ForumsLoans and Lines of Credit

You do not need another loan to pay bills, you need to get that business making some money!!!! Thats where the problem is and that needs to be fixed first. Fix the business and then everything else will fall into place. Once you start getting your bills paid on time your credit score will slowly take care of itself....also you need to contact your creditors and see if you can't get those interest rates reduced before you start defaulting, then the interest rate will go as high as 30% +.

What are you doing for advertising and marketing? I would get the business making money THEN use the profit to pay yourselves a little extra and start working the debt down. Do you have anyone working at the salon? You can out them to work as well selling and making calls.....maybe even a small percentage of new business they bring in....

Bottom line.....expand the business and get the business making money. Thats your ticket to the bills getting paid off.

OK, my business is still up and running, so I havent closed the doors, yet. The reason for consolidating our credit card bills is because that is one reason why I wasnt approved for a loan, too many outstanding bills. The main reason for consolidating is to find a loan with a lower interest rate than the credit cards are. The maxed out cards, well I have been told by numerous people that your first year is the toughest, and yes it was/is. We do have a slow season, which is from June to Nov, and when no money is coming in, or at least not enough to make bills and payroll, then out of pocket money needs to pay them, which is why we used our credit cards to pay for the electricity, gas, payroll and even the loan/rent payments. We still have our Business/marketing plan and yes we do have an accountant.

Look this business HAD and STILL DOES Make Money, our 1st year we made enough just to break even, its was these last months that we are having trouble breaking even for the month because people dont tan inside when they can go outside and do it for free. We are projecting to make a lot more this next year. As far a s another loan, well we have 4 credit cards, most with high interest rates, and none have any late fee's, havent missed a payment, but would be nice to make ONE payment instead of 4 a month.

so calling the credit card companies to get the interests rates lowered is step one, fine. OK, so now you say that we should not look into borrrowing any money period. ??

Rad, I applaud you for taking the risk and seeking your dream, congratulations! This is a BoA sponsored site, so I assume you have a BoA card in the mix. BoA offers a Gold Option Credit Line to consolidate outstanding cards, they may require you surrender your cards because your issue is you are using greater than 35% of your extensible credit. Your scores dropped only after you started using those lines of credit, it is a sad state-of-affairs in the credit worlds, but it is the reality you must deal with. Try Citi Bank, they extend credit that starts you on the way to building business credit rather then your personal credit. Just get the CitiBusiness card, it comes with a minimal line to start, then seek a line increase and you most likely will get it if you ask for a reasonable amount. It is one of the biggest mistakes entrepreneurs make, using personal credit to build their business, but that is no comfort I'm sure. However your in good company! I fully understand the no Risk, no Reward philosophy, however what they don't tell you is you need the stomach for it for 3-years.

L24, personal guarantees are required while building business credit for a number of years. However, there is a distinct difference in using your personal credit cards that report to Experian, Transunion etc. against your SS# vs. getting a business credit card that will report against your EIN# and DUNS number. This is what I'm referring to as one of the big mistakes entrepreneurs make; partly because the amount of information about how to build business credit is scarce. What we need is more and better information about how to finance the early years. Had Rad had the information earlier that told how to get business credit cards or LOCs by using their then existing high credit scores, they might still have high credit scores -- because they wouldn't have used all their extensible personal credit which subsequently ended up impacting their personal credit. But that is no consolation, just the truth. The way forward for Rad is to still seek business credit cards that will not penalize them based on their personal credit situation. When taking out new credit is based on balance transfers, business cards are more likely to extend larger lines knowing you are transferring. This does two things, frees up that personal credit that can be used in an emergency and drives that debt-to-credit ratio down which will start repairing the slight damage created by using all your extensible personal credit. Yes it is oxymoronic that you need great credit, but you better not use it.

P.S. Not all allergens are airborne.

Radiant,

I can get you unsecured cash regardless of your credit. It is a cash advance based off of your future credit card sales. Call me if you would like to discuss more about it and how much you can qualify for.

801-326-0376

Jason
Envision Merchant Capital