Maury Ballstein Posted January 4, 2016 Posted January 4, 2016 Keep getting ads for these and was wondering if anyone had used before. Was pondering a 100k consolidation thing. Meh credit score
Marv's Neighbor Posted January 4, 2016 Posted January 4, 2016 Try the Pegula's, that's lunch money for them.
KD in CA Posted January 4, 2016 Posted January 4, 2016 "Non-traditional" is a pretty broad term. Just make sure you research any offers; lot of scams on the web. And remember anyone offering something is doing so because they are making money from it.
BuffaloBill Posted January 4, 2016 Posted January 4, 2016 "Non-traditional" is a pretty broad term. Just make sure you research any offers; lot of scams on the web. And remember anyone offering something is doing so because they are making money from it. Also depends on what you are consolidating - keep in mind lenders are adept at making short-term look better and are then really screwing you over the life of the loan.
Maury Ballstein Posted January 4, 2016 Author Posted January 4, 2016 (edited) By nontraditional I mean not a major known bank. Funding circle type options. Also depends on what you are consolidating - keep in mind lenders are adept at making short-term look better and are then really screwing you over the life of the loan.Business loans and a little bit of loose ends. Edited January 4, 2016 by Ryan L Billz
John from Riverside Posted January 4, 2016 Posted January 4, 2016 This has been a huge issue on the start up of our Towing company (up from money to pay for the needed things) The two obsticals - Credit.....EVERYONE's credit is crap. Both the me and the other half owner have bankrupties for various reasons. - Dont want too much overhead We want to start this company with as little up front cost as possible......and work very hard to pay things off as we go. - Small loan to pay down on wrecker.....lease for tow yard....various mall admistrative items. This required a small loan at stupid high interest rate.....and financinng of a wrecker at stupid high interest rate. - In 6 months one of the roadside services we have a contract with will actually by our wrecker.....and then take 80% of the fees through their company until wrecker is paid. - Once wrecker is off the books (in about 6 months) we need to buy a flatbed towtruck as it opens up a bunch of other opportunities (copart, FBI tows, sherriff tows, DUI checkpoint tows you need a flatbed truck for that) But the upfront for this is really frustrating. Sure would be helpful if someone would give us a REAL loan that actually pays for the vehicles we need.....we are going to have to get it going.....show profits....then they will be willing to work with us.
KD in CA Posted January 4, 2016 Posted January 4, 2016 This has been a huge issue on the start up of our Towing company (up from money to pay for the needed things) The two obsticals - Credit.....EVERYONE's credit is crap. Both the me and the other half owner have bankrupties for various reasons. - Dont want too much overhead We want to start this company with as little up front cost as possible......and work very hard to pay things off as we go. - Small loan to pay down on wrecker.....lease for tow yard....various mall admistrative items. This required a small loan at stupid high interest rate.....and financinng of a wrecker at stupid high interest rate. - In 6 months one of the roadside services we have a contract with will actually by our wrecker.....and then take 80% of the fees through their company until wrecker is paid. - Once wrecker is off the books (in about 6 months) we need to buy a flatbed towtruck as it opens up a bunch of other opportunities (copart, FBI tows, sherriff tows, DUI checkpoint tows you need a flatbed truck for that) But the upfront for this is really frustrating. Sure would be helpful if someone would give us a REAL loan that actually pays for the vehicles we need.....we are going to have to get it going.....show profits....then they will be willing to work with us. I'd think with a business like that you'd be able to finance the hard assets pretty easily since they are secured. Once you get customers you can factor receivables if you have short term cash issues (though I'm generally not a fan of that practice) for payroll, etc. Can't blame a lender for not providing unsecured loans to a brand new venture with a bankruptcy history. Of course you could get that by pledging your house but that's generally not advisable.
John from Riverside Posted January 4, 2016 Posted January 4, 2016 I'd think with a business like that you'd be able to finance the hard assets pretty easily since they are secured. Once you get customers you can factor receivables if you have short term cash issues (though I'm generally not a fan of that practice) for payroll, etc. Can't blame a lender for not providing unsecured loans to a brand new venture with a bankruptcy history. Of course you could get that by pledging your house but that's generally not advisable. Yeah I am definately not putting my house up for this.....and the other part owner does not have one. I actually cannot use my credit for this venture at all......I am literally any day now for my discharge paperwork on a Chapter 13 and then its 6 months before I can even make a move like that. Its funny though....there is definately a market for what we want to do here.....the company might actually be quite profitable.....and once we show that everyone will be begging for us to take their loans. We will get there.
Gordio Posted January 7, 2016 Posted January 7, 2016 I'd think with a business like that you'd be able to finance the hard assets pretty easily since they are secured. Once you get customers you can factor receivables if you have short term cash issues (though I'm generally not a fan of that practice) for payroll, etc. Can't blame a lender for not providing unsecured loans to a brand new venture with a bankruptcy history. Of course you could get that by pledging your house but that's generally not advisable. I work with this kind of stuff all day. Getting equipment is nice but it is hardly what we in the banking industry would call a secure loan. These things are highly moveable, tough to track down & once liquidated you usually get pennies on the dollar. We actually margin them at 30%. Real estate now is a whole different ball game. We will do loans with real estate as collateral all day long. But yes highly unadvisable from John's perspective to offer up his house as collateral for a startup company. Poor credit is tough to get around though no matter what collateral you are offering(unless it is cash). My bank won't approve anybody that has had a bankruptcy in the last 5 years.
KD in CA Posted January 7, 2016 Posted January 7, 2016 I work with this kind of stuff all day. Getting equipment is nice but it is hardly what we in the banking industry would call a secure loan. These things are highly moveable, tough to track down & once liquidated you usually get pennies on the dollar. We actually margin them at 30%. Real estate now is a whole different ball game. We will do loans with real estate as collateral all day long. But yes highly unadvisable from John's perspective to offer up his house as collateral for a startup company. Poor credit is tough to get around though no matter what collateral you are offering(unless it is cash). My bank won't approve anybody that has had a bankruptcy in the last 5 years. Interesting; I didn't really consider what is probably a very common occurrence of someone defaulting and just taking off in the vehicle. I guess what John's describing doesn't go through the standard auto-lease process. I've only ever done either mid-size venture debt or relatively small leases for computer equipment/photocopiers, etc.
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