Originally Posted by w0283767
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.