Start-up loans

gman992gman992 Posts: 3subscriber
edited April 2008 in Startup Funding
I am looking for help for start-up with fair/bad credit...any suggestions?

Comments

  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    What kind of help do you want?
    Since you mention your credit situation, I infer that you want a loan.
    How much are you seeking?
     
  • startuphelperstartuphelper Posts: 2subscriber
    I think we can safely assume you are looking for start up funds. People with a bad credit score will certainly have a much more difficult time getting loans. You will need to forget about traditional commercial loans. The SBA won`t touch you if you have bad credit. You won`t even qualify for a micro loan. However, all is not lost.
     
    There are groups that offer loans of all sizes to individuals that are not able to secure a loan through traditional means. While they do give loans to folks with bad credit, you will need to jump through a few hoops. Like any other lenders, they prefer to help those that have proven their credit worthiness.
     
    The best thing you can do to fund your business is to come to the realization that you need to clean up your act. You need to fix that credit score, not only to eventually be able to secure a loan (even beyond the start up phase, you will want to have a line of credit available), but to be able to handle every other phase of business ownership. Keep in mind you will have a difficult time qualifying for credit card merchant status to be able to accept credit cards from your customers if your credit score isn`t good.
     
    So, if you are serious about starting your business, start earning more and saving towards your start up fund. If you have a full time job, get a part time job on top of your f/t job. Use that money to pay down your credit cards and to put into savings. In the meantime start doing your research and writing your business plan.
     
    You certainly don`t need to give up your dream, but you may need to scale it back and realize that it might take a bit longer than you had originally planned. Can you start smaller and build up to your dream business? Rethink your idea to bring it in line with what you can realistically afford. You can do this if you really want to!
     
    Check out my start up kit for more detail on those funding groups and more funding ideas.
     
     
  • gman992gman992 Posts: 3subscriber
    About 400,000--that should be enough to pay for salaries, equipment, and other services.
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    gman992,
    To acquire $400,000, you will have to do some work getting things prepared - both you and your business.
  • gman992gman992 Posts: 3subscriber
    Yep, have my business plan done, and I`m looking anywhere and everywhere for lenders...any advice where?
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    The business plan is a good start - especially if it shows how your business can service the loan. The payments ($400K @8% for 10 years) is $4853 per month!
    Assets (either business or personal) will reduce the lenders risk perception.
     
  • RBLAKELYRBLAKELY Posts: 0subscriber
    My husband and I just started a pressure washing company so we need financing also. We bought a truck and trailer and some of our large equipment. We have a complete business plan and a sound structure. Only thing is we have poor personal credit. What do we do at this point? I heard of Thesnaploan.com but their website is under construction. Any suggestions? Anyone?
    RBLAKELY4/10/2008 3:31 PM
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    My husband and I just started a pressure washing company so we need financing also. We bought a truck and trailer and some of our large equipment. We have a complete business plan and a sound structure. Only thing is we have poor personal credit. What do we do at this point? I heard of Thesnaploan.com but their website is under construction. Any suggestions? Anyone? ?
    The first 2 questions are:
    1. How much capital are you seeking?
    2. How poor is your credit
  • RBLAKELYRBLAKELY Posts: 0subscriber
    We`re seeking $30,000 in funding and personal credit is at around a mid 500.
    we are structured as an LLC and I am applying for a DUNS number to begin building my business credit. We just need to purchase the rest of our equipment and are stunted right now.
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    Have you considered leasing vs buying the equipment - to conserve capital?
  • RBLAKELYRBLAKELY Posts: 0subscriber
    Well, the type of things we need can`t be leased. Like, a shop vac and drain covers, etc. Our overhead is not really large. We`ve already purchased a truck and trailer and power washer to get started. The capitalo we`ll need is for marketing, printing, and additional supplies.
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    I understand. When you say you "purchased" a truck, trailer and power washer, did you-
    Pay cash for all these items or get a loan or lease any?
     
  • RBLAKELYRBLAKELY Posts: 0subscriber
    We paid cash for everything. One purchase at a time of course. We do as much as we can with our paychecks, but now we`re tapped.
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    We paid cash for everything. One purchase at a time of course. We do as much as we can with our paychecks, but now we`re tapped.
    It is possible to take cash out of the equipment with a "leaseback approach - although your credit scores may make that somewhat difficult.
     
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