Budding GunShop Support

[CedarGrove357]

I hope I am not crossing any boundaries by asking this, but this forum is the single best guidance source I have for my new gun business.

I have been open for a year and done fairly well. I am working on building my credit worthiness for open accounts from a few suppliers. I have one supplier with whom I have had an account for almost a year and have been religious on paying within terms. I am needing to build a couple more, however companies want to see at least four references.

Are there any suggestions regarding how a new business can start building account references? Any suppliers who are willing to take a chance?

Currently I am using credit cards to purchase and pay off supplies I need. I own the building I am using, and I own the property I am using. Banks I have addressed for lines of credit will not open a line of credit because of the type of business it is [not surprisingly].

My personal credit score is low only because I have hilted my credit to pay for the immediate supplies so I am leery to use that. Payments are stellar though.

I asked one of the suppliers if I could use the card companies I use now but they haven't responded.

Thanks for your input.

 

[Skans]

Banks I have addressed for lines of credit will not open a line of credit because of the type of business it is [not surprisingly].

You own the building and land. Do you own it free and clear of any mortgage? I feel certain that you could get a line of credit if your business has some income and you own the building and land. I would try a community bank first. If that doesn't work, you could look at hard money lenders. A hard money lender might get 9% or 10% interest and you will have to pay fees. Other than that, I'd look for a private loan, assuming there is plenty of value in the land and building.

Those are just my thoughts - I'll be interested to see what others suggest.

 

[CedarGrove357]

The land and building are paid for but in my wife's family. I'd rather not jeopardize a marriage and 150 years of family heritage on any business venture. I can pay for the items I want with cash or a credit card now so actual payment isn't an issue.

I've thought about using the cash in a savings account as collateral for a business loan, but I am not sure if the bank loan would satisfy the references part of the open account application.

Object lesson is building the open lines of credit with suppliers [this goes for any new business]. The references line specifically states to "list suppliers who service you as above [meaning as your business]. Open account only . . ."

For a new business this seems a chicken/egg issue. You can't get an open account without references and you can't get references without an open account.

How do other firearms businesses start out with their suppliers?

 

[g.willikers]

How do other firearms businesses start out with their suppliers?

Pay upon purchase until suppliers are satisfied you are worthy of extending credit?
Buy enough from them and they would probably want to keep you happy as a steady customer.

 

[CedarGrove357]

Pay upon purchase until suppliers are satisfied you are worthy of extending credit?
Buy enough from them and they would probably want to keep you happy as a steady customer.

I agree on the strategy; however, I was curious to see if there was a more effective way possible to use the time.

Thanks for the input.

 

[Evan Thomas]

CedarGrove, I wish you the best of luck in your endeavors. That said, we're a firearms forum, not a small-business forum, and this issue isn't one that's gun-related. That means it's off-topic here, so... closed.