Question for all the financeheads out there!

[ASPHALT04]

I started up my business a year ago and all my equipment is paid for cash. I am now at a point in order to expand I need some funding. So after talking to my accountant this winter he suggested I show some profit so I am in better position with bank.
Now this is my situation.....I didn't show enough for the bank to loan me anything and now I owe Uncle Sam a good chunk (which has strained things). My business has paid all its bills on time and I have great credit with my suppliers because of that. I just can't get a loan because my personal credit is not good enough even though I have been active at fixing some of the issues. It has come up almost 100pts in the past 3 months. Without going into a ton of explaination about my credit, is there anyway around that for the business?

[Willis Bushogin]

I started up my business a year ago and all my equipment is paid for cash. I am now at a point in order to expand I need some funding. So after talking to my accountant this winter he suggested I show some profit so I am in better position with bank.
Now this is my situation.....I didn't show enough for the bank to loan me anything and now I owe Uncle Sam a good chunk (which has strained things). My business has paid all its bills on time and I have great credit with my suppliers because of that. I just can't get a loan because my personal credit is not good enough even though I have been active at fixing some of the issues. It has come up almost 100pts in the past 3 months. Without going into a ton of explaination about my credit, is there anyway around that for the business?
Im sending you a PM

[Finance Person]

I started up my business a year ago and all my equipment is paid for cash. I am now at a point in order to expand I need some funding. So after talking to my accountant this winter he suggested I show some profit so I am in better position with bank.
Now this is my situation.....I didn't show enough for the bank to loan me anything and now I owe Uncle Sam a good chunk (which has strained things). My business has paid all its bills on time and I have great credit with my suppliers because of that. I just can't get a loan because my personal credit is not good enough even though I have been active at fixing some of the issues. It has come up almost 100pts in the past 3 months. Without going into a ton of explaination about my credit, is there anyway around that for the business?


Simple answer to that, equipment leasing! If you have great credit and a year or two in business then you should qualify for application only programs that do not require any tax returns

[Financeman]

There are "collateral" programs that will loan against the value of the equipment you already own. You need LEASE financing. Lease financing does not require finacials on amounts under $150,000, doesn't show on your personal credit report, doesn't require down-payments, and you may be able to write off 100% of the purchase price during the first year (as opposed to bank loans that must be written off over 5-7 years usually)
under IRS rule 179. If you are able to take this deduction, and have INCOME then you may effectively save up to 1/3rd of the cost of the equipment. Additionally, unlike a bank loan - 100% of the mos. lease payments are deductible. With bank financing - only the interest portion is.

I hope this helps1

[Fortis Capital]

I would have to agree with Financeman and Finance Person. Equipment leasing is a great route to keeping the paperwork to a minimum if you stay under $150K. With the collateral programs you need roughly about double more than the amount you would like to finance. Generally they take the auction value of your equipment and loan you half. You may want to also consider speaking to a credit repair specialist who can help you remove some of the negative blemishes on your credit. Even equipment financing has gotten more strict in the last year with credit. Hope all this info helps.