Al ittle background
I started my business 4 years ago (I was very young, green to the business world and green to the world itself).
The business was audio and video based ( 12 volt, home theater, commercial etc...) I did ok with the business for a little over three years despite a few setbacks.
In November of 2012 it came to my attention a franchise came up for sale that had been doing badly under corporate control, so I pooled my resources and with a small loan from a family member (approx 10k) I purchased the franchise. I shut down my Audio store, I kept the business itself in name only (amended it with the Secretary of State Office and changed my DBA).
I have been slowly but steadily turning the franchise around, my comp sales for this year are showing a current improvement of around 30% enough to bring the business itself back into the black. But I would like to make some improvement to the business, redo the flooring, signage, as well as expedite my repayment of the family loan.
The problem I have is my limited credit history ( oldest account an auto loan) didn't apply for a credit card until last year ( Never thought I needed one, shows how smart I am ) The other major problem is that my business showed a loss the last two year. I have not yet applied for any type of small business loan, but I have researched them quite a bit, big banks, small banks, FCU's and those two factors seem to make me pretty much ineligible for any type of small business loan even secured (very little assets in the business itself).
The only thing I do qualify for is Hard Money, which in general seems like a bad idea.
Am I missing anything in my research, are there any companies offering stated income loans to business (I can provide bank statements but that's about it) ?Does anyone have any advise on the matter?
A term loan would be ideal, a line of credit would work. Plastic in this case seems like a very bad idea because I would be carrying a balance of some sort for tallest 24 months.
Please excuse any grammatical errors its 4 am and I am sure I have made a few.
What Credit Unions do you currently have relationships with if any or who do you have access to opening accounts with?
Who is the auto loan with?
Who do you currently have credit cards with?
All personal or any business?
Have you considered being certified with SBA?
They have a wide variety of loans and grant for small business
The Auto loan is through a small credit union Heritage Trust Federal Credit Union. This is also the only Credit union I have a relationship with, a very good one but they have not started a business loan program, only started business accounts June 1st of this year.
The company bank was one of the largest in the state First Federal, but it was acquired by another large local bank, South Carolina Bank and Trust (SCB&T) this year, so I plan to move before the "merger" is complete.
I have looked into SBA loans but they all require tax returns which I have, but show a loss.
My Credit Cards are slim to none.
Sears Cit Mastered- 1k limit (may 2012)
Capital One Platinum Mastered - 500$ (June 2013, on credit steps) got this card to further establish myself and work towards a venture card for travel.
I have only 1 blemish on my credit report a 1 year old tax lien for 818$ that was paid but I cannot get removed.
Until I joined this forum I had no idea what kind of impact carrying a balance on my credit card made so now I try to PIF all the time and it is slowly climbing.
Had a 681 before credit card or tax lien tax lien knocked it down to a 634 climbing my way back up slowly.