PDA

View Full Version : Bad Credit


Thelawncowboy
10-17-2006, 10:24 PM
Hello ive had a lawn service for about a month now and i wanted to get alot of new things but i have bad credit. Anyone know if someone like John Deere would give you business credit or something. Please help on any info.

richallseasons
10-17-2006, 10:40 PM
nobody is going to give you business credit when you have been in business for one month, especially jd,chances are that you may find a company that will allow you to personally guarantee some equipment but the rate will be sky high.

A and N
10-17-2006, 10:45 PM
How bad is bad? without knowing your Beacon Score I cant be of Much help.U.S Bank has a reputation on taking chances, But you need to present yourself really well. No motorcycles, Racing, or any thing that will put you in physical danger. I mean as well as owning them or riding them.Present your self as an established company with a need to acquire more equipment to secure the new jobs your taking on. Make it sound as if your doing the best job you can w the equipment you have and that you need to add add'l equipment to secure your expanding workload. Hope this helped. Just tell them what they want to hear.

topsites
10-18-2006, 02:01 AM
I think it really doesn't matter at this point because if your credit is bad then you need to work on fixing it.
There is no interim solution, there is no magic wand, there is no easy way out.
Cash only would be my advice, and if you don't have the money then you can't afford it.

I know it sounds harsh, but I think sooner or later you're going to have to bite the bullet because take it from someone who has been through bankruptcy: It only gets worse, and when it does there is a time lapse of 2-3 years between the time you get ridiculously deep into debt AND the time they will let you declare it, and in that time you can't hardly afford to clothe yourself and eat.

I can still see daylight at the end of your tunnel, it's a bit of an uphill climb but the sooner you get going, the faster you get there.

So, work on fixing it now, pay off the smallest balance now, then the next smallest, and so on. Pay off ALL the small balances that you can make one payment on right away, then once you get that knocked out, start working on the next one, 2-3 payments or whatever, and keep doing that.

If credit cards are the issue, cut them up.
If you have a nice CableTV / Internet package, reduce it to the basics.
If your electric bill is killing you, adjust your heating thermostat by 2 degrees down right now, and wear a sweater inside the house.
Likely once you put on a sweater, you can turn it down another 2 degrees, my winter temperature setting is 64f.
I do assume it's fall where you are, adjust accordingly if it isn't lol.
And so on...

It will take time but keep doing that, keep paying off the bs and don't borrow no more, you're cash only from here on out and in 6-12 months you will thank yourself for doing it the hard way.

Peace out, and best of luck.

topsites
10-18-2006, 02:13 AM
Let me give you a startling truth that dawned on me some years ago:
It costs MORE money to not have it! Yes, life literally costs you more when you have the least of it.
So get out of that hole, the farther you get away from it, the cheaper life gets, literally.

It's not fair, it may or may not make sense, but it's the way it is.
Realize this, and you got it made.

For one, no payments, no interest fees, no minimum balance violation fees, no late or overlimit fees, that's only the beginning:
Because I have money, I just found toilet paper at 70% off regular retail price. So, I bought close to 100 dollars of it, that's likely the next 5-10 year's worth of tp and you can laugh, but I'm the one really laughing every time I wipe my tail for the next 5-10 years, I'm getting 70% back interest on that 100 dollars, it's like I spent $100 to get back $300 over the next 5-10.
Meanwhile, other folks can't afford squat so they gotta buy tp when they need it at whatever price, whether it's on sale or not, and if it IS on sale they don't got the money to take advantage of it.
So, get out of debt, get in the clear and keep going, start now.

Here's more...

Got car payments? How much is your car worth, in excess of 2,000?
If so, sell it and buy a decent used thing for 2-4 grand, and get out of that payment nonsense.

Then, reduce your auto insurance to Minimum liability only.
Then, start saving HARD so you can pay your auto insurance premium in ONE lump sum when it first becomes due: Doing so will save you $10+ / month in stupid admin fees and stamp and check and time wasted dealing with it (not to mention you never miss a payment so no late fees).

Thelawncowboy
10-18-2006, 12:32 PM
TY for those words of wisedom.

willretire@40
10-18-2006, 12:40 PM
Orchard bank gives credit to just about anyone but proably only $300 limit.

apowell18
10-23-2006, 12:16 AM
I'm just now able to stick my head above water...my wife and i were finally able to purchase a house last year...it only took us a couple of years to increase our credit score by 100pts...go to the library or any book store and get Financial Peace by Dave Ramsey...I've read that book a few dozen times...other than that listen to TopSites...

Ed Ryder
10-23-2006, 01:06 AM
Then, reduce your auto insurance to Minimum liability only.



That's a mistake. I wouldn't follow that advice.

What if he smashes into an Aston Martin? His insurance won't cover all of the problem. He'll be sued for the difference. They'll get a judgment, and that will really hurt his future.

I have a lot of auto insurance.

Ed Ryder
10-23-2006, 01:12 AM
Also, if you've got bad credit, then you're probably screwed for 7 and a half years... unless you do something stupid to make that worse.

I'd say forget about doing a loan and find a way to earn the money you need to get the stuff you want.

The solution might be to cease all unsecured debt payments in order to buy what you need faster, but you've got to really know what you're doing in order to fight off the debt collectors and not get sued.

topsites
10-23-2006, 10:09 AM
Hey, I found a new Web site, they've had articles in several magazines and it looks promising for things like debt consolidation and startup loans. Now I have to warn you, it still goes on your credit record and they use a collection agency so it has to be paid off, but it's based on Peer-to-peer lending, kind of a neat concept.

Check it out, it's Prosper (http://www.prosper.com/) url link is http://www.prosper.com/

I still advise what I said earlier as I myself plan on being a lender at Prosper (check diz: 12%+ roi on my savings), but this may just be the ticket to get you on your feet and running...

...............................................................................................
That's a mistake. I wouldn't follow that advice.

What if he smashes into an Aston Martin? His insurance won't cover all of the problem. He'll be sued for the difference. They'll get a judgment, and that will really hurt his future.

I have a lot of auto insurance.

I am glad you are covered, a perfect driving record based on 10-20 years of actual driving is required.
It's not so much about the legalities, it's about how you drive, you can't tailgate or race for one.
That's no moving violations or accidents in at least 5 years, thou 10 or more is better.
i.e.: You can NEVER step on it (not even a little), you can't even attempt to beat a traffic light, and you learn to drive in last place.

So it really depends how you drive, me thinks age helps, you might need to be at least 40 thou 50 wouldn't hurt.

eshreve1234
10-23-2006, 10:54 AM
Deere will have financing for you. Im not sure if all the dealers do it, by mine does it for me. The dealer takes a security interest in the note/machine, late payments etc., they take it back. I use it because the rate is normally 1-2% lower than what Deere offers people online. I dont know where you live, but my area is primarily AG, so the farmers all use this plan as well. I think the plan is called Retail/Loan Installment contract.

HOOLIE
10-23-2006, 08:01 PM
If you have another job besides this business then you'll be in better shape...if this is your sole source of income and only one month into it...hard to get any type of financing.

Just check around, there are a zillion banks and many like to lend money to those with poor credit, they just give you worse terms.

Also don't believe all you read, I can tell from some of these responses that some folks have no clue what they are talking about regarding credit...

johnnywill08
11-14-2006, 12:50 AM
your cash. forget credit. the most successful landscape businesses i've seen are started with cash for evrything. obviously this means you're not buying a 30k truck or a 8k mower staright cash, but you work and save and you won't bury yourself under a mountain of debt that you'll just work to make payments on. i just saved 6k this summer to buy abrand new leaf loader in my 3rd season. that was unthinkable 3 yrs ago..... you save you grow you save you grow.

obviously in a couple of yrs you can start buying on credit (trucks/etc.) but by then you'll hve the income coming in to pay it off and not further damage your cred.

good luck be patient!

Classified
11-14-2006, 01:49 AM
Topsites, this prosper thing looks really cool. i think i may give it a try to borrow money. thanks for posting and i cannot wait to get into the lending side!!


Hey, I found a new Web site, they've had articles in several magazines and it looks promising for things like debt consolidation and startup loans. Now I have to warn you, it still goes on your credit record and they use a collection agency so it has to be paid off, but it's based on Peer-to-peer lending, kind of a neat concept.

Check it out, it's Prosper (http://www.prosper.com/) url link is http://www.prosper.com/

I still advise what I said earlier as I myself plan on being a lender at Prosper (check diz: 12%+ roi on my savings), but this may just be the ticket to get you on your feet and running...

...............................................................................................


I am glad you are covered, a perfect driving record based on 10-20 years of actual driving is required.
It's not so much about the legalities, it's about how you drive, you can't tailgate or race for one.
That's no moving violations or accidents in at least 5 years, thou 10 or more is better.
i.e.: You can NEVER step on it (not even a little), you can't even attempt to beat a traffic light, and you learn to drive in last place.

So it really depends how you drive, me thinks age helps, you might need to be at least 40 thou 50 wouldn't hurt.

MSS Mow
11-14-2006, 07:36 AM
That's a mistake. I wouldn't follow that advice.

What if he smashes into an Aston Martin? His insurance won't cover all of the problem. He'll be sued for the difference. They'll get a judgment, and that will really hurt his future.

I have a lot of auto insurance.

Whether he smashes an Aston Martin or a Ford escort, it is his liability insurance that covers him, not collision. Collision covers his vehicle, not the other guy's. I may be corrected on this, but this is my understanding of how auto insurance works. That's why most states only require liability insurance, even for expensive vehicles. It is the banks that require full coverage, because their vehicle is then covered.

I have a lot of auto insurance too, but it's never enough. What if you cause an accident that kills 3 people, or worse, permanently disable them. Once the lawsuits are over, you still can be owing hundreds of thousands of dollars that insurance can't cover because they already paid their maximum policy limits.