Question by business4jroberts: I'm a small business owner with bad credit in need of financing. Is it possible? I am currently leasing a suite in an office building. I have opened a nail salon and am having a hard time keeping up with the rent. I want to get some sort of financial help to purchase equipment that would allow me to rent booths to other operators, which would help me generate revenue. I need money to purchase manicuring tables and chairs. If I could just get a little help, I could really get this thing up and running, I have been told that I am very good, and being self-employed is wonderful. I am a licensed manicurist and I have big dreams of having my own franchise of nail salons. I just don't know how I can do that when I don't have the money already. I'm just trying to better myself and provide stable work environments for others. You can check out some of my work at http://www.myspace.com/nailit2em Best answer for I'm a small business owner with bad credit in need of financing. Is it possible?:
Answer by Gn Lee
First of all you need to, if you haven't yet, draft a business plan to show a lender what you plan on doing to generate money. A lender will look at your plan and decide what the risk is. Unfortunately your credit is a problem, but some lenders will take the risk if you have been in business for at least 24 months. You may to take a higher interest loan or use collateral to secure the loan as well.
Answer by batwanda
Well first, dont get upset. But you put the cart before the horse. You should have though this through before signing a lease. Next, I can really relate. I have excellent credit, have been in business 2 years, have a great set of books showing incredible gross income and have been finding it very hard to get financing. We are owned by a US and a German citizen, which is our problem. So, dont think you are in it alone, however as a mortgage person (my other life) I think you will have a tough time getting the financing on these items, as a loan. Have you asked the companies themselves to finance the chairs ect? Next is there a way to rent space to someone who maybe owns these items already? CAn you find used equipment? Maybe joes nails will open a "chair" in your location under your name, joe does well and he can expand this way ...think creatively because i think traditionally will be hard. Good Luck ***Business credit? It is all signed for by personal promises until the business credit has been ongoing for a few years***
Answer by dmitryivanoff
Separate your personal credit from your busines credit
Answer by jdkilp
By the term "bad credit" I'm assuming you've only thought of trying to get a loan from a financial institution. But, that's only one source of money for small businesses. Many go to friends/family, "angel investors," or "friends of friends." If you can convince someone that you are able to make money and you're a good business risk, then you will find someone to put up the money. Of course, you could simply work for someone else in this line of work for a period of time until you save the money to start your own business.
Answer by Eric C
Every situation is different. Although you've provided good details about yours, you may also want to consider getting expert advice from legitimate people who are in business to help business owners to get business credit. It's important to distinguish between business credit and personal credit. For example, if your business is incorporated, it is treated as a separate borrowing entity other than your own personal circumstances. Look at what I've found: http://tinyurl.com/2j2u7c . I listened to one of the owners of this business who provides advice on business financing. They operate on sound, ethical business principles.
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Are you a business owner trying to find practical ways to finance your business? If yes, then you must consider business equipment lease financing. When compared to business loans, applying for an equipment lease is generally easier and the application process, faster than loans.
What do you need to get approved for an equipment lease? Many leasing companies require the submission of the following documents: financial statements, tax returns, business plan and lease proposal. Credit history is another major factor to get a lease. Of course, if you can show good or excellent credit, a lessor will be more confident in your ability to keep up with your lease payments.
Nevertheless, if you have a history bad credit, it is possible to get the equipment lease financing you need. In this article, let us talk about the steps that you can do to be able to acquire a lease despite having bad credit.
Leasing Programs For The Credit Challenged
It is a relief to know that there are business equipment leasing companies that extend special lease programs for businesses that are credit challenged. As a matter of fact, acquire a business equipment lease can be just the thing you need to be able to improve your bad credit.
If you plan to apply for a lease, be sure to check your credit report to make sure that your credit problems are in the past. See to it that you do not have past due debts in any of your accounts and that you are in good terms with your present creditors. For those who have a record bankruptcy, you application may get rejected if you have been discharged recently or for less than 2 years.
To increase your chance of getting approved, include a letter of explanation along with your lease application. In your letter, be sure to include the steps that you have already done to improve your credit and to avoid being stuck in bad credit again. Needless to say, a potential lessor is most interested to learn that you have the capability to submit your monthly lease payments throughout your lease term.
A Word of Advice Before Applying for A Lease
Prior to submitting an equipment lease application to your chosen leasing company, make sure that the lessor accepts applicants who have bad credit history. Keep in mind that many leasing companies strictly require good credit and submitting your lease application to the wrong lessor will only result to rejection.
Each time you submit a lease application to a leasing company, an inquiry will be made to your credit report. Too many inquiries may cause you to drop a few points from your credit score which could be a problem if you have a low score. Add to this, a potential lessor may decide to reject your business if it finds too many inquiries from other leasing companies in your credit file. If you do get rejected a couple of times, other leasing companies will have doubts about your credibility.
Lai Castillo is an equipment leasing broker that specializes in getting start up equipment leasing and providing articles in finding solutions for Leasefunders.com.
For equipment lease application visit leasefunders.com. Suggest Equipment Lease Tips For the Credit Challenged Topics
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