WE'VE MOVED!
We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
WHERE TO GET AN UNSECURED BUSINESS LOAN WITH ......
phil07
subscriber Posts: 2
Ok , my wife and I are running out of ideas. We have a 2yr business in transportation. We started this like most all do, with our personal credit. In the last month we have turned this business into an LLC, got our EIN#, and filed with D&B to get things on the right track for the business to build credit. As soon as we can we will start moving what we have already over to the new credit profile so our personal will be one, and the business will be another. The problem is most of the credit cards will not allow us to switch the open accounts over. I understand why. This is the main reason we want to get a business loan; 1) to pay off what we used for the business on those cards, 2) in time build the credit for the business, 3) last but not least, give us back our personal credit freedom! Every one that sees our credit notes how high our credit to debt % is, but yet we have no problem paying the bills on time. This problem has also stopped us from being able to expand the business. That may sound like we are only backing up, but we are looking to buy raw land so we can build. Not just a home, but a office, shop, stables, wash-pit, loading pens, barn, and a 4-h arena. This in time will be very valuable to the company, not to mention a great investment. As for our credit score (630-678). If any one can point us to the solution, or maybe has an idea.......feel free! WE ARE ALL EARS! Thanks, Have a wonderful day!
Sign In or Register to comment.
Comments
You`ve got a lot of stuff (in your post) and I don`t know if there is a single action to get you where you want to go.
Generally speaking, getting the company to borrow money to pay off your personal debt isn`t an easy task because it usually leaves the business burdened with a lot of "new" debt that doesn`t produce any additional revenue.
Sounds to me like you need a more comprehensive "capital strategy" for the business - which begins with the business plan decisions and assumptions. robertj2007-11-5 14:30:54
A fully amortized loan of $50,000 at 9% interest with a term of 7 years would require monthly payments of about $805.
How does that compare with your current situation?
If the company took on this obligation, would you adjust your "salary" accordingly?
Boy does your post bring back memories of some stressful times in my business past. Fortunately for me, it is just that the past.
I was begging, scratching, and scraping for funding to establish my home based business with no success.
I got a referral in SUN for www.thesnaploan.com and tried them. I was approved.
I have been through the process, and I think you have a good chance of getting approved.
Let me know if you have any success with them.
Good luck.
Most importantly, don`t give up.
Credit is not easy! The formulas involved vary so greatly that you can never seem to get a good handle on what to do or not to do but here`s what has worked for me.
Research credit and understand it as best you can. For example: You mentioned debt to income ratio. If you are paying those accounts on time then consider the following. If you have a credit card with a $5000 limit and you are using $4000 of it you have a high debt to income ratio. Credit reports do not show how much you earn. They look at how much credit you have to how much you are using. If you have been paying on time with your creditors then you may be able to increase your line of credit. If you request an increase in your credit line in can, not always, change your debt to income ratio. BE AWARE they may run your credit to determine if you qualify for an increase. This can have an negative effect on your score. Not much but every inquiry to your credit can have a negative effect. So decide carefully if you feel that you may be able to increase your line of credit enough to have a positive effect. Citicards for example may increase your line without a credit check if you have a perfect payment history. You can request this online and it might occur immediately without a credit check.
Next, you`ve been in business for at least two years, that`s good. Hopefully you`ve had an accountant filing your taxes for you those two years. Having an accountant that can "vouch" for you can go a long way in getting a loan. Even if they simply provide a letter stating you`ve been in business for two years.
Second, if the business EIN does not have any credit established yet there are things you can do to get things rolling. If you have business phones (cell phones) for the business, switch those over to a business account with your provider. It`s easy to do and it will establish credit for the business. You can also consider opening an account with local suppliers. For example Home Depot, under the business EIN. You may not require a Home Depot account for you business but it will establish a creditor for the business. Open an account with a local paint store like Sherwin Williams. Request the highest limit possible. This does not mean you have to use it! Again, the more credit you have "unused" the more credit worthy you can appear.
Look at this way, if you have credit cards all with zero balances then you have the "abilty" to spend up to the maximum of those cards. If you don`t have any balances it can show restraint and control, which banks can feel confident with. Here`s the other side of that coin. If you have all that spending abilty and do get a loan and decide to rack up a bunch of debt on credit cards then you have just that many more payments to make. The bank might also see you as a risk because you have the ablity to spend that money. Like I said credit it not easy.
So what`s the answer? Time. Establish a relationship with a local bank. I mean a local bank. Not a bank in 3 states with 1500 branches but someone you can get to know. Show them what you`ve been doing and your business plan.
One last note. Make sure that you getting the best rate on those credits cards you currently have. If you are making on time payments then call them up and request the lowest rate of intrest possible. If you`re paying too much this could be a quick way to save a few bucks. Push them! They will in most cases help you out. Keep paying everything on time and make sure you pay twice the minimum payments.
Good luck!!
sokogoose12/13/2007 12:38 AM
BigDog Investments
Realestate Private Money Hard Money Specialist
jbigdog12/19/2007 7:28 PM
If you're in business for yourself, then you know that there may come a time when there is a piece of equipment such as a new computer or some type of software that you need you can't realistically pay out of your own personal budget. Or, business may be doing so well that you may need to look into hiring staff and actually setting up a dedicated office space which require a lease and moving and all the other expenses associated with that. In each of these two instances you may be thinking about getting an unsecured business loan. However, and consider whether or not doing this is the right move? Similarly, how can you tell if an unsecured business loan is right for you?
Sometimes, as business owners, we like to think we are a step above the general workaday public. After all, we have ultimate control over each aspect of our day including want to work on. We also have complete control over how fast or how slow are income and how many clients we take on an even with Johnson. We also have total control or something of our cash flow. However, just because we are business owners does not mean that we automatically perfect. Consider for a moment that if you have troubles dealing with your personal finances, such as: spending money that you don't have credit cards been struggling to pay off the bill or perhaps not making up a budget and being able to stick to, then these traits will most often follow you into the business. And should you have the strings you need to be able to recognize them and deal with the before you consider getting an unsecured business loan. If you can't or won't look at your financial deficiencies then this type of loan can be any business loan may not be right for you.
What I'm saying is this an unsecured business loan is just like any other loan in that you need to pay it back or you're going to have collection agencies handy. And if in your personal life you can't seem to get a handle on paying your bills on time then you want to add to the stress by taking out a loan for your business and then having the responsibility to pay that off in a timely fashion. However, if you have a good handle on your personal finances and bills then getting an unsecured business loan should not be an issue.
unsecured small business loansmall business cash advance
Carlos Hank Rhon
My name Mrs, Renee Phillips, i am from USA CA , i am married, i have been searching for a genuine loan company for the past 2 years and all i got was bunch of scams who made me to trust them and at the end of the day, the took all my money and left me moneyless, all my hope was lost, i got confused and frustrated, i lost my job and find it very difficult to feed my family, i never wanted to do anything will loan companies on net anymore, so went to borrow some money from a friend, i told her all that happened and she said that she can help me, that she knows a loan company that can help me, that she just got a loan from them, he directed me on how to apply for the loan, i did as he told me, i applied, i never believed but i tried and to my surprise i got the loan in 24 hours, i could not believe my eyes, i am happy and rich today and i am thanking God that such loan companies like this still exist upon this fraud stars all over the places, please i advise everyone out there who are in need of loan to go for Mr. Robert .M. Clark Email via ; ( [email protected] ). he did not know am doing this for him,but i just have to do it because a lost of people are out there who are in need for a loan., they will never fails, your life shall change as mine did.
Thanks and Good Luck.