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Discussion Starter · #1 ·
Are there any loan co. a guy can trust? Where would one go for a loan with bad credit? I am not incorporated as yet, so is this the problem? Can I only get a loan if my company has an inc. behind it's name???
Please help
 

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Discussion Starter · #5 · (Edited)
Even if you incorporate, until your business is established, they will still look to the principal (you) for credit rating. Get used to paying cash for awhile.....sucks but is quite doable.

Celeste
What makes me established? I started the co. five years ago, but now I find it hard to really take it to the "next level". What makes a company established in the eyes of a bank?
 

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What makes me established? I started the co. five years ago, but now I find it hard to really take it to the "next level". What makes a company established in the eyes of a bank?
The Answer is at www.dnb.com click duns number link . Look to the left and click those links and you will have the answer . You can build your business around your duns number for free ,if you do it yourself .
 

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Take Wetwashes advice here. Your Biz credit starts here. Also, take a look at your business practices. 5 years in and $500 is too much to spend is a sign that some changes are needed.
 

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Yeah, I got a call a few years ago. It was a hard sell tactic. However, there are some useful benefits of using them to record your history with suppliers etc... They are another credit bureau but happen to charge the biz owners versus the banks that research your biz.
 

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What are the 4 C’s that companies look for?

A business’s creditworthiness is ultimately determined by what are known as the “4 C’s of Credit” -- character, capacity, capital and conditions -- most of which can be found explicitly or implicitly in a company’s credit report.

Character includes factors such as: size, location, number of years in business, business structure, number of employees, history of principals, appetite for sharing information about itself, media coverage, liens, judgments or pending law suits, stock performance, and comments from references.

Capacity assesses the ability of the business to pay its bills, i.e., its cash flow. It also includes the structure of the company’s debt—whether secured or unsecured—and the existence of an unused lines of credit. Any defaults must also be identified.

Capital assesses whether a company has the financial resources (obtained from financial records) to repay their creditors. In general, this portion of the credit report is the one most closely reviewed by the credit analyst. Heavy weighting is given to such balance sheet items as working capital, net worth and cash flow.

Conditions consider the external factors surrounding the business under consideration - influences such as market fluctuations, industry growth rate, political/ legislative factors, and currency rates.

A credit manager or loan officer will answer these questions by locating and reviewing:
requests for credit information
customer supplied information
bank information
trade information

These factors are also taken into consideration by other service providers, such as insurance companies to set premiums. More than ever, companies are using automated decisioning, which means they input scores and ratings that summarize the 4 Cs into a financial model to determine the risk of doing business with you.

From dnb website
 

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What is the purpose of your loan? Are you just trying to establish credit? You may have already done this, but I'd start establishing credit with a local janitorial supplier and a couple other vendors. Then start getting out and meeting the bankers in your area. If you can show them that you have a good history of paying off debt to your suppliers, then they may extend you a line of credit. If credit is an issue, then they may require collateral. Once you have the line, buy a piece of equipment in order to use the line and make your payments on time.

Establishing credit takes some time, but this would be one way to go about it.

Jean
 

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Discussion Starter · #13 ·
What is the purpose of your loan? Are you just trying to establish credit? You may have already done this, but I'd start establishing credit with a local janitorial supplier and a couple other vendors. Then start getting out and meeting the bankers in your area. If you can show them that you have a good history of paying off debt to your suppliers, then they may extend you a line of credit. If credit is an issue, then they may require collateral. Once you have the line, buy a piece of equipment in order to use the line and make your payments on time.

Establishing credit takes some time, but this would be one way to go about it.

Jean
Thanks!
 

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A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.

In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount.

The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.

Thanks

Prestiti

Prestiti on line
 

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The loan thing i pretty grim these days. If you have kept impeccable records for the last 5 years showing that you have made a decent profit they may be willing to lend you "some" money. In the old days all you had to do was HILOC money out of your house.....but those days are over. I feel more and more everyday like it is a cash world out there for us. In my business you can get financing on vehicles and machines but I still would rather do cash, the loan terms are just not great.
 

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The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.



Thanks,
downtown Toronto condos
 
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