View Full Version : Business Credit
04-09-2008, 08:16 PM
Just a quick question? What do you do when you need working cash? I have spoken with companies that for a fee will help establish business credit. Is this the way to go and should I pay an up front fee to get business credit. We certainly need some up front money. I am going to work on the business plan all next week and try to present it to a bank to get a loan. We need equipment. I don't want to be in debt though. Any suggestions. It is hard really getting ahead. We do good business but we put everything back in the business and find ourselves not really having a profit at the end of the season.
My husband also work a full time job as a correctional officer his first love is landscaping and we are trying to figure out how to get ahead enough that he can stop working and do the landscaping full time.
04-09-2008, 08:56 PM
It's probably a lot easier to get a loan than it is to find investors...and you're going to have to pay both back eventually, just with interest added on a loan.
What exactly do you mean when you say you can pay a fee to a company to establish business credit?
04-09-2008, 09:10 PM
There are companies that charge a fee to get you business credit. I have never used one. Looks like the going rate is $3,000.00. You pay $600.00 down and $300.00 a month but they will guarantee you at least $100,000.00 worth of credit at the end of the process. I keep asking them why not just take the $3,000.00 out of the credit line once I am awarded the credit. Of course none of them want to do that.
04-09-2008, 11:18 PM
Quote[/b] ]We need equipment. I don't want to be in debt though. Any suggestions.
Why dont you start out with what you can afford?
Are you going to be starting out on the weekends?
Or just jumping right into it full time?
I sold one of my cars I never drove to start my business.
But we cant all just start at the top. Sometimes you have to go with what you got and work your way up.
Now that the season has started I see alot of guys that are probably new driving around in trucks and mowers that arent that great, but they probably get the job done for now.
Do you already have the accounts to pay for the equipment your trying to finance or whatever?
04-10-2008, 11:57 AM
Hey i stared in the back of my wifes dodge magnum now i have a new white chevy with it all decaled out. Start with a mower a weedeater and work your way up .i'm still buying new equipment but now i'm doing landscaping and cleanups .........If you do work with what you own then the money you make is all yours!!!!!
04-10-2008, 12:43 PM
A little while back Rodman was talking on the forum how he built up his business credit by first getting a business credit card at Office Depot. Then he was able to get another credit card too.
If you would like to read more on his posts
Check these out and let me know if they help.
Could you give us a little insight into what equipment you need?
04-11-2008, 07:54 PM
I started my business with a 22" push lawn mower in the back of my Chevy Chevette (anyone remember those) hatchback. Within a couple months I was able to purchase a truck, trailer, and a commercial walkbehind (all used) allowing me to begin bidding commercial contracts.
I am a huge believer in purchasing solid, quality equipment. But, there is no need to start with top-of-the-line equipment when you can't afford it. I bet if you took a survey of everyone who posts here, a good percentage of people started their businesses with less than $1000 worth of equipment.
To the original poster: Why on earth do you need $100,000 worth of credit? What are your equipment needs?
If you want to build credit, speak to your banker. Maybe you can get a $1000 loan for 90 days or 6 months to purchase a great quality weedeater, blower, and a decent starter lawn mower. Make your payments on time everytime. Your credit will surely build quicker than if you try to pay some company for good credit.
Apply for a commercial line of credit from Home Depot, Lowe's, or better yet from John Deere, Scag, or another lawn mower dealer.
Most importantly, consider your options carefully before going into debt to start your business. There are plenty of opportunities to start without dumping a huge sum of cash into business expenses.
04-12-2008, 02:51 PM
Thanks very much for your insight.
I would like to know what is on Baglady's equipment wish list and what is the need for the business credit now. Maybe writing it down will help to better formulate the business growth plan.
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