As a business owner at 26 years of age, I took the advice of many upon
completion of college and the beginning of my business; use personal
financing options via credit cards, part-time work and allocation of profits
to put back into the business. Entering the third year of operation, we now
have financial records that indicate increased revenues and outline the rapid
growth of the concept. However, utilizing my personal credit has all but
lowered my credit score by the hundreds. What was once a score that reached
well into the 700's and well respectable, now looks pretty pathetic by
contrast. This is presenting a problem that has us in a state of complacency.
What do you all recommend as far as taking the next step and how do you go
about getting around the "credit check," when the times of score plummet
clearly correspond with that of the business opening its doors? Thank you in
advance for your help and time.
If your credit score has declined due to other reasons besides defaulting on
your debt payments, that's something that can often be explained to a lender.
You may want to consider applying for credit with a community bank....they
very often have the power to make common sense decision about issues like
yours.
Jason Milleisen, Founder, Distressed Loan Advisors
Harry Greenhouse | Window Shopper |
11/9/2012 - 3:22 pm
cmharris10,
All too often I see situations like the one you described, end in failure due
to business failing to make payments on non-traditional financing. If I were
you, I'd work on rebuilding your credit rather than get involved in
"high-risk" lending that can often, but not always, be defined as predatory.
Avenues such A/R factoring and merchant cash advance tend to have usurious
terms that leave you little breathing room if you end up missing a payment.
Just make sure you do extensive research before you enter into any agreement.
Good luck.
FundingSpecialist | Window Shopper |
10/18/2012 - 11:46 am
Your recent post has been moved. Please review our Community Best Practices for more information about how best to participate in our online discussions. Thank you.
Have you looked for ways to finance that don't necessarily rely on your
credit? There are many asset based loan programs that can provide a lot of
needed working capital based more on your business and its ability to
generate revenue than on your credit score.
Not knowing much about your business:
Have you looked into accounts receivable financing.
or, purchase order financing.
Or, business cash advances.
Or, bank statement loans.
All can provided needed working capital and are more concerned about how you
convert those financial assets into cash then your credit score.
cmharris10 | Window Shopper |
10/18/2012 - 10:40 am
Show Replied Text…
Have you looked for ways to finance that don't necessarily rely on your credit? There are many asset based loan programs that can provide a lot of needed working capital based more on your business and its ability to generate revenue than on your credit score.
Not knowing much about your business:
Have you looked into accounts receivable financing.
or, purchase order financing.
Or, business cash advances.
Or, bank statement loans.
All can provided needed working capital and are more concerned about how you convert those financial assets into cash then your credit score.
Thank you for your feedback. I have looked into some of these options but not
nearly as much as some of the more "traditional" routes. I will investigate
further and check back. Thanks again for your time and information.
cmharris10 | Window Shopper |
10/18/2012 - 10:45 am
Show Replied Text…
Hi, Well, congratulations on your business ventures, though it is definitely unfortunate that you're in such a spot with your credit. One of our guest bloggers, Marco Carbajo, is a business credit expert. Check out his blog for some great insight about the topic: http://www.sba.gov/community/users/businesscredit?viewall=blog-posts in addition to this section of our website: http://www.sba.gov/content/managing-your-business-credit Best of luck to you!
Well, thank you for your kind gesture. I will check out his blog and the
section of the website you mentioned. Thank you so much for your time. I will
re-post and let you know how it works out.
DLA | Performer | 11/9/2012 - 9:52 pm
your debt payments, that's something that can often be explained to a lender.
You may want to consider applying for credit with a community bank....they
very often have the power to make common sense decision about issues like
yours.
Harry Greenhouse | Window Shopper | 11/9/2012 - 3:22 pm
All too often I see situations like the one you described, end in failure due
to business failing to make payments on non-traditional financing. If I were
you, I'd work on rebuilding your credit rather than get involved in
"high-risk" lending that can often, but not always, be defined as predatory.
Avenues such A/R factoring and merchant cash advance tend to have usurious
terms that leave you little breathing room if you end up missing a payment.
Just make sure you do extensive research before you enter into any agreement.
Good luck.
FundingSpecialist | Window Shopper | 10/18/2012 - 11:46 am
BMT | Window Shopper | 10/17/2012 - 10:04 pm
credit? There are many asset based loan programs that can provide a lot of
needed working capital based more on your business and its ability to
generate revenue than on your credit score.
Not knowing much about your business:
Have you looked into accounts receivable financing.
or, purchase order financing.
Or, business cash advances.
Or, bank statement loans.
All can provided needed working capital and are more concerned about how you
convert those financial assets into cash then your credit score.
cmharris10 | Window Shopper | 10/18/2012 - 10:40 am
nearly as much as some of the more "traditional" routes. I will investigate
further and check back. Thanks again for your time and information.
kmurray | Community Moderator | 10/14/2012 - 10:20 am
cmharris10 | Window Shopper | 10/18/2012 - 10:45 am
section of the website you mentioned. Thank you so much for your time. I will
re-post and let you know how it works out.
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