starting on a shoestring....advice???

Discussion in 'Business Operations' started by lawns4less, Jun 16, 2006.

  1. lawns4less

    lawns4less LawnSite Member
    Posts: 15

    Im a father of eight who lost his contracting biz to divorce. My ex has ruined my credit to a beacon of near 500. I dropped 3000 on a 50" ztr mower and 1600 on a nice dbl gate 6x12 trailer. I have a good head for cust. service and a high rate of motivation. My problem is my troy bilt dont compare to some of the scags or tiger cubs. I need to get into the game with a more "commercial" mower....poor credit makes it tough. Any advice at all will be forever appreciated.:dizzy: :help:
     
  2. hoyboy

    hoyboy LawnSite Senior Member
    from Chicago
    Posts: 346

    try some of the equipment leasing companies out there. They specialize in high risk (in their view) and low credit customers. You will pay more, but at least you will have your equipment.

    Start rebuilding your credit. There is plenty of advice on this subject...do a google search. But do it now. Credit is essential in business.

    good luck...
     
  3. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Why not try and buy used equipment, I started with 5 thousand dollars cash and 3 years after declaring bankruptcy, I don't know what my credit score was other than lets just say NO credit. I bought two used 52"s for 1k each, a 30-year old F-250 for a k, then I bought weedeater and backpack blower and a few handtools and I had 1k left so I bought a 6x12x2 trailer new and off I went...
    The first year BLEW, but...

    As for rebuilding credit, it ultimately takes time, there's not much can be done about that but check this out:
    - Apply for something here, or there. Don't overdo it, one little thing every 6-12 months, once in a while I mean it.
    - When you're disapproved, go to equifax.com and request a free copy of your credit record.
    - Wait for this, and when you get it, review everything.
    - If anything is wrong, go back to equifax.com and fill out a dispute. I think you may have to order it or print it out and send it by mail, not sure anymore but do whatever it takes.
    - If nothing is wrong, go to equifax.com and fill out a dispute anyway, pick something you want disputed.
    Bonus One: Once you file a dispute, equifax has to send some thing to the person who put this bad stuff on your record and they have to verify that this is indeed what happened - Some do, some don't. If they don't / do nothing to verify this dispute, then equifax has no other choice but to take it off your record.
    Bonus Two: One day, something you apply for will be approved, yes it takes time but hey.
    So be selective on what you apply for, at first it may not matter much but later it does.
    Again don't overdo it because too many record checks looks bad too.
    5 years after bankruptcy, I paid a 50-dollar non-refundable 'processing' fee to Capital One, and they sent me a small 500-dollar personal Visa with no annual charge and I kept my nose clean, and eventually things improved... So much for it takes 10 years, see?

    This will NOT fix everything nor will it give you class-A++ credit overnight, but maybe it helps a little, again in the end it takes time but anything is better than nothing.
     
  4. Audrey

    Audrey LawnSite Senior Member
    from Pa.
    Posts: 570

    Just to add a little to Topsites mentioning the credit card: If you can get someone to add you to their card, that will help in reestablishing your credit rating. Have that person get you a card (seperate numbers from theirs) on their account. It doesn't matter what the limit is. Use it a little, pay it off. Maybe buy something really small ($20-$50), carry a balance with that purchase for one month, then pay it off. Work the card and things will eventually turn in your favor. It will not take 10 or even 5 years if you're dilligent. Hang in there.... There's folks out there who have received credit card apps less than a year after a bankruptcy has been discharged. The fees are high, and the limits/terms stink but pay it off each month.


    A
     
  5. drmiller100

    drmiller100 LawnSite Senior Member
    Posts: 562

    take a deep breath.

    do you enjoy what you are doing?

    As a favor to me, think about that question.



    Thanks!
    doug "ex outplacement consultant" miller
     
  6. PR Fect

    PR Fect LawnSite Bronze Member
    Posts: 1,075

    eXmark has a lease. new machine every two years. never yours, but always new. PR
     
  7. Mike33

    Mike33 LawnSite Bronze Member
    Posts: 1,649

    I went thru the same thing on a divorce, however i was lucky not to have my credit ruined. I was able to pay cash for new bobcat and used dumptruck. I dont know what of been worse it was hard to keep because it was new eqpt. and business just starting. Take the advise from previous posts they are good information. And the best of luck to you.
    Mike
     
  8. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    With score of 500, you won't find anybody, even the high risk companies to finance you so your only option is:

    a) save and pay cash (new or used)
    b) find someone that would finance it in their name for you
     
  9. garth1967

    garth1967 LawnSite Senior Member
    Posts: 640

    its not all doom and gloom mate i have been there and done that i have been bankrupt and divorced too.all you can do is use the resourses you have at your disposal .no use thinking if i had this or if i just had more money.as MM said save ,save,save.....work hard and save hard before you no it banks will be ringing you up .this is what happened to me
     

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