couple. makes good sence as long as you use them wisely (you know, no impulse spending, that sorta thing)
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Old 12-04-2002, 02:06 PM
dr grass dr grass is offline
Join Date: May 2002
Location: Flint, Mi.
Posts: 242
credit is EVERYTHING in todays economy. i have credit established with my name. since i just changed my business name recently, i dont have any under the business yet. i have been saving credit card apps. for a few months now. soon, i will go through them, and see whatkinda deals i can get. than, ill order a card or 2 under my companys name.

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Old 12-08-2002, 10:39 PM
Nebraska Nebraska is offline
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Join Date: Jan 2002
Location: Beautiful Great Plains.
Posts: 525
Absolutely a viable option for cash flow. Was included as part of our initial business plan....
Have only used it once, during the winter (January) when we had very little snow.... Was able to pay it back the following late spring (May)... It was not till after the annual renewal that we were able to pay it back that year and the bank just rolled the principle over into the new term.
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Old 12-09-2002, 12:08 AM
Barkleymut Barkleymut is offline
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Join Date: Jan 2000
Location: Richmond, Virginia
Posts: 1,117
Be aware that a line of credit usually has a variable interest rate. We were about to buy a new truck, trailer, and ZTR on a home equity line but will wait till we get a couple of signatures on contracts for next year. BTW it doesn't look like the Prime Rate will increase anytime soon but who knows whats to come in 5-10 years. I sure would hate to pay 10% or more.
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