Whats a good company to get an unsecured loan from?

[stephen4785]

I'v outgrown my current truck/trailer for my mobile mechanic business. I also need a second truck in order to hire someone else. I found a used service truck for $4000 and went to the bank thinking I would get a line of credit for $8k. I figured $4k for the truck and $4k for a compressor, maintenance on the truck, etc... I went to the bank and cant get approved for a loan. My credit score is 740/750/768. So I get a co-signer who's credit scores are all over 800 and I still cant get a loan. The banks explanation is that they would give me a loan for a truck if it fits their criteria of less than 5yrs old with less than 75k miles on it. Well a 4X4 1ton+ truck with a service bed costs $20k+ and I dont want to get a loan for that much. Eventually Ill get a truck with a crane so I dont want to spend $20k on a truck without a crane.
Anyone have a suggestion on where to apply?

[Craizie]

I'v outgrown my current truck/trailer for my mobile mechanic business. I also need a second truck in order to hire someone else. I found a used service truck for $4000 and went to the bank thinking I would get a line of credit for $8k. I figured $4k for the truck and $4k for a compressor, maintenance on the truck, etc... I went to the bank and cant get approved for a loan. My credit score is 740/750/768. So I get a co-signer who's credit scores are all over 800 and I still cant get a loan. The banks explanation is that they would give me a loan for a truck if it fits their criteria of less than 5yrs old with less than 75k miles on it. Well a 4X4 1ton+ truck with a service bed costs $20k+ and I dont want to get a loan for that much. Eventually Ill get a truck with a crane so I dont want to spend $20k on a truck without a crane.
Anyone have a suggestion on where to apply?

Have you tried getting a personal loan vs a loan for a vehicle? That's how I used to purchase motorcycles when I used to ride.

**edit** the interest rate will be higher for a personal loan.

[stephen4785]

Have you tried getting a personal loan vs a loan for a vehicle? That's how I used to purchase motorcycles when I used to ride.

Iv only tried a line of credit so far. Im worried about trying multiple times having a negative effect on my credit score so I wanted to see which way I should go.

[bonnie&clyde]

Onmiamerican bank always gave me loans, i just tell them its to fix up the house, never telld them its for a vehicle

[YALE]

You need a business line of credit, not an unsecured personal loan. This is a business you're borrowing for, not yourself. It doesn't work like a used car. Bring them a business plan, with real numbers, and if the math makes sense, they'll lend you every last dime you need. Don't tie all this shit to your personal credit.

[Chili]

You need a business line of credit, not an unsecured personal loan. This is a business you're borrowing for, not yourself. It doesn't work like a used car. Bring them a business plan, with real numbers, and if the math makes sense, they'll lend you every last dime you need. Don't tie all this shit to your personal credit.

It'll still be on his personal credit since at a minimum they are going to want his personal guarantee.

[stephen4785]

You need a business line of credit, not an unsecured personal loan. This is a business you're borrowing for, not yourself. It doesn't work like a used car. Bring them a business plan, with real numbers, and if the math makes sense, they'll lend you every last dime you need. Don't tie all this shit to your personal credit.

Since it's a new business the business credit has to be tied to my personal credit until the business establishes it's own credit rating. At least thats what Im being told by the bank employees. The issue Im having is that Im not applying for a large amount. There's tons of places that will loan $30k+ for a small business that's new but I guess banks dont make enough money off of small loan.

[Chili]

Since it's a new business the business credit has to be tied to my personal credit until the business establishes it's own credit rating. At least thats what Im being told by the bank employees. The issue Im having is that Im not applying for a large amount. There's tons of places that will loan $30k+ for a small business that's new but I guess banks dont make enough money off of small loan.

Yep. Honestly, most small or startup businesses with a need like this start out on credit cards. Costs too much for a bank to originate and service such a small amount. Sadly, your best bet is probably to find a credit union that will let you go further out than 5 years old, do a straight up vehicle finance, and put the rest on credit cards.

[YALE]

It'll still be on his personal credit since at a minimum they are going to want his personal guarantee.

Ah. Makes more sense.

[03mustangdude]

Sign up for a credit card that is 15 months no interest

[6.7dually2009]

IF you are a Usaa member if your credit is what you say it is they will do a personal loan in a hart beat.

[dblack1]

You might not have a long enough income history to show with it. Anyone who does income verification for a loan will look down on the the newly self employed.

I vote for a amex gold in the business name. They gave me one when I had only been open a couple months, no limit, and with open you don't have to pay it all of on certain purchases. I use it for everything and it saves a ton of hassle. Half of my suppliers and advertisers take it so I'm racking up points also.

[2011GT]

Go to a credit union. My bank doesn't care about age or mileage.

[Chili]

You might not have a long enough income history to show with it. Anyone who does income verification for a loan will look down on the the newly self employed.

I vote for a amex gold in the business name. They gave me one when I had only been open a couple months, no limit, and with open you don't have to pay it all of on certain purchases. I use it for everything and it saves a ton of hassle. Half of my suppliers and advertisers take it so I'm racking up points also.

Yep, saw that a lot when I was in that world (commercial finance). Using Amex to get started I mean.

[mschmoyer]

If the business is doing great it doesn't seem that difficult to save up $4k and grow a little bit slower. Dipping into debt is a mindset that is not easy to dig out of. Starting a business on credit cards just seems like a really really bad idea.

I got a 5k loan on a 92 mustang with unknown mileage a couple years back from a credit union. They didn't seem to care on year or mileage on smaller loans.