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youngman1234
Posts: 455
Registered: ‎02-27-2012
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Re: HELP !!! PAID CHASE $30,000 AND THEY CLOSED MY ACCOUNTS

Yes, 

 

No problem I am sorry if I said anything wrong or disrespectable Im just really tensed right now... Ok and by the way our business has good profits honestly, We sell garments and the margins are pretty good. As an example on a $100 sale we make between 60-70 profit. My borther and I have made over 75k in profit since we have been open and have invested all that back into the business to keep buying inventory for our winter season... 

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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: HELP !!! PAID CHASE $30,000 AND THEY CLOSED MY ACCOUNTS

Sorry to say but you are high risk because your business is undercapitalized and new. Your spending pattern on these cards is an indicator. It would have been better to ask for a small business loan or apply for a small business grant.

You cant build a house of cards and expect it not to fold upon the slightest breeze.

An amex business platinum may have been a better choice.


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youngman1234
Posts: 455
Registered: ‎02-27-2012
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Re: HELP !!! PAID CHASE $30,000 AND THEY CLOSED MY ACCOUNTS

But I pay everything in full every month.... 

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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: HELP !!! PAID CHASE $30,000 AND THEY CLOSED MY ACCOUNTS

You should shop around for a local bank and ask around to find banks and credit unions that are small business friendly.

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kimmiller112
Posts: 467
Registered: ‎04-09-2012
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Re: HELP !!! PAID CHASE $30,000 AND THEY CLOSED MY ACCOUNTS

But it isn't the fact that you pay in full each month, it's the fact that you took each card to it's limit or beyond.  Credit card companies want to see responsible spending habits, not maxing out the three cards you have with them, even if you pay it in full.  Just because you have xxx amount on a credit card, it doesn't mean that they want you to have a balance of xxx - or + $1 at any time during a billing cycle.  Whether you end up being able to stay with Chase or having to go elsewhere, you need to get in the habit of charging 25 - 35 % of your credit limit and then paying that off before charging more, even if it means paying 2 or 3 times a month.

 

Just out of curiosity, what would have happened if you had a bad weekend this past weekend?  It does happen.  Then you might not be able to PIF or pay at all and that is why Chase closed your accounts - they don't want to take that chance, you have become very risky to them.  It is all a part of owning your own business.  I have a very seasonal business - I do short-term vacation rentals.  My busy season is Memorial Day weekend to mid-August.  However, if a hurricane (big or small) hits my area, there goes part or all of my busy season.  From day one, I was prepared.  I never go over 20% of any of my credit limits for any business credit I have.  I take small deposits and they stay in a trust/escrow account untouched until they are transferred into a different trust account that pays the owners.  I maintain a healthy balance on all three of my business bank accounts - if I have a really bad slow season, I can still pay my overhead, employee paychecks, etc.  

 

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youngman1234
Posts: 455
Registered: ‎02-27-2012
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Re: HELP !!! PAID CHASE $30,000 AND THEY CLOSED MY ACCOUNTS

I know but banks are not giving credit now n days, chase was the only business helping me out !!! I needed the help, it was working out great !!!! 

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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: HELP !!! PAID CHASE $30,000 AND THEY CLOSED MY ACCOUNTS

It really does not matter how often you pay in full. Undercapitalized means that you are relying on sales to pay the credit cards... a better choice may have been to pay cash using a debit card and limit yourself on maxing out new cards. Trust me; a little red flag goes up everytime you come close to your limit on a card and it causes the bank to scrutinize your whole picture. To them you appeared insolvent because the credit card bill exceeded your current account balance

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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: HELP !!! PAID CHASE $30,000 AND THEY CLOSED MY ACCOUNTS

There are local banks who specialize in small business banking and are eager to assist you. Banks are in the process of loosening purse strings.

Start making phone calls tomorrow to find one. Don't whine about how no one is giving credit without first pounding pavement and looking all over the place. Talk to your local better business bureau or chamber of commerce to get an idea as to which banks will be happy to work with you

Starting Score: 08/29/2011 TU 671 EQ 674
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youngman1234
Posts: 455
Registered: ‎02-27-2012
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Re: HELP !!! PAID CHASE $30,000 AND THEY CLOSED MY ACCOUNTS

When the busines analayst keep asking me how much would be good for the business I kept saying 25-35k... they kept giving me 12k and 15k I spend more than 30k a month. They told me to use it and if I need more they said just ask. This is crxy, they asked I told and they said wait and they would be happy to give it. Also the money  was sitting in the account for more than 3 weeks. I am always a month ahead, beacuse what I do it pay in full before the new statments cuts. So technically the statment could cut and I still have another 30 days, but what I do is PIF before it cuts so I am a month ahead of myself... Get it or hard to undertand. I know sometime u have good times and bad but I was prepared for bad but not this bad, My ink cash would have been due on Oct 4, and I paid today. My bold first statement never cut, and was supposed to be due on the 28th, but i paid today. My slate should have been due sept 27, but I paid on aug 31. 

 

I always pay all my credit cards before the statements cut that way I am a month ahead always..... 

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ryanbush
Posts: 1,299
Registered: ‎08-19-2012
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Re: HELP !!! PAID CHASE $30,000 AND THEY CLOSED MY ACCOUNTS

You might have to use your profits from your current inventory to pay your bills and purchase new inventory.  small businesses are built with time, you need to establish yourself and your clintel over time, you can't expect it to happen over night. 

 

once you establish yourself banks will be willing to work with you

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