re: Getting a line of credit at a bank @ 6.7%

quote:

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He mentioned 25-30 years as long as I keep meeting my monthly interest obligation. Interest rate won't move as far as I understand it also.

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This doesn't sound right. Plus a line of credit for a start up business to purchase equipment typically doesn't exist. You better make damn sure he's not expecting to take a 2nd mortgage on your house. This is what it sounds like to me.

A typical equipment loan is going to be a closed ended term loan for typically 4-5 years, financing 75/80% of the cost and termed out. Every time you buy a new piece of equipment it's a new term loan.

A line of credit to purchase equipment would never make it past underwriting as you'd never pay the loan back making interest only payments. Your equipment would be outdated and/or broken, you'd still have a line balance, and then you would need to borrow more money to buy more equipment while you haven't paid for the first equipment purchase yet.

Only the big boys have equipment "guidance lines" at banks. Unless it is just one shitty bank you are talking to.

I'd proceed with caution