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Business acquisition goal

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Quis
New Member

Business acquisition goal

I'm learning to acquire a business and get business funding. But I have in my credit report a chargeoff (December) because I helped my mom get the car, but she was hit with predatory tactics to pay it back (eating up her monthly income with a payment plan too high per month on top of her current monthly payment with bridgecrest. I tried helping when I noticed this but lost my job at the time due to medical conditions making me pass out at work too often). Then the insurance (progressive) gave a collection on the last month of December (janurary Collection). But I was on the path to greatness with a clean 640 with only 3 missed payments. 

But now I have 9 missed from the auto loan and a couple of 60s because of their multiple payments per month tactics... 

 

avoided a repo by getting an agreement to pay it down but my mom didn't know or ask me about the pay for delete. Don't know if it's too late or such a company will ever. 

im curious: will I still be able to get funding because I myself retained responsibility? Or am I punished for having a joint account? (the insurance wants to be petty and say it isn't a joint but personal). 

My goal is to buy a business a d also acquire business funding and use business credit to help downpayment. And I know how to do it all with my studies. But credit is holding me back. And no I have no relative or friend to help out lol (tired of hearing that. Feels so fake and disconnect with reality with ppl say that. *sadface*)

Goal is to achieve this by summer. Before all this occurred my credit was a few bits away to 700. But now it's a few points to 600. 

 

 

 

 

 

10 REPLIES 10
JoeRockhead
Senior Contributor

Re: Business acquisition goal

You didn't say how much money you're trying to come up with for the business. However, the majority of main stream lenders are going to require a PG (personal guarantee) for any kind of business CC or loan funding such as business loans or lines of credit, meaning they'll be pulling your personal credit reports (or looking for significant assets, depending on the lender). The worse your reports and scores are, the higher your chances are of denials, or very low limit approvals will be.

 

Aside from looking into the possibility of an SBA loan, there are lower tier lenders out there that may, or may not be willing to lend to you, or approve you, depending on the type of business and length of time the business has been established (also a requirement for SBA loans), but, they are very often predatory in nature, with not so friendly terms and outrageous interest rates. I'd strongly recommend you stay away from all these types of lenders. 

 

The best thing for you to do at this point in time would be to address the negative items on your personal credit reports in order to increase your odds of better approvals with main stream lenders. 

 

 

Message 2 of 11
Quis
New Member

Re: Business acquisition goal

I was hoping this wasn't going to happen. Please no generic answers I can find on YouTube or article. Smiley Sad(

 

Can I get a more in-depth advice/tips? Most of what you said I already knew. Sorry if it. Owns off as mean. I'm in a not a good state right now. I need solutions. 

the goal is to buy a business. Subprime lenders aren't ideal. Is there avenues that actually worked that either bypasses or resolves while with a chargeoff? Or something unique that I haven't heard before?

 

7 years is too long if the goal is by summer Smiley Sad. this issue I didn't have control over ruined all of my plans I had for the year.  The goal is well over hundreds of thousands towards a million in funding. SBA I was told takes too long to approve but it maybe the route I need but don't know if getting either with 1 collection and chargeoff will work. I don't even know if paying it will be any better for a re-evaluation to see my situation. 

Message 3 of 11
pizzadude
Credit Mentor

Re: Business acquisition goal


@Quis wrote:

I'm learning to acquire a business and get business funding. But I have in my credit report a chargeoff (December) because I helped my mom get the car, but she was hit with predatory tactics to pay it back (eating up her monthly income with a payment plan too high per month on top of her current monthly payment with bridgecrest. I tried helping when I noticed this but lost my job at the time due to medical conditions making me pass out at work too often). Then the insurance (progressive) gave a collection on the last month of December (janurary Collection). But I was on the path to greatness with a clean 640 with only 3 missed payments. 

But now I have 9 missed from the auto loan and a couple of 60s because of their multiple payments per month tactics... 

 

avoided a repo by getting an agreement to pay it down but my mom didn't know or ask me about the pay for delete. Don't know if it's too late or such a company will ever. 

im curious: will I still be able to get funding because I myself retained responsibility? Or am I punished for having a joint account? (the insurance wants to be petty and say it isn't a joint but personal). 

My goal is to buy a business a d also acquire business funding and use business credit to help downpayment. And I know how to do it all with my studies. But credit is holding me back. And no I have no relative or friend to help out lol (tired of hearing that. Feels so fake and disconnect with reality with ppl say that. *sadface*)

Goal is to achieve this by summer. Before all this occurred my credit was a few bits away to 700. But now it's a few points to 600. 

 

 


Sorry that you feel like you're being victimized but when you signed onto the loan & insurance it made you individually liable to pay for it

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 4 of 11
Quis
New Member

Re: Business acquisition goal

Please no generic answers. I need solutions. Sorry to reply this but I can't learn from posts that tell me things I already can find on YouTube. 

I understand subprime, partners, and all those things. I'm in need of some advice on what to do besides wait 7 years or find someone to delete. Like for example: what can I do to still get an SBA? Do I pay them down and increase chances to ask for reevaluation if not approved? Explain my situation. Did it work for the ones in my situation? Any avenues I've yet to eee that worked for someone in my situation?

it would help big time if I have something suited to the thread's topic please. I'm in huge need of some specific tips. Can't find anything on Reddit or YouTube, especially if I need to ask something very specific with someone who already has experience with business credit or had a similar situation as I to qualify what helped them. Something uniquely specific that could turn things around to do acquisitions. 

please no more generics. Please lol. My OCD can't take it. Lol

Message 5 of 11
pizzadude
Credit Mentor

Re: Business acquisition goal

Sorry but If you're requesting help in a public forum you can't pick and choose what types of answers you'll get.   As pointed out above, business credit will require a PG and you'll need to clean up your reports in order to qualify for loans such as SBA funding. 

 

What are the negative items on your reports and what are your FICO scores currently ?

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 6 of 11
Slabenstein
Valued Contributor

Re: Business acquisition goal


@Quis wrote:

Please no generic answers. I need solutions. Sorry to reply this but I can't learn from posts that tell me things I already can find on YouTube. 

I understand subprime, partners, and all those things. I'm in need of some advice on what to do besides wait 7 years or find someone to delete. Like for example: what can I do to still get an SBA? Do I pay them down and increase chances to ask for reevaluation if not approved? Explain my situation. Did it work for the ones in my situation? Any avenues I've yet to eee that worked for someone in my situation?

it would help big time if I have something suited to the thread's topic please. I'm in huge need of some specific tips. Can't find anything on Reddit or YouTube, especially if I need to ask something very specific with someone who already has experience with business credit or had a similar situation as I to qualify what helped them. Something uniquely specific that could turn things around to do acquisitions. 

please no more generics. Please lol. My OCD can't take it. Lol


If you want strangers on the internet to come up with a magic bullet solution to poor credit, you're going to be disappointed.


Message 7 of 11
Quis
New Member

Re: Business acquisition goal

@pizzadude @my apologies. I had to state my condition so that things can move forward. My FICO are all better. 580-591. My SBSSS isn't reported yet. But it only has 1 NAV account. 


EDIT: My negative items:

1 missed payments with indigo  in 2022. 2 missed payments with capital in 2022 and one Jan 2024. Missed payments with bridgecrest auto loan 10/9/8/6/5/4 months of 2023. And charge off in 11/2023. Hurts to even type that lol. 

I'm assuming, if anyone with the experience, that an SBA  could overlook if I request a reevaluation within the year of the chargeoff and collection? I have included medical issues and being a joint account. Was wondering if anyone can relate in some sense and found success. Or found another solution?

 

 

@Slabenstein  can we please stick to the topic? I'm looking for related experience. I know I've seen professional replies before joining. So I hoped it would be that here lol. I'm used to niche forums. Most are quite helpful. But when generic answers come it affects my OCD, so I address it. If you have issues with mental conditions, I supposed that's something I can't argue you with. I did state it early on. I was hoping by addressing what's generic, we could optimize the conversation to avoid misconceptions. So I apologize over the ordeal. But I learned decades ago optimizing the topic seems to work getting things done in forums. Both professional and normie. But let's stick to the topic if you have specific business credit advice, please? Arguing will get us nowhere. 

(some reason my replies keep vanishing... second time posting this post)

Message 8 of 11
SouthJamaica
Mega Contributor

Re: Business acquisition goal


@Quis wrote:

I'm learning to acquire a business and get business funding. But I have in my credit report a chargeoff (December) because I helped my mom get the car, but she was hit with predatory tactics to pay it back (eating up her monthly income with a payment plan too high per month on top of her current monthly payment with bridgecrest. I tried helping when I noticed this but lost my job at the time due to medical conditions making me pass out at work too often). Then the insurance (progressive) gave a collection on the last month of December (janurary Collection). But I was on the path to greatness with a clean 640 with only 3 missed payments. 

But now I have 9 missed from the auto loan and a couple of 60s because of their multiple payments per month tactics... 

 

avoided a repo by getting an agreement to pay it down but my mom didn't know or ask me about the pay for delete. Don't know if it's too late or such a company will ever. 

im curious: will I still be able to get funding because I myself retained responsibility? Or am I punished for having a joint account? (the insurance wants to be petty and say it isn't a joint but personal). 

My goal is to buy a business a d also acquire business funding and use business credit to help downpayment. And I know how to do it all with my studies. But credit is holding me back. And no I have no relative or friend to help out lol (tired of hearing that. Feels so fake and disconnect with reality with ppl say that. *sadface*)

Goal is to achieve this by summer. Before all this occurred my credit was a few bits away to 700. But now it's a few points to 600. 


If your credit scores are 600 you probably will not be able to get good business credit. 

 

You're not the first person that has no relatives or friends to help out.

 

So you'll have to do it on your own, the old fashioned way...   sweat.

 

Or consider giving up on the idea for now. Starting a business without capital is more often than not a losing proposition.


Total revolving limits 657200 (536700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 9 of 11
Quis
New Member

Re: Business acquisition goal

Appreciate it. I'll just have to face the music without a solution smh.

Even if I'm really good with credit, I thought the support would help but instead it hurt 4 years later of her on time payments.

 

Credit really hinders innovation, smh. I have quite a lot to produce for IP, but can't due this. 

Message 10 of 11
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