Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

Business Credit


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 08-18-2012, 06:30 PM
op25ttfd op25ttfd is offline
Member
 
Join Date: Feb 2011
Location: Belle Chasse, La
Posts: 48
Rep Power: 4
op25ttfd is on a distinguished road
Default Business Credit

I am wondering if anyone knows anything about building business credit. I am trying to see if it is possible to build a line of credit for my business.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 08-18-2012, 08:46 PM
SECTLANDSCAPING SECTLANDSCAPING is offline
new member
 
Join Date: Jul 2009
Location: CT
Posts: 1,912
Rep Power: 0
SECTLANDSCAPING is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
not sure about building credit but to get a business line of credit just fill out a app at your local bank.
Reply With Quote
  #3  
Old 08-18-2012, 10:03 PM
w0283767 w0283767 is offline
Member
 
Join Date: May 2012
Posts: 92
Rep Power: 3
w0283767 is on a distinguished road
Default

Yea just go to your local bank. You can personally guarantee the business line of credit. What you will be able to get will depend on a variety of factors such as collateral for loan, beacon score, and debt to income ratio.
__________________
http://www.northshorelawn.com
Reply With Quote
  #4  
Old 08-19-2012, 11:08 AM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

Quote:
Originally Posted by w0283767 View Post
Yea just go to your local bank. You can personally guarantee the business line of credit. What you will be able to get will depend on a variety of factors such as collateral for loan, beacon score, and debt to income ratio.

one of the major factors is how much money you make and what profits you turn after expenses including paying yourself.
for the most part the line of credit will be initiated around your personal income and credit.

unfortunately to a bank a business is no better then being unemployed and the only exception to the rule is how much green you make.
once you get over a certain threshold and have developed assets and cash flow they will be more receptive but unfortunately starting or owning a business does not open any new doors credit wise or give you a new lease on life.

if your business pays the bills and keeps you above water but does not leave you much else or even allow you to pay yourself generously 12 months of the year going to a bank is most likely gonna be material for a good laugh at the water cooler.


i am not trying to mock you or belittle you and i certainly don't want to discourage you or anyone else but i am speaking from experience and after 23 years in business and turning a half mil a year i am finally able to have some pull with the banks under my business name.

i don't think you will need to make a half a mil but what they will look for is consistency over a period of 5 to 10 years of not only how much your business made but what is left over.
and if you are not drawing a salary as good or better then a good paying job in the industry for yourself personally they will not be too confident that your business will be able to pay them back.

once again the bottom line is build your own credit as well as build the business along the way because what ever line of credit your business will get will revolve around you personally.
Reply With Quote
  #5  
Old 08-19-2012, 05:59 PM
w0283767 w0283767 is offline
Member
 
Join Date: May 2012
Posts: 92
Rep Power: 3
w0283767 is on a distinguished road
Default

DPLD - I dont think the OP was referring to some $100K working capital RLOC to fund large landscaping projects or anything like this. He should be able to get a small line of credit ($1K - $5k) to meet his needs provided his income, beacon, score,etc is decent. Interest rate would probably be high if on an unsecured basis Obviously a bank isn't going to throw a large chunk of money to a start-up company that isn't well established unless he had some valuable unencumbered collateral and an external source of income. It does take years for your business to gain a reputation and for banks to get comfortable extending credit to the business. I bet even yourself has to sign the dotted line personally on whatever credit facilities you have in place for your business as well DPLD.
__________________
http://www.northshorelawn.com
Reply With Quote
  #6  
Old 08-19-2012, 06:04 PM
SECTLANDSCAPING SECTLANDSCAPING is offline
new member
 
Join Date: Jul 2009
Location: CT
Posts: 1,912
Rep Power: 0
SECTLANDSCAPING is on a distinguished road
Default

DPLD is right. The line of credit will be based on your credit not the business. My bank requires a 680 score and it cost $100 a year. The interest is high at 9% but typically your only borrowing for a month.
Reply With Quote
  #7  
Old 08-19-2012, 06:30 PM
w0283767 w0283767 is offline
Member
 
Join Date: May 2012
Posts: 92
Rep Power: 3
w0283767 is on a distinguished road
Default

I just run my business expenses through my credit card and pay off before grace period ends. I avoid paying any interest that way. Get a lot of rewards points that way as well.
__________________
http://www.northshorelawn.com
Reply With Quote
  #8  
Old 08-19-2012, 06:58 PM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

Quote:
Originally Posted by w0283767 View Post
DPLD - I dont think the OP was referring to some $100K working capital RLOC to fund large landscaping projects or anything like this. He should be able to get a small line of credit ($1K - $5k) to meet his needs provided his income, beacon, score,etc is decent. Interest rate would probably be high if on an unsecured basis Obviously a bank isn't going to throw a large chunk of money to a start-up company that isn't well established unless he had some valuable unencumbered collateral and an external source of income. It does take years for your business to gain a reputation and for banks to get comfortable extending credit to the business. I bet even yourself has to sign the dotted line personally on whatever credit facilities you have in place for your business as well DPLD.

i know what he was asking and i know he was not looking for a open end line of credit but the fact of the matter is in this day and age you need credit and assets to borrow money whether it be 1 thousand or 1 million.

using your credit card and paying it off is not a business line of credit and using credit cards is just another way to rob peter to pay paul and has no bearing at all of what the OP was asking.

what he can do to build up some credit is the next time he buys a commercial mower or other expensive piece of equipment he can finance it through a sheffield financing or a wells fargo small business equipment loan company.

they will still use his personal credit but it will also look into bank statements and tax records for the business as well as it will listed on the loan as his name DBA, which will get the name of the business on the loan.

then he can also open up a account with a mcmaster carr catalog which is a good resources for all kinds of tools, hardware and too many other things to mention.
start out with little things and business to business credit lines as well as build your businesses bottom line.

you should not need large lines of credit in business other then what you would need to buy a new truck or something expensive but those are loans not lines of credit.

as landscapers we already have a cash generating business and outside of equipment we really should not need money to survive and if you do it is a red flag to a bank.
if we were a factory and we just got a contract to build a million units of a particular product we would need to borrow money to buy the supplies and pay the help until we start fulfilling the order and even when a business like that bills it is payed out in 90 day intervals.
businesses like that have a revolving line of cash flow credit that they borrow and pay back quickly vs a guy like you or me buying a new dump truck and paying for it over 5 years.

as i stated earlier, if you want to build up your businesses credit then build up your own that is the only way because being the owner or president of your corporation it will only go as far as your own name and credit can take you.
Reply With Quote
  #9  
Old 08-20-2012, 01:09 PM
op25ttfd op25ttfd is offline
Member
 
Join Date: Feb 2011
Location: Belle Chasse, La
Posts: 48
Rep Power: 4
op25ttfd is on a distinguished road
Default Credit line

I appreciate all the responses guys. The purpose of asking is because I would love to buy some commercial grade equipment soon and like many others, I do not have that kind of cash to just throw down. Yes eventually I want the business to have enough money to replace that type of equipment or even pay cash for new things like a truck and trailer. Right now though, a commercial mower is the reason for asking about the credit line.
Reply With Quote
  #10  
Old 08-20-2012, 01:12 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,307
Rep Power: 10
Steve has disabled reputation
Default

Quote:
I am wondering if anyone knows anything about building business credit. I am trying to see if it is possible to build a line of credit for my business.
Would it help to take small steps like getting a business gas card and paying it off every month?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Accepting Credit Cards In Your Business... ritch Promote your products or services 7 02-02-2009 04:00 PM
Business Credit baglady Starting a lawn care business. 7 04-12-2008 02:51 PM
Business credit pnplawn General Business Discussions 2 02-16-2008 09:03 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Brake job!
kslawn
08-30-2014 07:49 AM
Yesterday 06:07 PM
by 04bluesilverado
3 102
Mowing 7 acres
avetslawncare
Yesterday 04:24 PM
Yesterday 05:55 PM
by stevef1201
3 59
Help pricing cut down 7...
Bradcook21
08-26-2014 11:17 PM
Yesterday 04:48 PM
by avetslawncare
6 195
New to the industry-...
Lsmain
Yesterday 10:53 AM
Yesterday 10:53 AM
by Lsmain
0 49
Sod
RosalesLawnCare
08-27-2014 03:47 PM
08-30-2014 07:00 PM
by RosalesLawnCare
2 143
Lawn Route Templates
Landscaper1165
08-30-2014 01:52 PM
08-30-2014 05:04 PM
by stevef1201
1 85
Exmark Lazer Z S-Series...
BLC7
08-22-2014 10:18 AM
08-30-2014 09:49 AM
by BLC7
10 371
Hello! New here and...
CaliforniaFriendly
08-29-2014 11:30 AM
08-29-2014 05:39 PM
by jrs.landscaping
1 107
Stihl engine isn't...
Marcintosh
08-12-2014 08:30 PM
08-28-2014 09:28 PM
by Marcintosh
12 507
Hello
jawnebgoode
08-28-2014 08:37 PM
08-28-2014 08:37 PM
by jawnebgoode
0 53
Hello from Ohio
kurtwin
08-28-2014 05:06 PM
08-28-2014 05:06 PM
by kurtwin
0 73
Softball field
kslawn
08-15-2014 09:28 AM
08-28-2014 12:01 PM
by Steve
16 601
Lawn needs top soil What...
jymie
08-26-2014 11:01 AM
08-28-2014 11:58 AM
by Steve
5 201
Walk Behinds and Texas...
SGL1
08-26-2014 03:53 PM
08-27-2014 10:38 PM
by SGL1
5 192
Say Hello !!!
Steve
03-19-2007 11:18 AM
08-27-2014 08:33 PM
by kurtwin
1,187 331,206
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
08-26-2014 04:21 PM
by ExtremeLawncareServices
110 6,618
How do I approach...
Bradcook21
08-21-2014 01:48 AM
08-26-2014 05:08 AM
by Billy Goat
12 497
Tender Process
M2Dave
08-24-2014 12:31 PM
08-25-2014 04:14 PM
by Steve
2 177
Grass hopper mower
ExtremeLawncareServices
12-05-2013 08:51 AM
08-25-2014 04:02 PM
by Steve
26 3,834
Need help pricing basic...
Bradcook21
08-22-2014 01:21 AM
08-22-2014 01:05 PM
by Steve
2 273
Yearly contract Pricing
jrob0691
08-21-2014 08:57 AM
08-22-2014 01:01 PM
by Steve
6 347
yearly contract help...
jrob0691
08-21-2014 04:09 PM
08-22-2014 12:48 PM
by Steve
1 221
Pampas bushes
Bradcook21
08-22-2014 01:30 AM
08-22-2014 07:17 AM
by grassdoctore
1 193
2014 Gie-expo
ExtremeLawncareServices
08-19-2014 11:22 PM
08-21-2014 08:50 PM
by phlawncare
2 233
Fuel Can Spouts
Shark1611
08-16-2014 09:09 AM
08-21-2014 08:23 PM
by SGL1
11 474
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
08-21-2014 05:03 PM
by stevef1201
6 736
Hello
M2Dave
08-21-2014 12:32 AM
08-21-2014 01:38 PM
by Steve
1 200
New Landscaping Business
rekon32
08-16-2014 02:26 PM
08-21-2014 12:33 PM
by SouthallMowing
8 532
Downed Tree Chop Bid
WesleySnips
08-16-2014 03:47 PM
08-20-2014 01:44 PM
by SGL1
10 504
60 inch honda/bunton...
pblawncare
08-17-2014 11:30 AM
08-18-2014 03:19 PM
by Steve
2 250
Replacement Parts -...
nicholas-KC
08-16-2014 08:40 AM
08-18-2014 03:16 PM
by Steve
4 360
Preparing the soil
Billy Goat
08-16-2014 06:18 PM
08-18-2014 03:01 PM
by Steve
1 269
What to pay help
phlawncare
08-04-2014 08:33 PM
08-18-2014 10:33 AM
by jrs.landscaping
29 1,100
Hello
Jeff1
08-07-2014 11:18 PM
08-15-2014 11:53 PM
by Jeff1
11 562
Lie #2 RESIDENTIAL...
ExtremeLawncareServices
01-06-2014 05:02 AM
08-15-2014 01:46 PM
by mattthelawnguy
54 6,673
Need help 30 HP koler...
Shady Grady
08-01-2014 03:31 PM
08-15-2014 08:46 AM
by kslawn
18 737
New Boomless Sprayer!
BlackRain75
01-03-2014 01:01 PM
08-14-2014 02:37 AM
by BlackRain75
12 1,929
first year update
cmdlawncare
08-12-2014 05:41 PM
08-13-2014 03:29 PM
by Steve
1 364
Hello from Jacksonville,...
JM Lawn Care
08-10-2014 07:15 AM
08-13-2014 07:04 AM
by Sprinkler Buddy
9 473
Hello everyone new to...
maddyandrays
08-11-2014 04:51 PM
08-12-2014 08:58 PM
by Shark1611
2 313
Walk behinds
hpruitcei
08-07-2014 06:28 PM
08-12-2014 02:35 PM
by mattthelawnguy
7 579
New name help
stevef1201
08-10-2014 04:27 PM
08-12-2014 12:03 PM
by Steve
6 469
my little green dilemmas
Lawn Techie
08-03-2014 11:47 AM
08-11-2014 01:20 PM
by Steve
7 565
what the best...
CleanCutsLLC
08-02-2014 01:02 AM
08-11-2014 01:16 PM
by Steve
6 616
Texas lawn care company...
Livingston Lawn Care
07-25-2014 11:29 AM
08-11-2014 01:19 AM
by ExtremeLawncareServices
13 874
Covering all the bases
janslawncare
08-08-2014 10:11 AM
08-08-2014 01:41 PM
by Steve
1 410
New from Florida
ADE
08-06-2014 08:40 PM
08-08-2014 01:32 PM
by Steve
4 475
JOB - Landscape Install...
janslawncare
08-08-2014 10:06 AM
08-08-2014 10:06 AM
by janslawncare
0 367
Battery power tools or...
Steve
08-07-2014 12:24 PM
08-07-2014 05:18 PM
by mattthelawnguy
2 376
My client just told me...
Greg'slawnandlandscape
08-04-2014 08:39 AM
08-06-2014 11:14 PM
by grassdoctore
12 715
» Popular Tags
4wd 34'' ads apartment bid apartment lawn care estimate birdscaping charge christmas craigslist customers estimate exmark fall ferris financing franchise gopherhaul grass gravely hardscapes hills holiday how much to charge introduction invoice labor cost landscape services late lawn lawn care lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website leaf cleanup lesco lighting managing a lawn care business marketing mechanic mowing new and restored landscapes new buisness new business new mower patio install podcast promotion push versus ride reo riding mower scag scripts search engine optimization seo starting a business starting a lawn care business steve stihl theft theft of services tips top dresser toro tractor auger tree care walker wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 02:23 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 02:23 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy