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Old 08-06-2019, 08:18 AM
 
5,122 posts, read 3,416,020 times
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Curious, what did WF tell you that you needed to provide to get a business loan in the future?

Did they want a detailed business plan? Are you working on that?
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Old 08-10-2019, 08:52 AM
 
Location: North Idaho
24,682 posts, read 32,353,616 times
Reputation: 50125
Banks want you to show how you will pay them back. If you have no paycheck and your new business isn't generating profits, the banks aren't going to be too happy about a business loan for you.


Banks are not there for you to risk their money while you keep your own money safe in a savings account. That is not their business model.



Actual business loans, taken out in the name of the business, are only for well established businesses with some serious assets and a long track record of profit. For a young business, the loan is going to be personally guaranteed by the business owner.
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Old 08-19-2019, 09:48 AM
 
1 posts, read 179 times
Reputation: 10
Quote:
Originally Posted by darrell2525 View Post
Thank you all for the good responses.

Is there any other advice you can please share with me on how increase my chances of recieving a good business line of credit or business loan?

Thank you so much.

It's not just your credit score you need to improve. You just aren't in a good place financially to take care of your own personal finances, let alone run a business with high interest debt.

To be blunt, having a car payment like that ($400) when your renting, score is only 620, unemployed and your only available credit on CC is $300, (Never heard of worse) that's how you specifically try to not get ahead in life. To run a business, you need far better money management skills than you have displayed so far.

You need to focus on finding a job first. And not just a job, but either a much higher paying one than you had before (That lead to the poor position you are currently in), and/or learn far better money management skills.

Shore up your personal finance needs first. Your startup is likely not going to bring in enough profit to pay yourself at all for quite some time. Let alone pay business debt.

Regardless of the loan you get, you ARE going to need more money than that to operate the business, and soon. At that point, you will have all the negatives above, + a lot more debt at a high rate.

You also need to sell that car. Period. Get something cheap enough you can pay cash for. Borrow from Family if you have too. Get out from under any kind of car payment.

Shore up your personal finances first.
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Old 08-22-2019, 08:57 AM
 
Location: Living on the Coast in Oxnard CA
16,252 posts, read 28,151,471 times
Reputation: 21614
If you have the desire to open a business, can you start now? Figure on scaling the business up. I know a locksmith that I worked with. He focused on one thing, opening cars. He then slowly invested the money he made into the business. He added services as he went. Eventually he had a nice business with one full service truck. He then added a second truck. Within 6 years he opened a storefront. He now has 5 trucks and a storefront. Earlier this year he bought a building and him and his wife are opening another business in that building.

Learn to scale.
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Old 08-24-2019, 06:46 PM
 
Location: Dallas suburbs
124 posts, read 43,781 times
Reputation: 150
Starting small, then learning to scale up is the way to go. When you start to show exponential sales growth lenders will take notice. I would suggest having a job and examine your credit report to see if there are any habits or information suppressing your score. Lastly, check with the small business administration or any entrepreneur incubators in your community.

Start small, with your own money, taking the baby steps. Get the assumed name (dba) paperwork. Open a business bank account. Get a sales and marketing strategy. Start finding customers. Lots of legwork can be done, and serious steps are taken to show you are serious about your business, consistent and on an upward trajectory.

I'm curious to know if you are considering a B2C or B2B business model. Can social media impact your sales? Are you versed in the financial statements of a small business? Do you have an accounting strategy? Is it a cash business or will you sale on account with 30-day terms? Will you be accepting credit/debit payments? Do you know the costs associated with alternate methods of payment?

Last bit of advice my brotha, look up Dr Boyce Watkins.
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Old 08-24-2019, 08:11 PM
ERH
 
Location: Raleigh-Durham, NC
1,288 posts, read 1,808,940 times
Reputation: 2459
Quote:
Originally Posted by darrell2525 View Post
Thank you all for the good responses.

I visit Wells Fargo, and after speaking to a Finicial Advisor , I decided to focus on increasing my credit score to above 720 to obtain a good interest rate on business loan or business credit line. I will still pursue my business goals AND focus on increasing credit score.

Is there any other advice you can please share with me on how increase my chances of recieving a good business line of credit or business loan?

Thank you so much.
If you haven't already, check out Credit Sesame. My husband and I went through some pretty significant under-employment years and had to max out some credit cards to buy groceries, pay the bills, get the kids' health care covered, etc. Much of that debt was charged off, so our credit scores took a dive.

Fast forward to Aug 2018 when I signed up for Credit Sesame. My starting score was 520; I put down a $49 security deposit with a Capital One secured card, they gave me a $200 credit line. Since my goal is to increase my score, I used the card for incidental charges, little stuff like gas and fast food, and I paid my balance in full every month but one. My score is now 709, and Capital One increased my limit to $500. At some point, I'll qualify for an unsecured card and higher limit, but I'm happy with the progress.

The folks who advised you to start small and grow -- they're telling you right. Start where you are, do what you can, reinvest in the business, etc.

Last edited by ERH; 08-24-2019 at 09:36 PM..
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Old 08-25-2019, 08:28 PM
 
Location: Lee County, NC
2,764 posts, read 1,068,186 times
Reputation: 3401
I would certainly hope not, but who knows.
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