ForumsShop Talk

Lol, well put.

Let me give a few other details about my buisness. We will be wrapping up our 3rd year here shortly. First year generated 450k, last year 880k and based on this month we are already over 1.25m in sales. I have a contract with a overseas manufacturer and distribut their product here in North America and have exclusive rights to be the sole distributor. All we do is wholesale. Our brand has generated great reviews and feedback and we got in the market at a great time where there was not much of a competition. We will be generating a new line of products in which I can see will bring in another 30-40% in sales next year with the marketing plans we have begun this year. My major issue is funding. A business like this should have been started with a larger working capital which I did not have. The cc helped get me there, but the demand has been growing so fast the cards can't provide. So I used all my personal credit, maxed my cards and now as a sole proprietor the banks will probably not loan me the funds needed. Thats why I have begun to pay the cards off. I can probably be completely out of debt by april next month, but by then I'll probably be shipping over half the items brought in by air. I'm looking to get about 250k loan in which will be put towards inventory. The airfreight makes us lose averagly 5k a month in profits which would easily pay for the loan. Currently we have over 150k in inventory along with other items we could use for colateral, like vehicles and so on. How would you approach a bank with this dilema if my credit score doesn't get better because the percentage of my debt to available credit stays the same. As I drop my balances, they drop my limits. So my percentage doesn't improve. Yet I'm still at a 660-690 depending on what credit reporting agency you look at. I only have 1 30 day late over a year ago because a autopay didn't go through correctly and I didn't realize it. Other than that I have 14yrs of good credit and paying on time. Any advice would be greatly appreciated.

I hate to play devils advocate here, but everything the banks are doing are all things that we all agreed to (whether we knew it or not), when we accepted the terms and agreements of our credit card(s). You may say, I never agreed to anything like this, however, I would bet that if you (and possibly a lawyer) sat down and read every word of every communication sent to you by your cc company, it would all be in there. Also, never forget that using a credit card is just the same as taking a loan, it is borrowed money, just like a traditional bank loan, a pay-day advance, or a pawn shop. It is not our God given right to receive credit every time we ask for it and for whatever amount we ask for. I think we all got very spoiled with the economic boom of the mid 2000's, when they were giving credit like candy. I personally was given credit simply for using my card and paying on time. I went from a $1000 limit to a $7500 limit in a year. That sounds great, but in retrospect, is it financially sound? Would I give that kind of credit to a short term customer of my business? No way! And calling your senator and saying its not fair is childish. As stated earlier, life's not fair! If you don't like how credit cards work, don't use them. "But I need them to run my business and live on." Well then take them as they are until you don't need them anymore. Credit used to be a privilege, not a right. Live within your means, take responsibility for your actions and pay back the money you borrowed as agreed whether it seems fair or not!