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    30 Replies Latest reply on Apr 20, 2009 3:43 PM by money4u

    Having a difficult time getting a loan

    radiantsun1 Newbie
      First off, Merry Christmas to all..................Second, let me begin. My partner and I opened a Tanning Salon up a year ago. Before we did, we both had extremely good credit and credit scores were high, we could of got credit from anyone. When we applied for the small business loan from the bank, they didnt blink an eye to give us the loan. Today, we both would be lucky if we could get a loan from a homeless person. Our credit sucks. And it seems that we really desperately need to borrow some money so we can consolidate our bills, our credit cards are maxed out. And we need some extra overhead money, we both are still working our other jobs and are using our own pocket money to pay the bills on the Tanning Salon . Can anyone offer us some advice on how we can go about borrowing some extra money, preferably with a lower interest rate than the credit cards offer. ????
        • Re: Having a difficult time getting a loan
          LUCKIEST Guide
          radiant, Tell us more. WHAT HAPPENED?? Did you have a Business and Marketing Plan??
          Do you have an Accountant?? It sounds like every thing was roses when you opened the Tanning Salon.
          Then what?? Why do you need consolidate your bills, and why are your credit cards maxed out??
          The more you share, the better we can help and yes of course, Merry Christmas.
          LUCKIEST
            • Re: Having a difficult time getting a loan
              radiantsun1 Newbie
              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.
                • Re: Having a difficult time getting a loan
                  LUCKIEST Guide
                  Radiant, Thanks for sharing. Do you have a handle on COSTS??. Is there NOW enough money coming
                  in on a weekly basis to pay the weekly bills??. What can you do to bring in more business??
                  DomainDiva has many good ideas on how to succeed.
                  One additional thought. "SCORE". SCORE helps people in business FREE and you can visit SCORE
                  online and take 26 Online Seminars (again FREE) that might help.
                  Hopefully next year will be better. LUCKIEST
                  • Re: Having a difficult time getting a loan
                    radiantsun1 Newbie

                    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.
                      • Re: Having a difficult time getting a loan
                        LUCKIEST Guide
                        Radiant, You say that you have 4 credit cards, most with high interest rates, and none have any late fee's.
                        My BIG present to you. (Credit Card Secret, like Airfares). Call each credit card company and talk to them.
                        If what you say is true and you have been making payments on time, they WILL lower the interest rates.
                        Or contact me and I will help. LUCKIEST
                        • Re: Having a difficult time getting a loan
                          holonyx Newbie
                          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.
                            • Re: Having a difficult time getting a loan
                              Lighthouse24 Ranger

                              Holonyx, you noted that "Using personal credit to build a business . . . is one of the biggest mistakes entrepreneurs make." I guess that's sort of like "breathing air is one of the biggest mistakes allergy sufferers make." There's not exactly a suitable alternative, is there?

                              Maybe that's not exactly what you meant. New business owners absolutely do need to open a business bank account and build credit with lenders and suppliers in the business' name. In the beginning however, the capability of a new small business to borrow money is still going to be based largely on the owner's personal credit, is it not?
                                • Re: Having a difficult time getting a loan
                                  holonyx Newbie
                                  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. ;-)
                                    • Re: Having a difficult time getting a loan
                                      Lighthouse24 Ranger

                                      I didn't see the word "personal" in any of Rad's four posts (relative to their credit cards or anything else), so I assumed it WAS business credit cards that were charged to the max. If not, then yes, what you said . . . although I'm not sure how borrowing more money addresses the root cash flow issue.
                                        • Re: Having a difficult time getting a loan
                                          radiantsun1 Newbie
                                          OK, My mistake, yes the cards we used in order to keep our business alive for it's first year, they are PERSONAL CREDIT CARDS, and yes it has lowered my credit scores so much that i have tried several different people/credit companies, and all have shot me down, to/and including BofA, as far as getting a loan. My main reason for getting a loan is to eliminate having to pay four seperate companies, all with different interest rates, four different payments, I want to pay just one time a month. I think I will first try calling each company and see if they will lower their intestest rates, since i have not been late or missed a payment and i always pay more than the minimum due, maybe a lower rate will help and i won't have to go for another loan. NOW IF ANYONE HAS A SUGGESTION FOR ME APPLYING FOR A BUSINESS CREDIT CARD WITH MY LOW CREDIT SCORE'S, I think it is around 680 or so (it was in the high 700's before), Please suggest, Thanks
                                            • Re: Having a difficult time getting a loan
                                              DomainDiva Ranger
                                              Or you could use the Dave Ramsey way to get out of debt. Take the highest balance card you have and start paying it down while making minimum payments on the other cards. Then when the first card is paid off take that money and apply it to the second higest balance card, pay it off...in other words keep on rolling the money over into the next card balance once the first one is paid off.

                                              Definately start calling the CC Companies and get those interest rates reduced.
                                              • Re: Having a difficult time getting a loan
                                                moogrdotcom Wayfarer
                                                Owning a Tanning Salon is just part of the business. Are you not offering take home oils/lotions/tanning kits?? Reselling customer owned beds?? Do you not offer any other services to keep people coming in during your slow months? Do you have a website? Do you market to the right people? Some people will not pay to tan during the summer but more often then not business people don't have time to sit outside for an hour when they can get a 15 minute tan on the run.

                                                Do you have hotels near you that you can partner with? Partner with health clubs, spas, rec centers or anyone for discounted rates?

                                                Business is supposed to make money and sometimes you have to think over and beyond what everyone else can do to build your niche. Push more people towards year round options instead of month to month or offer free service during your slow time if they pre-buy a winter package that way you get visitors in the door and you can cross-sell / promote other items.

                                                lotions, treatments, goggle/glasses, sun-breathing clothes.. i mean come on - get into it ;) Aren't there clothing lines of swimsuits and shirts that are than-thru that you can see online & offline as well ;)
                                                • Re: Having a difficult time getting a loan
                                                  holonyx Newbie
                                                  Go to Citicards.com and start the process there. They have a great small business program. Another choice which isn't the best but will do in a real pinch is FirstEquitycards.com there is a lot of dirt on them if you google them, so you will be informed, before you sign up. They will issue you credit in the name of your business, but you will only be able to use half of it until you pay your first bill.
                                                  • Re: Having a difficult time getting a loan
                                                    Uncle Leon Tracker
                                                    OK...many may consider this negativism, but, actually, it's realism. There comes a time that one must face facts. And unfortunately, the fact here is that you have just not been successful in this business. "Ya gotta know when to hold em....Know when to fold em...Know when to walk away, and know when to run."

                                                    My recommendation is to consider selling your business (asset sale only, of course; since there's no profitability to sell).; and pay off as much of your debt as possible. Take a year or two to "recover" and pay off debts. As you acquire funds for your next biz effort, take time to LEARN from your shortcomings in your current biz, and LEARN as much as possible about marketing, strategic pricing, and promoting. so you will be better prepared to succeed in your next venture.
                                                    • Re: Having a difficult time getting a loan
                                                      LOANorHOME Newbie
                                                      Hi, I'm a mortgage banker (among a bunch of other things) and we don't do personal loans or credit cards, so I can't help you directly (assuming you don't own any real estate)...but I can tell you what I know...that you don't want to employ the services of any debt consolidation services. Doing that can be hard on your credit, and I don't believe it's necessary. Your credit's not that bad, actually. I've done home loans for people with much worse credit. Maybe just sell-off the business, or maybe "turn your ship" in a different direction? For example, I had an art gallery for years. To bring in some extra income, fresh product and to share shop-watching duties, I started renting out small sections of my gallery to other artists to display and sell their stuff. It worked - I received some rent, and a % of their sales. One day an artist / publisher offered to rent my entire space, at which time I gladly moved on because, honestly, I was bored running a gallery. Hang in there, and best of luck. I'll let you know if I hear of anything more... :-)
                                                      Mary
                                      • Re: Having a difficult time getting a loan
                                        DomainDiva Ranger
                                        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.
                                        • Re: Having a difficult time getting a loan
                                          merchant1 Newbie
                                          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
                                          • Re: Having a difficult time getting a loan
                                            loan guy Wayfarer
                                            Radiantsun1,

                                            Sounds like you just need a way to reduce your debts to reduce your over head. I think you are thinking right to do debt consolidation. Your scores should not have to play a big part in that. email me cory@walkerlender.com.. There are lending institutions out there that will lend money to restruture and consolidate debt with very low ficos as long as the person has not file bankruptcy in the past few years.
                                            --phoenixfinancialpartners.com
                                            • Re: Having a difficult time getting a loan
                                              cwgreen09 Newbie
                                              Have you thought about giving them more reasons to come all year? I once seen a tanning salon in TN that also had a small movie rental store attached -- They both worked out, however, I have a better idea...

                                              What if you found other professionals to work with you and offer massages, or women can get their nails done, facials etc. Or have you thoght about havig a storefront in your salon? Maybe selling sun screans or baeach items that they may want when they actually do get the chance to get some real rays outdors. maybe find out what most of your clients do as hobbies and cater to thsoe needs. They like to go to the beach , well sell them beach balls and sand castle kits.. if they like campping sell them tents, or maybe even sell out door sporting items. That volleyball player may be getting her tan for a good game, mabe she needs a new net and ball.

                                              i don't know really -- I am just thinking that you should create more reasons for them to come to you during the summer seasons as well. If you weren't the owner, what would make you want to come there even when the sun was out? -- I think that if you turned your place into a complete pampering heaven, ladies and gentlemen alike would come. a one stop shop.

                                              Of course, many people that tan care about their appearance and may be interested in certain vitamins and diet plans. natural herbs and more. They may even be interested in many skin care products that help keep the wrinkles away. Look around the local stores and if there isn't anyone selling certain natural and organic items, that may be a key to freedom for you, that is, if you have the space to expand.

                                              Clayton
                                                • Re: Having a difficult time getting a loan
                                                  cwgreen09 Newbie
                                                  Sorry if this is posting twice, I just noticed that is did - and it also did not tell the correct date that I posted on . So tech error -- not my fault that I know of though.

                                                  Anyhow - I just wanted to also say that I didn't notice that someone else had made the dame suggestion as me to sell things in your store etc ... but that is 2 votes for making your company more productive.

                                                  As ofr Uncle Leon .. I hope you don't close everything you do that doesn't get a kick start within a year. Startign a company can take up to three years to really get going with. Aside from that, the tanning salon is a seasonal company ... Maybe the seasons that work out best will allow them to profit enough to hold them over during the off season. --- on that note .. think of things that you could be using your company for during the off season that woudl allow you to continue making money.

                                                  For example - where I live I shoot video.. when it snows you can't shoot if it is outdoor work. So aside from just doing production we do post work too so that we can continue doing projects during the Winter.

                                                  Are there other things you can offer during the Summer that woudl do just as well as your tanning beds do suring the Winter time? Treatments, Spas or etc that you can do? I agree with you and think that getting everything down to one payment can help a lot. I'm not an expert, I have just started my journey as a cusiness owner as well so i am in the same boat as you. I hope some of my ideas have helped though.

                                                  If you ever need a commercial let us know, we can make them animated too if you don't want video.

                                                  Clayton
                                                    • Re: Having a difficult time getting a loan
                                                      radiantsun1 Newbie
                                                      now there's an idea, a commercial, even an animated one, hmmm, wonder what that would set me back??
                                                      John
                                                        • Re: Having a difficult time getting a loan
                                                          cwgreen09 Newbie
                                                          Well, since we are a start up company we are still trying to gather content to show in our portfolio - so we are doing many things really cheap for about a month or two more.

                                                          However, if you are trying to fix your funds where you are behind I wouldn't suggest spending it on a commercial until you have something to offer for both seasons, then yes, advertising is everything --- the reason I said if you ever need one, I meant when you are ready to have one made. -- commercials can be used online and on TV and can help a lot.

                                                          Just my opinion, but like I said, I'm not an business or marketing expert so...
                                                          • Re: Having a difficult time getting a loan
                                                            cwgreen09 Newbie
                                                            PS...

                                                            What I meant by animated was ... with graphics and designs not an actual animation like a cartoon or anything -- we can use photos, animated text and effects, as well as some narration and/or music and there it is - a commercial that is for certain cheaper than video yet it still gets the point across to your target market.

                                                            Have you thought about finding an Angel investor to expand your place into something much more than what it is now? Get the clients rolling in and the dredit cards will get paid for - I am kind of in the same boat as you and are having to work my way to the financial freedom step by step as well.

                                                            just trying to help brain storm - hope it is ok.
                                                      • Re: Having a difficult time getting a loan
                                                        cwgreen09 Newbie
                                                        Have you thought about giving them more reasons to come all year? I once seen a tanning salon in TN that also had a small movie rental store attached -- They both worked out, however, I have a better idea...

                                                        What if you found other professionals to work with you and offer massages, or women can get their nails done, facials etc. Or have you thoght about havig a storefront in your salon? Maybe selling sun screans or baeach items that they may want when they actually do get the chance to get some real rays outdors. maybe find out what most of your clients do as hobbies and cater to thsoe needs. They like to go to the beach , well sell them beach balls and sand castle kits.. if they like campping sell them tents, or maybe even sell out door sporting items. That volleyball player may be getting her tan for a good game, mabe she needs a new net and ball.

                                                        i don't know really -- I am just thinking that you should create more reasons for them to come to you during the summer seasons as well. If you weren't the owner, what would make you want to come there even when the sun was out? -- I think that if you turned your place into a complete pampering heaven, ladies and gentlemen alike would come. a one stop shop.

                                                        Of course, many people that tan care about their appearance and may be interested in certain vitamins and diet plans. natural herbs and more. They may even be interested in many skin care products that help keep the wrinkles away. Look around the local stores and if there isn't anyone selling certain natural and organic items, that may be a key to freedom for you, that is, if you have the space to expand.

                                                        Clayton
                                                        • Re: Having a difficult time getting a loan
                                                          walterdon Newbie
                                                          hello friend good day to you,are you into real business which has profitable potentials i had like to know cause i realy want to go into investing ,do email me at walterdon@gmail.com perhaps we go on from there.

                                                          Walter Don
                                                          +447045780294
                                                          • Re: Having a difficult time getting a loan
                                                            heavenly91321 Wayfarer
                                                            I agree with the person that said you need to expand your sales....I own a distribution company of 100% mineral cosmetics and botanical, natural soaps, cleansers, and anti-aging creams and serums. I would love to discuss the opportunity to assist you with expanding into the $100Billion+ per year (just in the mineral cosmetics) industry!! I can be reached through www.HeavenlyBoutiqueLtd.com
                                                            • Re: Having a difficult time getting a loan
                                                              money4u Wayfarer

                                                              Have you received financing for your tanning salon? Please email me at dawnbergeron@hotmail.com