True Business Credit

Discussion in 'Business Operations' started by nosparkplugs, Oct 18, 2008.

  1. nosparkplugs

    nosparkplugs LawnSite Gold Member
    Posts: 3,445

    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.
     
  2. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    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.
     
  3. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    BTW Sheffield Finance has been great to deal with. They gave us a better rate then our bank, by 2%.
     
  4. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

    Now you can really sink yourself into debt! Congrats!
     
  5. nosparkplugs

    nosparkplugs LawnSite Gold Member
    Posts: 3,445

    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
     
  6. nosparkplugs

    nosparkplugs LawnSite Gold Member
    Posts: 3,445

    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.
     
  7. CharlotteOutdoorImpact

    CharlotteOutdoorImpact LawnSite Senior Member
    Posts: 252

    [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..
     
  8. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

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

    nosparkplugs LawnSite Gold Member
    Posts: 3,445


    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
     
  10. TXNSLighting

    TXNSLighting LawnSite Fanatic
    from DFW, TX
    Posts: 6,462

    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.
     

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