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Capital One Targets Startups
March 9, 2008
Original New Orleans CityBusiness article→
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“Most banks require a minimum of 18 months in business to extend credit to a startup,” Galloway said. “I don’t know of any other bank that’s targeted startups. Most banks run from them.”
New Orleans CityBusiness
Capital One Targets Startups
by Greg LaRose
Posted: Monday, March 3, 2008
Capital One is offering a package of banking services for startup businesses.
The “New Business Tool Kit” features a business credit card with no annual percentage for the first year, free business and personal checking, and a business-planning workbook.
Bill Galloway, Capital One small business banking manager in New Orleans, said the credit card is available to new businesses provided the owner’s credit rating is solid. Businesses can apply for a maximum credit limit of $50,000.
“Most banks require a minimum of 18 months in business to extend credit to a startup,” Galloway said. “I don’t know of any other bank that’s targeted startups. Most banks run from them.”
After the first year, interest rates will be based on the business owner’s credit score.
Galloway said 57 percent of the business checking accounts opened at Capital One branches were for operations open 18 months or less. Since unveiling the package in January, more than 700 accounts have opened at Capital One’s Louisiana and Texas branches, Galloway said. The same package will be offered in New York-area North Fork branches.
Galloway said business-banking customers tend to be loyal, making it important to secure their accounts early.
“It’s extremely difficult to (lure) a business account from another bank,” he said. “The other bank really has to mess up.”
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