First I'd like to give a brief description about the company. It's an LLC with 1 owner (soon to be divided up with 3 others). We have been in business 7 months and have not taken out any loans thus far. We are currently making profit every month (though it's is small). Unfortunately we cannot expand to the size we would like to be quick enough. This is where the loan comes in.

We talked with the bank and they informed us that $10,000 is the smallest business loan we can take. They also gave us the option to get a credit card where we can have $5,000.

We are not 100% sure which to do. We think we could use the $10k, but don't want to take a bigger bite then we can chew. What do you all think?

Thanks in advance!

Line of credit is good in many circumstances, but I find them a bit annoying because many (most) banks require you to qualify (re-apply) for them on a yearly basis. A credit card is a better idea for such a small amount. Get a card that gives you air miles or something like that. Another idea is, take the $10K loan, then pay $5K back on the loan right away, leaving yourself with only $5K to repay on whatever schedule you work out with them.

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Peter T Davis
Frixer, Inc.
Helping people make profitible businesses on the web.

Peter has a good idea with the immediate repay. But I get credit card offers everyday with 0% offers. With a small amount like $5,000 I think the CC is the best idea.

good luck
Richard

Another benefit of doing the loan thing is to help build your company's credit rating, if that's important to you at all.

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Peter T Davis
Frixer, Inc.
Helping people make profitible businesses on the web.