Bad Credit

Discussion in 'Business Operations' started by Thelawncowboy, Oct 17, 2006.

  1. Thelawncowboy

    Thelawncowboy LawnSite Member
    Messages: 20

    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.
  2. richallseasons

    richallseasons LawnSite Senior Member
    Messages: 479

    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.
  3. A and N

    A and N LawnSite Member
    Messages: 17

    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.
  4. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    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.
  5. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    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).
  6. Thelawncowboy

    Thelawncowboy LawnSite Member
    Messages: 20

    TY for those words of wisedom.
  7. willretire@40

    willretire@40 LawnSite Bronze Member
    from VA
    Messages: 1,390

  8. apowell18

    apowell18 LawnSite Member
    Messages: 179

    I'm just now able to stick my head above wife and i were finally able to purchase a house last 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...
  9. Ed Ryder

    Ed Ryder LawnSite Senior Member
    Messages: 541

    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.
  10. Ed Ryder

    Ed Ryder LawnSite Senior Member
    Messages: 541

    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.

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