How will financing be for me?
Opening a tanning salon(something neat and sophisticated looking.) has been in my plans since I was about 14. All during high school I was home schooled and I worked for my dad cleaning newly constructed houses/businesses before they were put on the market for sale or lease. That is until things went under and he had to file for bankruptcy on all of the residential and commercial real estate that he developed. The I went to Costco for 2 years. From the 4 or so years I worked during school, I hoarded nearly every penny I made so I could fulfill my dream as an entrepreneur when I graduated from high school.
Right after graduating from the Fulton County Public School System, I was set and went out looking for SOMETHING else to do to start my career in a self-owned business. Everything exceeded what my budget was set on until my dads good friends’ dad was retiring and selling his repo company. So, I knew then at that time that was my opportunity. Luckily he allowed me to finance everything since he owned the stuff and he also let me walk in his lot that he’s now leasing to me.
So I’ve been in the repossession/recovery business for over a year now and with the economy HOPEFULLY shaping up, I’ve really been thinking about getting rid of my trucks & selling everything(of course after I have another main source of income coming in). The main reason is because I fear in about 2-3 years from now, this economy will have improved greatly and there won’t be as much recovery work to cover all of my expenses associated with my company.
—OK so now my story about my young life is over, I’ll get to my main concern-
Although I’m only 19 now, I’ve had credit since I was 15(I lied about my DOB on credit card apps which has now been corrected with all 3 credit bureaus). Every since then I ALWAYS did right and kept my credit immaculate as it still is. My Transunion FICO through MyFico is at 738 and is slowly rising as my accounts grow older and as my personal vehicle is on its way to being fully paid off. I do have credit cards, but have {content} in credit card debt.
Since Mar. 8th 2009 to Dec. 31st 2009, my company has grossed approx. 0K. That number may be fairly large, but considering I have 3 other drivers/employees I pay commission to, repo insurance(nearly K for not even the full year), rent on my ex-car lot(just over K for not even the full year), tax, all utilities, and after going ahead and paying my "agent" off for financing the PC’s, software, trucks etc., that number was lowered significantly. Fortunately, 2010 so far is just as busy as it has been for the past 10 months and I’m even having to send repo orders back to finance companies from not having enough time to do them all(I’m not buying another truck).
Like I said, I’m really thinking about going into the tanning business and it’s a decision I’ll have to make between now and the next 2-3 years.
Would someone like me at my age(I will be 21-22yo then) have a hard time being approved for a 0K+ loan with the following factors:
Company grossed 0K.(Honestly I want to leave this out of the app.)
I netted about 0K during the last 3 quarters of ‘09.(before all of my personal bills/expenses.)
I have roughly K in assets(2 recovery trucks, a money market account, and other misc. things).
I have 3 checking accounts(2 personal, 1 business)
I have 2 savings accounts.
I have tax forms that have been filed and I also have bank and broker statements to prove my income.
I have above average+ personal credit but no business credit.(no debt besides personal vehicle which will be paid off in 2 years or sooner)
I have the knowledge, skill and common sense to know how to properly run a business.
I can produce a legitimate business proposal.
Hopefully within the next 2 or so years all of my assets and everything else will have grown.(if it doesn’t there’s a problem. lol)
I know this is a lot of info, but my life ahead is really sticking to my nerves and I need support. I saw how my dad went from one minute having a lot of real estate to the next minute having to dig into his retirement money, and I want to avoid this by all means possible.
I could be making a mistake by wanting to stop repossessing vehicles but as I said, I feel when this economy shapes up I won’t even be grossing enough to cover everything and I don’t want to lose my ***.
The big question, how will banks view my status when attempting to obtain a commercial loan for roughly 0K? Would it be best if I go through the SBA? Could I get the loan w/o having to include my total grossed income? I’m literally fretting over these things.
Thank all of you guys for your support.