I have been in business for over 15 years. I have a steady income of $3K every month by my clients. I have no credit established. if you run a credit check it will come back with no rating. I am looking for at least $25K to purchase a new equipment for my van. I currently operate a carpet cleaning business. My current machine is reaching its last leg and I am seeking a creditor that would work with me. I have bank statements and my parents are willing to co sign. any one out there that would be able to help me with my background? please advise.
First of all, not having a credit score is similar to having a bad credit score for many traditional lenders like banks. They want a history of good credit they can draw from to justify their investment into your business. However, getting an equipment loan or having someone co-sign the loan for you is a good way to get around these things.
When someone co-signs the loan your lender may still have certain requirements that you must meet without the co-signer, but it certainly improves your odds of being approved. Equipment financing is great too because many lenders aren’t as concerned with your credit history since the equipment itself serves as collateral. You should read our article on equipment loans to learn more.