financing a new business

[Anonymous]

Hello.

I'm hoping to start my first business (coffee bar), but my credit sux.  Can I realistically expect to get financing to make this happen?  Any suggestions?

Thanks,

dede206

[Anonymous]

How far in the future are you planning this?  you can establish your business on paper and then sdtart establishing credit but just like personal credit it takes time.  Have you looked into the SBA? What is going on with your scores that is fixable.  Both avenues need to be addressed before you really get off the ground.  Have you thought about taking on a partner?  You will either have to have well-established biz credit before you can even look at any significant financing and most of that will lrequire a credit check on the company officers even if no PG i required.

HTH

[Anonymous]

Brammy,

I've formed a corporation, got my EIN, requested a D & B number, and acquired 2 accounts in the biz name so far.  Right now, I'm reading everything I can find about starting a biz and about the coffeehouse biz...while working on my biz plan.  But I haven't gone to the SBA yet.

My personal credit...nothing that time won't fix.  Last time I pulled my score, it was only 581; but I'm working to get my credit card balances down.

I want to get the biz going as soon as I possibly can.  And I keep reading articles that say it is possible to finance a business with bad credit...but of course, the author doesn't say HOW.  Is that true?  If so, how?

Thanks.

[Anonymous]

Now I am a little new at this as well.  They may be referring to federal grants for women's bus...etc.  You are going to have to google that one. There are places that assist individuals in starting small businesses such as the urban league but again I am not familiar enough with these programs to speak to the requirements or what they actually do.

Good luck with your venture.  Not to scare you but out shopping today, my son and I noticed a new Back to the Grind going up.  Now it is just up the street from a very large company, and the location is the main thoroughfare for people to get back and forth to work.  I just keep wondering if they KNOW that there is a Starbucks located inside the company...lol!!  Choose your location carefully.

[Anonymous]

I wish I knew where to find the info. There is a grant to start a coffee shop...

There are also grants and loans for females to start businesses etc.

The loans you can probably get info from a small business office.

Microloans are available for $25,000 and under and are usually local lenders looking to help build the community.

I have the Matthew Lesko book somewhere here, I think it has the coffee shop grant but I can't seem to find the book right now. Some libraries carry it. The one time I actually need it I don't have it...

I'm finding it very difficult myself to build business credit, everyone wants a personal guarantee and then the ones I do give the guarantee don't even give me credit and just add another hit on my reports.

[Anonymous]

I feel your pain Eddie.  Since I'm not throwing up buildings just yet, I figured I would just give it time for the few cards I have received to report a solid payment history.  Maybe PGing the first wouldn't be such a bad idea if it gives you a valid trade line.

Message Edited by Brammy on 12-09-2007 08:20 PM

[Anonymous]

Thanks for the info, guys.  I'll keep looking for grants...maybe I'll get lucky.

[Anonymous]

---

@Anonymous wrote:

I feel your pain Eddie. Since I'm not throwing up buildings just yet, I figured I would just give it time for the few cards I have received to report a solid payment history. Maybe PGing the first wouldn't be such a bad idea if it gives you a valid trade line.

Message Edited by Brammy on 12-09-2007 08:20 PM

---

I guess it only works when you don't get rejected for all of them

I have a Staples card and a BOA business card with a high APR.
Opened some 30 days things like Quill and Nebs but that's about it.

Dell and some of the others who claim they take you with little or no business credit all rejected me, gas cards and everything.

Wells Fargo who I have a credit line, credit card and just paid off a car with...even they rejected me and that car was paid off in a year.

Seems very difficult if you don't have a 720+ score.

I have to find that grant book...

[Anonymous]

Which gas card did you go for?  I got the Shell gas card, the OD and Staples card, and the Crap One Visa miles for biz.  Right now I know hat Ex is reporting really wonked out.  Only reporting the balance and not the limit so it looks as if you line are maxed out on some accounts.  I thought it reported this way llike a worldpoints card but have since been informed that htis is not the case.

Could be that your pulls are looking as if your credit is maxed.  Have you looked at your reports?  I know that it is not unsual for bad info to report on biz giles.  One phone company in particular seems to wind up on ev1s reports as a derog at one point or another.

[Anonymous]

Shell, Texaco, Sunoco, Exxon...
Home Depot, Lowes, Sears, all turned down...

One did say I was turned down because business credit but it listed Transunion and Equifax as the reporting agencies so they probably checked my personal. Think that was First Omaha...it was a bank that didn't ask for my social, don't see them on my reports. Probably have to pull business reports from TU, Equifax and Experian...don't know what would be negative there though.

I applied for First Equity, they don't even ask for your social but they pulled my Experian somehow...just saw it on my report.

Can't believe I can't find a book the size of a dictionary...it's Free Money to Change Your Life by Matthew Lesko. He may look like a whack job but his book has government money and all that.

The money for the coffee house is $50,000.