I get this question a lot. In short the answer is “normally” No. But (you gotta be careful about those “buts”) there are exceptions. In fact, I personally have no less than 10 “business lines of credit” that I have obtained WITHOUT any PG’s. Technically they are business lines of credit but I would refer to them more appropriately as “vendor lines of credit”.
Our company has built an excellent business credit profile and, because of this, we have had credit extended to our business from companies like Quill, Uline, Grainger, Staples, Office Depot, Shell, Exxon, BP, Dell, Home Depot, Lowes,?Wal Mart, Sams Club, etc. You get the idea. These vendor trade lines are great and they allow me to access many products that are helpful in building our business.
These lines of credit can be as little as $500 or as much as $15,000. Some of these are “net 30” accounts that must be paid in full within 30 days and others are “revolving” accounts where I can carry a balance and pay it off over time.
What are the pros and cons to this strategy? Tune in tomorrow for Part 2 on small business loans.