topic Re: financing a new business in Business Credit

financing a new business

Anonymous — Mon, 10 Dec 2007 00:23:32 GMT

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

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 00:47:14 GMT

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

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 01:00:49 GMT

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.

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 01:05:18 GMT

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.

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 01:15:36 GMT

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.

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 01:20:51 GMT

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

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 01:26:18 GMT

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

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 02:14:05 GMT

@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...

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 02:17:42 GMT

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.

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 02:34:42 GMT

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.

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 02:41:39 GMT

dede

I would recommend getting a sound business plan together first. Not having a business plan and going into business is like walking around with your eyes closed and it makes it much more easier for you. You will definitely need a certain amount of capital. Depending on the building you get, always expect the unexpected (especially if you will have to deal with a landlord).

You do need to work on your credit as well because the amount you have budgeted for you to start your business WILL be more than that--it never fails. IT IS COSTLY. Having your credit together makes it much easier for issues that will arise.

What type of collateral do you have? Liquid and hard assests. You can find someone to give you a loan but with not so good credit but they will want collateral. They will also want to know about the number of employees too.

Please take your time, do not rush trying to open. I know it is exciting to have your own business but it is definetly not something that should be rushed.

Message Edited by jaybee on 12-09-2007 06:41 PM

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 02:50:24 GMT

EddieX wrote:
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.

How long ago did you app First Equity. If you don't mind, what were your scores and do you know if you were approved or not? Did you get th pre-app or did you cold app online? I app'd last week and see no inquiries so far.

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 02:52:01 GMT

2 weeks ago...I think...

Through some link someone posted on this forum. They sent a letter asking for more info so I assume I might be in.

I saw the inquiry on my Experian. Just noticed it.

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 02:52:44 GMT

EddieX wrote:
2 weeks ago...I think...

Through some link someone posted on this forum. They sent a letter asking for more info so I assume I might be in.

I saw the inquiry on my Experian. Just noticed it.

Mine wasn't there yesterday but today it is. EX 675 FICO who knows what will happen

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 02:54:34 GMT

What type of info are they asking for...sorry I really want a major that reports to the Biz bureaus.... Cap1 does not

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 03:03:34 GMT

Think I was a 660 at the time they pulled it with 5 paid chargeoffs...one who changed the chargeoff date to October 2007 though it was paid years ago so I may not get it. Have to get that account cleansed.

Asked for driver's license, business license and a current utility bill. They don't even ask for a Tax ID or social if I remember correctly, so not sure where they got my info.

Hoping they at least give me a small limit instead of a straight rejection like everyone else. Bank of America reports...Advanta does but they seem to want perfect credit. Wish I could get these inquiries off my TU...

Message Edited by EddieX on 12-09-2007 07:03 PM

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 03:02:25 GMT

What type of biz do you have?

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 03:04:24 GMT

Housing rehab.

Looks like this thread has been hijacked...

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 03:08:35 GMT

EddieX wrote:
Housing rehab.

Looks like this thread has been hijacked...

Actualyl there are wo few biz threads that I would prefer they get long like the last one for biz credit. Mot people who are trying to establish biz credit are somewhat new and to have so much info in one thread I find helpful. Maybe if we get enough interest in biz credit, they will cut us off a pice of the board. Butsince FICO doesn't do biz credit we'll just sticik it in where we can.

By the way are you inc or sole prop?

Re: financing a new business

Anonymous — Mon, 10 Dec 2007 03:15:06 GMT

LLC.

Sole proprietor wasn't getting me anywhere. Plus LLCs have it easier getting lines of credit and all that with established credit.

Business credit isn't an exact science which is part of the problem.