# Business Credit Building



## daveyclimber (Aug 18, 2007)

To those of you who have poor personal credit. How did you build your credit ratings for your business? Our business has the income to really explode in certain areas however we cannot get financing for specialized equipment like a grapple dump truck and a new stump grinder. What tips can you give me to get on track?


----------



## lxt (Aug 20, 2007)

even with good credit its hard to get financed, no one wants to shell out $$$ for used, new equip. they need quarterly`s, profit spread sheets, etc... secured property(house, biz supplies,etc..) & their still picky, with reason; the markets are not doing well & buisiness expansion during these times its just a crap shoot for lenders(they dont want your equip,etc. they want $$).

in my area, I just downsized, not workforce but equipment!! reason being the market is so competitive & cutthroat the only way to profit is to have no overhead, I only take jobs I can handle(I do miss the toys) if something over and above needs done I Rent!! no monthly payments!! my profit ratio is still the same. 

work hard, save the money & buy it straight out!! unless you have contracts that will require it now!!

LXT..............


----------



## soutz (Aug 23, 2007)

I Agree with lxt. Fixed overheads are scary. save for all your worth, then shell out, you will also get a better deal with cold hard cash.
Only get the toys you know you can make money from.we always buy 2nd hand to test the market then if that item is turning good dough look at upgrading.


----------



## kennertree (Aug 23, 2007)

Get on Dave Ramsey's plan. He has a website and a few books out too.


----------



## Mike Cantolina (Aug 25, 2007)

I agree, don't use credit unless you are guaranteed a return much greater than the interest paid. (leverage)

You could try taking out cd(s) in smaller amounts and let the bank hold them as collateral.

Also check out www.prosper.com This is individual people lending with real money (not fractional reserve banking) Your loan amount will go up for bid for the best interest rate. It's great for lenders also because you can diversify your money by lending a min of $50 to as many people as you want.



Mike


----------



## OLD CHIPMONK (Oct 15, 2007)

Thank you Mike !!!! Just went to prosper and got a small low interest loan in less than a week. Just extrordinary people helping ordinary people. Thanks again !


----------

