I need a $50,000 small business startup loan, but I have bad or unestablished credit.?
I work for a landscaping/sweeping company and my boss asked if I'd like to buy out the sweeping part of the business for $50000, thats including all 15 commercial contracts that he has right now with about 10 other contracts within the year and 2 brand new $40000 sweeper trucks . I basicaly run the business, but I need a startup loan to officiate that.The main reason he is selling is with soaring gas prices and my boss starting up a bar and running landscaping/sweeping he needs to gain more sweeping contracts which equals more time which he doesnt really have time for. If anyone can give me some advice or even help Id greatly appreciate it.6 years ago - 5 answers
Start with your bank, , see if they may help.
Then SBA, They also provide business Loans.
As far as credit is concerned, Bad or no Credit , you just might have to pay Higher Interest Rate
Just look around , you might get Lucky
Bad credit and all, the only option really is family, friends, your own pocket.
If he wants out and trusts you to run it all. See if he will do a payment plan. So the sweeper side profits $5000 per month after bills, expenses, etc. Set up a payment plan like $2500 monthly till the company is bought.
No different than a person financing their own home sale. Sure he doesn't get $50,000 in a lump. But he does get it sold and in the end, still ends up with his goal, to sell the company.
But before you dive in. I would ask for the books on the sweeper section. Is it really profitable? What are the expenses on average compared to the average sales? Does gas really cut into the bottom line of this business? What will gas do in 2 years when its $6+ per gallon?
Just because you run a truck and make your weekly check, does not mean it is a profitable business. And since sweeping is a frill item for business. Do you really see the accounts sticking with you as times get tough? Many strip mall locations are closing and going bankrupt. Will that effect your customer flow?
As times get tight, frill items will be removed. Car detailing and washing, lawn care, window washers, etc. As these are frill services and hold no real importance. As times get tight, these are squeezed out. Being a business person in the automotive section. I would guess your boss is wanting out cause he has done the figures and see's he will be broke. So he is looking for a fast bail out.
And what tells me this is $80k in trucks, accounts, yet only asking $50k. Most selling profitable companies ask for 1 year of sales. If $50k is one year of sales, the company is already in the hole too deep just in trucks.
Source(s)by Quiet.Buck - 6 years ago
Find a friend to be a silent partner. Or tell the bank you want to buy a business and be able to give them cashflows of what it currently earns and what your expenses would be.by greatdeals209 - 6 years ago
SBA LOAN: This loan allows you to start a small business. The department of Small Business Administration (SBA) acts as a guarantor for these loans. These loans are provided by banks or financial institutions. Very rarely, the SBA provides the loan directly.
Along with the SBA, certain other government agencies provide financing to small businesses through loans and grants. To avail of this loan, you have to submit the business plan that you have chalked out along with your abilities to indicate that you can handle the business properly. Your credit score should be high to get the loan. The lending authorities check your credit ratings before approving your loan.
A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.
However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are.
When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own.
Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information.
Small Business Owner
Initial Underwriting Group