Question
My company does about $3 million in revenue a year. I would like to get a loan for marketing expenses ($500k-$1m for 3-6 months). From what I've seen, it seems most credit lines are only up to $100k, but I'm entering an area here that I'm unfamiliar with. and could really use some advice. I'll be wanting to talk with someone who understands this :) Thanks!
Answer
Don't give up equity or do venture debt... Seriously?!? You're an existing and I assume you're profitable? There's a lot of "what ifs" on this, but typically you can simply go to a bank and get a line of credit up to $500,000 with just a credit score. But why would you use short term (line of credit) for long term solutions (loan)? Lines of credits are best for working capital needs. If you're looking to increase sales from a marketing campaign, dig deep and find what you'll be spending money on -- and you might realize you can do it much cheaper. However, if you're looking for the quick hit marketing turn into sales -- perhaps venture debt is best. Either way, have a good plan in place and take it to a banker (not the personal banker at your local chase). SBA is a good alternative.
I'd be happy to help you figure it out - drop me an email.
