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nosparkplugs
10-18-2008, 07:09 PM
How many buisness owners have a Paydex or Dunn & Bradstreet credit history for their business.


After 7 years of business I was able to finally get "true business credit", through a large funding group who; specifically loans money to Incorporated small business, for equipment, vehicles etc. The approval process, is similar to a conventional bank loan, with the added Paydex& Dunn & Bradstreet reporting, currently banks do not report to those credit agencies; furthermore all bank docs ie: checking & savings statements & earnings must be in business name no personal financial information is required or allowed
This loan payment history will be reported to Paydex, and Dunn & Bradstreet; which is what really matters in establishing "business credit". Without this credit rating your loans will always be required to personally guarantee the equipment ie: reported to the three major CRA's; which pulls your personal credit score down. Secondly the loans will remain very small in the amount's.

So I have finally separated my business credit from my personal credit:clapping: No more depending on Scheffield financial their pockets are not that deep anyway:laugh:

Bottom line anything for business use attached to your personal credit does, nothing to increase your paydex or Dunn & Bradstreet credit rating; which does effect your ability to get 100% true business funding.

nobagger
10-18-2008, 07:24 PM
We have been talking about this for a few months now. Our personal debt to income ratio is getting scary to the banks. We were called by Dunn&Bradstreet and its something we are going to do in the late winter or spring. We had to spend all extra $$$$$ on salt.

nobagger
10-18-2008, 07:29 PM
BTW Sheffield Finance has been great to deal with. They gave us a better rate then our bank, by 2%.

Lawnworks
10-18-2008, 07:39 PM
Now you can really sink yourself into debt! Congrats!

nosparkplugs
10-18-2008, 08:52 PM
Now you can really sink yourself into debt! Congrats!

How is that the case? We have managed to grow while others are downsizing, and that requires fiscal responsibility. Why anyone would want to run their personal credit into the ground for a business is irresopsable.

Scheffield Financial lending is a personal loan company for consumer toys & equipment, and does nothing to help a small business grow, your pissing money away with them. Schefflied does not report payment history to Paydex or Dunn & Bradstreet no benefit to your business credit growth. Your neighbor can get a loan from Scheffield for the same equipment. If your a Sole-proprietor than you will never create business credit, thats fine too, and Scheffield will serve your needs well, until your grow beyond their lending capabilities.

Conventional banks loans are no better either you do nothing to build your business credit score with your local banker, might as well go back to Scheffield:laugh

nosparkplugs
10-18-2008, 09:02 PM
BTW Sheffield Finance has been great to deal with. They gave us a better rate then our bank, by 2%.

That may be the case with Scheffield for you, and I felt that way until about four months ago. Scheffield does nothing to increase your overall business credit, and I begain feeling hog tied when looking at $$$ equipment when going through them. Scheffield throws out the first $10,000 loan or "hook" out & then pull's it back when grow to needing another mower through them:laugh: what use are they if you need more money.

CharlotteOutdoorImpact
10-18-2008, 09:47 PM
[QUOTHow many business owners have a Paydex or Dunn & Bradstreet credit history for their business.


After 7 years of business I was able to finally get "true business credit", through a large funding group who; specifically loans money to Incorporated small business, for equipment, vehicles etc.E][/QUOTE]

What companies do you recommend going with for business loans?

I was wondering which large funding group you were talking about...

I am very interested in building business credit, and agree it can be much better than using personal credit for business..

Lawnworks
10-18-2008, 09:51 PM
How is that the case? We have managed to grow while others are downsizing, and that requires fiscal responsibility. Why anyone would want to run their personal credit into the ground for a business is irresopsable.

Scheffield Financial lending is a personal loan company for consumer toys & equipment, and does nothing to help a small business grow, your pissing money away with them. Schefflied does not report payment history to Paydex or Dunn & Bradstreet no benefit to your business credit growth. Your neighbor can get a loan from Scheffield for the same equipment. If your a Sole-proprietor than you will never create business credit, thats fine too, and Scheffield will serve your needs well, until your grow beyond their lending capabilities.

Conventional banks loans are no better either you do nothing to build your business credit score with your local banker, might as well go back to Scheffield:laugh

I don't need credit... why finance when you have cash?

nosparkplugs
10-18-2008, 11:05 PM
I don't need credit... why finance when you have cash?


guess I have not reached that level of success to be blessed with large cash bank accounts for equipment purchases, some of use are still learning. I would think most financial advisors, at least mine would. That is, frown on a total cash purchase for equipment over $10,000 dollars. But you know more than me. Hats off to you

TXNSLighting
10-18-2008, 11:40 PM
Its great that you have all the cash to pay for crap, but its fantastic to have credit. A little debt is good to work on. Just pay it off! Im not say go thousands and thousands in debt, but for certain purchases its good.

Lawnworks
10-18-2008, 11:49 PM
guess I have not reached that level of success to be blessed with large cash bank accounts for equipment purchases, some of use are still learning. I would think most financial advisors, at least mine would. That is, frown on a total cash purchase for equipment over $10,000 dollars. But you know more than me. Hats off to you

Why would they frown on that? You pay cash... you get a better deal and save on interest. And you are not someone else's biotch for 5 years.

Lawnworks
10-18-2008, 11:52 PM
Its great that you have all the cash to pay for crap, but its fantastic to have credit. A little debt is good to work on. Just pay it off! Im not say go thousands and thousands in debt, but for certain purchases its good.

I have debt... but just appreciating assets. I don't even care what my credit score is... you can buy anything w/ 20% down.

It is a lot harder to for me to pull the trigger on buying stuff when paying cash... makes you really evaluate your needs and gives you the motivation to make a good deal happen.

nosparkplugs
10-18-2008, 11:58 PM
Why would they frown on that? You pay cash... you get a better deal and save on interest. And you are someone else's biotch for 5 years.

Maybe Cash? some day for my business, What about all the "perks" that go along with business credit like AMX ie: free vacations, tv's etc. You still carry a montly balance, and pay it off. I will most likly always pay the minimal down payment, and investing the rest. That would be more stable investment of cash IMO than paying cash for a large equipment purchase like $15,000. Most business don't just pay cash outright, most use AMX, then pay it off at the end of the month, and get many perks, while still paying cash, and building credit, cash is king. But as we found out the Credit Market runs the WORLD economy.

nosparkplugs
10-19-2008, 12:05 AM
I have debt... but just appreciating assets. I don't even care what my credit score is... you can buy anything w/ 20% down.

It is a lot harder to for me to pull the trigger on buying stuff when paying cash... makes you really evaluate your needs and gives you the motivation to make a good deal happen.


Ok, so you do finance equipment, even at 20% down? what about the balance? any lending group will pull your credit score period, and you better care about your credit score it is becoming more important in this economy than ever before credit score is king, unless you have 100% cash value. 20% down will offset a poor credit score if you get approved, and get you funded. Good credit gets you zero down, and full equipment funding. Why pay more than is necessary, I disagree with respect.

Lawnworks
10-19-2008, 12:07 AM
If you pay it off every month is really borrowing money? I run up about 10k a month in credit cards but it is always paid off every month.

If you pay cash for a large purchase it really really makes you think about the ROI. Glad I didn't go out and finance a 30k skid steer that may sit a week or even a month at a time. Instead I kept renting till I found a Cat 248 for $4500... people always tell me I find the most incredible deals... but what they don't understand is that I have been patient and saved my money while they were off figuring out how to get financed.

Lawnworks
10-19-2008, 12:15 AM
Ok, so you do finance equipment, even at 20% down? what about the balance? any lending group will pull your credit score period, and you better care about your credit score it is becoming more important in this economy than ever before credit score is king, unless you have 100% cash value. 20% down will offset a poor credit score if you get approved, and get you funded. Good credit gets you zero down, and full equipment funding. Why pay more than is necessary, I disagree with respect.

I was talking more along the lines of property. I have no desire to ever buy another vehicle or piece of equipment through financing. I will pay cash... or I just will not buy it. I spend my winters cruising the internet for deals and replacing trucks and equipment w/ very little investment. Buy low use it for a year or two and sell it for my initial investment and start the cycle over agian. I made 8k last January just buying and selling equipment. The deals are there... it just takes patience and cash.

I am sure my credit score is good, my house is almost paid off at age 25(Dec), and I just bought a commercial property for my business.

My goal is to basically be completely debt free... then my business gets to be more fun... don't have to work to pay bills... also get to say "kiss my @ss" to a few customers if you know what I mean!

nosparkplugs
10-19-2008, 12:24 AM
I was talking more along the lines of property. I have no desire to ever buy another vehicle or piece of equipment through financing. I will pay cash... or I just will not buy it. I spend my winters cruising the internet for deals and replacing trucks and equipment w/ very little investment. Buy low use it for a year or two and sell it for my initial investment and start the cycle over agian. I made 8k last January just buying and selling equipment. The deals are there... it just takes patience and cash.

I am sure my credit score is good, my house is almost paid off at age 25(Dec), and I just bought a commercial property for my business.

My goal is to basically be completely debt free... then my business gets to be more fun... don't have to work to pay bills... also get to say "kiss my @ss" to a few customers if you know what I mean!


So you purchase used equipment with cash, OK now thats understandable, that makes sense. I got the impression your purchasing new $30,000 skid steers with cash or $15,000 Diesel ZTR's with cash. I have a few customers I would like to tell to kiss my F$*!@% arse right now; however one disgruntled customer can do some damage in this economy:laugh:

Lawnworks
10-19-2008, 12:40 AM
So you purchase used equipment with cash, OK now thats understandable, that makes sense. I got the impression your purchasing new $30,000 skid steers with cash or $15,000 Diesel ZTR's with cash. I have a few customers I would like to tell to kiss my F$*!@% arse right now; however one disgruntled customer can do some damage in this economy:laugh:

I guess once you get into the cycle it is much easier to upgrade... sell the cat I bought for $4500 for 10k... then buy one for 15k and sell it for 20k.... kind of keep it rolling... but have nothing in it... and your bids have no overhead... just profit and it is a cycle that just rolls your bank account.

topsites
10-19-2008, 05:15 PM
Actually if done correctly a business can seriously boost a personal credit score too,
but it does involve paying loans off on time and things like that.

You pay cash... you get a better deal and save on interest. And you are not someone else's biotch for 5 years.

In most cases, it appears folks who have the best credit and could get the biggest loans are the ones who almost never do,
that is, the banks will lend the most money the fastest to those folks who need it the least, and yes I presume folks like that
really do buy a lot of things cash.

As for being blessed, there are no blessings, either one has the ability to save the money, or one does not.
And on that note, if one's personal credit history isn't so hot then I am not sure if getting a business rating is such a grand idea.

kaferhaus
10-20-2008, 05:32 PM
Bottom line is if your personal credit isn't any good then you're not going to get "business" credit unless you get taken in by a sub prime lender... and that will usually lead to your downfall anyway.

When you first start applying for "business credit" I don't know of a single company or bank that will not demand a persnal guarantee for the loan or vendor account whatever... to get the loan your personal credit must be solid to begin with.

After a period of years the business then builds credit and you can ask for "true" business credit. It's much harder to do than most think.

We have a D&B rating and have no issues with obtaining whatever credit we need. However, it took several years to obtain it. And even so, some lenders will still demand a guarantee. In these times I don't blame them.

You're either good for the money or you're not.... business or no.

btw, we're incorporated.