Personal Credit • economics24.com

December 25, 2008

Obtaining Dump Truck Financing, Up to $250,000

Filed under: Loans — Tags: Ambulances, Credit Score, Credit Scores, Dump Truck, Financial Institutions, Financial Statments, High Risk, Income Tax Returns, Lease Period, Lease Programs, Limo Buses, Loan Programs, Local Bank, Logical Place, Payment Obligation, Personal Credit, Pleasurable Experience, Risk Factor, Start Up Business, Type Environment — admin @ 6:21 pm

Rick Reed asked:

There are many alternatives in obtaining dump truck financing. Whether you are a start up or a seasoned business, the first logical place to investigate your financing is at your local bank. This may be pleasurable experience if you have many contacts at your bank but most people usually don’t have these types of connections. The seasoned business must have at least mid 600s on their personal credit scores and be prepared to go through a lengthly paper process. Prior year income tax returns may be required, current personal financial statments needed and various other requests. The start up business must have a credit score properly 680 or higher and will have a much smaller success rate in obtaining bank financing. The business start up is a high risk factor and must adhere to higher lending standards.Most banks and financial institutions offer loan and/or lease programs. The difference is that the loan programs transfers title at the end of the payment obligation, whereas the leasing component offers a rent type environment during the course of the lease with a buy out option at the end of the lease period to take title. Usually, the monies required upfront to acquire a loan are higher and eliminates many candidates. The Leasing arena requires anywhere from usually first and last payment to approximately 20% down of the dump truck cost.On the loan and lease programs for a dump truck applicant, the applicant must investigate whether the bank and/or financial institution considers this a qualified asset which they will lend on. Most lenders like this type of asset but others may specialize in other industries such as medical and transportation such as limos, limo buses, ambulances etc. Some Lenders will only lend up to ten years based upon the age of the truck where others may extend beyond this parameter. Loans and leases usually run anywhere between 36 -60 months based upon the age of the dump truck. Another factor to consider in the financing area, many dump trucks are what they call conversions. The chasis of the dump truck and./or the road truck may be given a new dump box. Obviously this dump box is new but the chasis could be as old as ten years old. Lenders are particular in this area and may not accept a converted dump truck. Obviously, please check with your lender to ascertain their lending guidelines.The dump truck applicant is seeking a relationship with the lender no matter whether it is a start up or seasoned business. The front money to commence the lending vehicle, the monthly payments and the buyout clauses at the end of the lending instrument, if there is one, is paramount in making a prudent business decision. The amount of paperwork and hoops to jump through to get to end of the financing process are considered in the total evaluation process.As we discussed above, there can be a lengthly paperwork process to obtain your financing. Recently, some of the lenders have changed their computer qualification models and accept application only programs. This means there are no income tax returns required, time consuming personal fianancial statments needed, and other key documents either prepared and /or requested. This program is usually geared for the seasoned business but there are start ups applications programs available as well. These application lending programs usually run from $20,000 to $250,000. It is important for the dump truck applicant to check out all the lending programs available. The collateral of the financing is the dump truck and usually no additonal collateral is required. The minimum credit score required for all dump truck applicants may start as low as 575.The last thing you should be aware of is dealer/financing inventory programs. What this means, the lender has repos and/of a off lease inventories that they want to move for cash flow purposes. This financing arrangement is geared to the start up as well as seasoned business and may offer the dump applicant an execellent buying and financing opportunity.When you are shopping for dump truck financing, consider the following, the front money, the monthly payments, what collateral is required, and what the buyout clauses mean. Also, make sure you have a good source of income coming from a contract and/or other methods. Remember, whatever lending program you select, there is more than likely a personal guranatee required.Happy hunting for your dump truck and its related financing…..

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November 19, 2008

What business credit cards are not attached to my personal credit?

Filed under: Small Business — Tags: Build Credit, Business Cards, Business Credit Cards, Credit Score, Find Business, Hello, Personal Credit — admin @ 3:44 am

Erick R asked:

Hello, I am trying to find out how to build my business credit without being attached to my personal credit score. I would like to know if anybody has information regarding what credit cards are available to do this. I would love any free information or links to sites that can tell me how to build my business credit. Thanks!!

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August 30, 2008

5 Action-Ideas To Manage Your Personal Finance

Filed under: Finance — Tags: Bad Credit, Bad Debts, Coins, Credit Rating, Credit Report, Credit Worthiness, Financial Future, Gas Station, Grocery Store, Habit, Interest Rates, Late Fees, Managing Money, Managing Your Money, Money Savings, One Hundred Dollars, Personal Credit, Personal Finance Management, Personal Management, Personal Savings — admin @ 6:45 am

Joseph Then asked:

It’s unbelievable that schools does not teach us everything that we have to know but left out one important subject, that is Personal Finance Management. No wonder we see rising cases of people with bad debts and bad credit.
Here are 5 ideas to better manage your personal finance.
Build a savings account
Your money is something that you work very hard for. If you want to build a savings account for yourself, and for your family, you can do it – but perhaps a little slower than you might like. You can get started by saving all the change you get from shopping at the grocery store, from the gas station and from anywhere else you might go. Putting all this change into a container, you can then fill the container, day by day. As the container is full, roll the coins and deposit this money into your new savings account. You might be surprised, but in just two weeks it is possible you saved twenty dollars, or even one hundred dollars. Your savings account will grow, and you will be managing your money at the same time!
Paying bills on time
Paying your bills on time is going to be a something you need to make a habit for your entire life. Your credit report, your credit rating and your personal credit worthiness is going to depend on how often you are on time when paying your bills. Paying your bills on time is important for a solid financial future. As you pay bills on time, you are less likely to pay higher interest rates, you are not going to pay late fees, and you will build a good credit rating at the same time. To pay your bills on time, all the time, use a system that will have all your bills put into a pile in the same place. Put the bills that are due first on the top of the pile. Put the bills that are due at the end of the month in the bottom of the pile. Look at the pile every day, or at very least every other day. When you have the money, pay the bill on the top of the pile and work your way through all the bills for the month, and then you can start on the bills for next month!
Building good credit
To build good credit you want to pay your bills on time, and avoid paying those higher interest rates. If you have good credit, you want to keep it. What some people do not realize is that you can hurt your credit if you are moving often. Moving every month, moving every year, and moving more than needed it going to lower your credit score. If you live in the same house, the same apartment for over five years this is going to help your credit. Avoid moving when possible. Get a copy of your credit report; review the addresses that are listed for you. Remove addresses that are not applicable to where you have lived in the past.
Use coupons and save money
If you are not using coupons now, you should be. With the price of everything going up, and up, you need to learn to make your money ‘go further’. To make your money last longer, and to get more for your money seek out coupons for the goods and services that you always purchase. The secret to using coupons is this: don’t use, clip or keep coupons for items that you don’t usually use in your home. Coupons are enticing to get you to try other items, and sometimes can cost you even more money. Clip coupons from the Sunday paper, from the Internet online coupon sites, and look for coupons on the products you already purchase. This is going to give you the best savings possible, stretching out the money you have, and that you want to make last much longer for your household budget.
Money management involves working for a living
Money management is a budgetary thing, meaning you need to know how much money you have, and how much money you can spend. If you are spending more money than you are earning, you are most likely relying on your credit cards just way too much. If you are relying on your credit cards, your payments are going up and you will never pay off those credit cards. Money management involves your earning money, and spending the money you earn, and not more than that. If you need more money in your home budget, you can do a few things: get a new job with better pay, ask for a raise, get a second job, or build a business of your own. Relying on others for handouts, making minimums payments on credit cards you can’t afford, and living beyond your means is only going to come back to cause you trouble later in life.

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August 18, 2008

Business Credit Lines-long Island, New York: Using Business Credit Cards Effectively

Pat Gage asked:

This is not the same as using your personal credit to obtain a credit card with your business name on it. Obtaining a business credit card relies on your business credit information, not on your personal credit information.
When you are beginning your business, you will probably need to use your personal credit. After you have fulfilled certain basics, your business should rely on itself for credit.
These basics include incorporating your business as a legal business entity. This does not include DBAs (individuals Doing Business As company x). Consult a local business attorney about incorporations are available in your state.
Another basic for building business credit is establishing a business phone that matches your business address in the national 411 directory. Even business cell phone service can be set up for this. Residential addresses are okay, too. Just make sure you are listed as a business in 411 and that your information is correct. Always give lenders this same information.
The last basic step involves building credit with your vendors. If you are in the service industry, you can develop accounts with your office supply, Internet, and phone service providers. Otherwise, get a credit account with your suppliers.

Now you are ready to apply for a business credit card. Use all business information on the business credit card application. Use business sales numbers, list other business assets and liabilities. List business creditors (your vendors) and use business references. Simply put, make your business stand on its own when obtaining business credit cards.

Once you have a business credit card or two, use them for business expenses only. Carry some balance on them month-to-month, but plan on paying almost all of it off monthly. Do not use your business credit card to purchase items for which you could otherwise obtain business financing. Your long-term goal should be to establish solid overall credit for your business.
Establishing solid credit for your business is relatively easy to do if you start by following the three steps above. Then get business credit cards to further build your business’s credit. With good business credit as your foundation, you are now ready to get a business line of credit that does not depend on your personal credit.
While a business credit card is a great tool for using credit for business purposes, as with any tool, use your business credit card wisely and it will serve your business well.
Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty – starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach, but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com

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August 17, 2008

Business Credit: a Financial Boost Toward Your Business Dream

Filed under: Credit — Tags: Advertising Campaign, Build Credit, Business Credit Line, Business Dream, Business Line, Businesses Work, Credit Check, Credit Profile, Dun Bradstreet, Extra Money, Impossible Dream, Loans, Path, Patience, People, Personal Credit, Small Business Credit, Small Steps, Starting A New Business, Starting Business — admin @ 8:54 am

Pat Gage asked:

Would you buy that equipment your business desperately needs?

Would you hire that assistant so you wouldn’t have to work 70+ hours a week and on weekends?

Would you pay off some bills? Taxes perhaps?

Would you launch an advertising campaign to bring in more customers or clients?

Would you buy residential or commercial property?

Is the lack of small business credit holding you back from growing your business or perhaps the thought of even starting a new business?

What would you do with an extra 30, 50, $100,000 in your bank account right now or the availability of a line of credit?

While you may think this is an impossible dream, the reality of having a business credit line may be much closer than you think. The key to having this kind of extra money ready to spend for your business is in knowing the secrets to be able to acquire business credit.

Securing business credit can seem daunting when you are first starting on this path, but with a few small steps, and a little patience, you will be able to secure the credit you need to get your business where you would like it to be.

The first thing you need to do is make sure your business has it’s own credit. Often when people start businesses, they don’t realize the business credit is tied to their personal credit.

It’s time to do a credit check on your business. Pull your business’ Dun & Bradstreet Credit Profile and see what it says. Don’t have a D&B Credit Profile? This is not going to help your business establish it’s own credit.

As you build credit for business, you will suddenly find a new world is open to you. Instead of having to take out complete loans for each purchase you want to make, you will instead be able to secure a business line of credit. This means you will have money, ready to go, when you need it, but don’t have to use it (or pay interest on it) until that time comes. This is the way large businesses work, why shouldn’t you be using their business credit line tricks?

While you may be thinking you can get the same thing by having a personal credit card, you’d be wrong. Unlike a personal credit card, a business line of credit, whether through a bank, or credit card company (such as the Open American Express card), will be giving perks for being a business account. Some of those perks can include convenience checks. Sure, you’ve seen those with your personal credit card, but when you use ’cash advance checks’ with your card, it will cost a fortune. Business accounts often come with ‘convenience checks’ that do not come with the same penalty fees and charges for usage.

While these two tips may seem relatively simple and basic, establishing your own business credit, and a business line of credit can help you take major strides towards starting or growing your dream business.

Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty, starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach but also a national speaker. For more information on any topic discussed, visit Gage’s site at http://www.10stepstomoney.com

This 10 step system is being used all over the country: Alabama (AL), Alaska (AK), Arizona (AZ), Arkansas (AR), California (CA), Colorado (CO), Connecticut (CT), Delaware (DE), Florida (FL), Georgia (GA), Hawaii (HI), Idaho (ID), Illinois (IL), Indiana (IN), Iowa (IA), Kansas (KS), Kentucky (KY), Louisiana (LA), Maine (ME), Maryland (MD), Massachusetts (MA), Michigan(MI), Minnesota (MN), Mississippi (MS), Missouri (MO), Montana (MT), Nebraska (NE), Nevada (NV), New Hampshire (NH), New Jersey (NJ), New Mexico (NM), New York (NY), North Carolina (NC), North Dakota (ND), Ohio (OH), Oklahoma (OK), Oregon (OR), Pennsylvania (PA), Rhode Island (RI), South Carolina (SC), South Dakota (SD), Tennessee (TN), Texas (TX), Utah (UT), Vermont (VT), Virginia (VA) , Washington (WA), West Virginia (WV), Wisconsin (WI), Wyoming (WY) Major Metro Areas: Albuquerque, Atlanta, Austin, Baltimore, Boston, Charlotte, Chicago, Chico, Cincinnati, Cleveland, Columbus, Dallas, Fort Worth, Denver, Bolder, Detroit, Ft Lauderdale, Palm Beach, Hartford, Houston, Indianapolis, Jacksonville, Kansas City, Las Vegas, Little Rock, Long Island, Los Angeles, Memphis, Miami, Milwaukee, Minneapolis, St Paul, Monterey, Nashville, New Haven, New York, Oakland, East Bay, Oklahoma City, Orange County, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, Puerto Rico, Raleigh-Durham, Reno, Tahoe, Rochester, Sacramento, Salt Lake City, San Francisco, San Jose, Silicon Valley, Santa Fe, Seattle, Spokane, Springfield, St. Louis, Tampa, Toronto, Tucson, Washington DC

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Finding Financing for Your Startup Business

Andy West asked:

Starting your own business is exciting, but also often a little intimidating. Perhaps the most intimidating part is trying to acquire the financing you will need to successfully start your business. Most new businesses come with substantial startup costs, far more than what business owners can come up with out-of-pocket. Therefore, getting financed is one of the crucial steps to starting your own business.
Unfortunately, not every aspiring business owner is able to find financing. Lenders and investors tend to want to see first that the business — and its owner — has a good likelihood of success before they back it financially. Remember, a lender’s primary concern is making sure they’ll be able to get their money back again — as well as the interest accrued. If you can convince a lender of that, your chances of getting a startup business loan are pretty good.
Here are some tips for how to start your own business the right way — with sufficient funding.
Know the Industry
Experience in your business’s industry is extremely important. Lenders and investors will want to know your background in the industry, because if you know the industry well you have a much greater chance for success. If you don’t yet have experience in the industry, you should consider taking classes or working for a business similar to the one you want to start. You can also form a partnership with someone with the proper experience, form a Board of Directors to advise your company, or hire someone with the required experience as one of your top managers.
Clean Up Your Credit
Many startup business owners mistakenly assume that since they are financing a business, their personal credit does not come into play. Quite the opposite is true. Since your business is a startup, it has no track record, of either income or paying bills on time. As the sole proprietor, it will be up to you to qualify for — and guarantee — the loans your business is given.
In order to put your best food forward, it is important to start this process far in advance. Cleaning up your credit can take several weeks or months. You will need to first pull your credit report from each of the three credit reporting agencies, as major differences can exist between what each one reports — particularly if there are mistakes. Carefully go over each credit report, and contest mistakes with both the credit reporting agency and, if necessary, the creditor. Most credit bureaus offer online forms for disputes, which make cleaning up your credit report easier than ever.
Finally, if there are accurate but potentially negative items on your credit report, you may be able to negotiate with your creditors to remove the items — particularly if your track record with them is otherwise good. Taking these steps ensures that you will make the best possible impression when applying for a startup business loan.
Have Some Sort of Collateral
Just as you will need good personal credit in order to acquire financing for your business, you will also need to be able to provide some sort of collateral. If you are looking for a loan to help you start your own business, chances are you do not have any business property yet — although if you do, that would be the logical first choice. Without business property as collateral, however, you will need to use your personal property to guarantee the loan. Examples of property that could serve as collateral are your home or commercial real estate (minus what is still owed on the mortgage), a work truck or other heavy equipment, and office furnit
Write a Business Plan
While you are going through the lengthy process of cleaning up your credit is the perfect time to thoroughly research your business venture. Starting your own turnkey business is more than just getting a business loan and hanging up your shingle. You will need to know where the market stands right now, where it is projected to go, and how your business will fit in. You will also need to know who your target customers are, and how you will reach them. There are many different factors that play into how successful your business is, and you want to be sure to fully understand all of this before you get started.
Once you have done this research, you will put it together into a business plan. This is important because the business plan is how lenders and investors decide whether your startup business is worth funding. A well-researched, well-written business plan demonstrates that you know your market and therefore have a pretty good chance of starting a successful business.
Starting Your Own Business with the Proper Funding
One of the most important parts of launching a business is getting enough funding to start off on the right foot. Most startup businesses rack up considerable costs, and trying to cut corners on some of these can be disastrous to your business’s chances for success. Most small businesses fail within the first two years, usually as a result of insufficient funding and poor decision making along the way. Taking the time to find the proper funding for your business is imperative for not only supporting a successful launch, but also for making your business more likely to succeed.

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