Obtaining credit when booth renting

[shugarrushed]

Okay, so I am a new booth renter in a salon up town. A month in, I'm making enough now to go to a car dealership for a newer (and much needed!) car. The dealership told me that my form of "books" isn't enough proof of income. Since most of my business is done in cash, I don't have a business account. I use PayPal Here to run credit, and with their business accounts, you get a debit card. I need help from someone in the US who can help me get my books under control, pay myself, and have better proof of income. Can anyone point me in the right direction please? Thanks!




(Title edited by moderator to clarify issue)

 

[Beckybee]

Go to the bank, we go to Lombard direct for car/van loans

 

[AcidPerm]

Go to the bank, we go to Lombard direct for car/van loans

OP is based in the States so completely different rules apply.

 

[deanosnana]

Can anyone point me in the right direction please? Thanks!

Hi shugarrushed, I would find an accounting firm and ask their advice. Best of luck!

 

[The Geek]

Okay, so I am a new booth renter in a salon up town. A month in, I'm making enough now to go to a car dealership for a newer (and much needed!) car. The dealership told me that my form of "books" isn't enough proof of income.

I don't think this is really a US centric issue... it is an issue about trying to obtain credit as a self-employed business.

Even if you establish a company, pay yourself, track all income and expense via something like Quick Books and have a business bank account you will have a similar problem: Obtaining credit when your source of income is a business you fully own, control and that has little to no history.

I don't really know what the answer is. For me it just "came with the territory" and I was really not able to obtain credit for a couple of years. Not sure how things have changed since I was in the US, but suspect (depending on WHAT you are trying to obtain credit for) that it is the same (if not harder).

You will need to get into "save mode" to reduce your credit requirement and to demonstrate your financial stability for the lender. The less risky for the lender, the more open they will be to help.

A lease may be easier to obtain (though IMO more costly). I would also recommend trying to do the deal towards the end of the month (and end of quarter is even better). That is generally when their salesmen are under the most pressure to hit numbers (which makes them more open to "deal").

Hope this helps. It isn't an easy spot to be in!

 

[shugarrushed]

I'm not sure what Lombard direct is... a loan company/bank? But thanks everyone for the responses! I've got some saved... enough for a down payment on a vehicle, just the dealer said I have no proof of income, so they couldn't guarantee that I would have the funds to pay the rest of the loan. So quick books is a good start to prove that I have income for the business, but even then it will take a couple of years to establish stability, right?

 

[BannerPenguin]

I'm not sure what Lombard direct is... a loan company/bank? But thanks everyone for the responses! I've got some saved... enough for a down payment on a vehicle, just the dealer said I have no proof of income, so they couldn't guarantee that I would have the funds to pay the rest of the loan. So quick books is a good start to prove that I have income for the business, but even then it will take a couple of years to establish stability, right?

Absolutely right. In the UK most places won't extend you credit until at least 2-3 years in business.