How to get a loan to start my bulk vending business when I have bad credit?!?!

[*Jessica*]

For the record--I have already searched the topic already but haven't found anything that really hits the topic I want....

That being said...

I have screwed up credit. So much so that in the recent past (within the last two months) that I have tried to get a loan--they wouldn't give it to me BECAUSE of my credit rating.

I have looked on the Small Business Association (SBA) website and haven't found what I need.

Asking for a loan from my father is OTQ, because he's not supportive of it at all--and he's an golpher--but that's another story---

My mother doesn't have the money either--and shes such a negative nancy about the whole bulk vending thing that I don't even bother telling her. I love the woman--but she drives me NUTS!!

my other business venture (flea market tarot and rune reading business) isn't making that much money at the moment....any advice?!?!

[vendsmarts]

Start out with one machine and grow. Look locally on craigslist. I bought machines on there for as low as $10. Then find a location. Ask friends if you can put a macine at their work. Buy the candy/Gumballs at a whole sale club. Use all the money u make to expand.

[TKK]

Only choice is personal loan. If u have bad credit, fund out why. I can get u a free copy of it too I sell cars not that ud trust me but I always give my.customers credit advice. If not then start small and use your net to pay for new machines...credit is super important

[dperry]

Prosper.com. I've had 3 vending loans from them. They allow private investors to bid on private loans. No bank qualifying.

[Quickinvestment]

Prosper dot com

[havending]

Prosper.com. I've had 3 vending loans from them. They allow private investors to bid on private loans. No bank qualifying.

I have not heard of prosper but if deperry has used them and likes it I would say go that route. Also work on that credit there is a product out there called turbo score that is great. I used it when some golpher used my credit

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[bacho]

Jessica, it sounds like your parents know you better than yourself. Your other business venture isn't doing good and you want to start another one. I won't lecture you because you're probably getting enough of that from mom and dad.

Your best bet is to start small like most of us have on this forum. Even if it's only one machine at a time, you can build a nice route. However, if you're looking to get rich quick from vending, you've chosen the wrong business. A loan will only put you in debt further. There is a lot more to vending than just throwing a machine out there and collecting the money from it. You are going to be marketing executive, accountant, maintenance technician, driver, route manager, customer service rep., janitor and what ever else you can think of. You'll learn how to swap products that are not selling. You'll find out that a product will can be sold out for three months straight and then die off because the initial excitement of the new machine wore off. You'll find out all this stuff as you go along. If you stick with it, you'll reap the dividends.

You need to have patience as a vendor. If you don't want to wait on your investment to produce for you, then you chose the wrong business.

My first year I didn't make a cent. All the profits from the machines were invested back into the business for expansion. By doing this, it gave me the opportunity to see if I liked it or not. If you decide vending isn't for you, you're not out big bucks that needs to be paid back. A loan is designed to be paid back. If you can't repay it, don't apply for it. That's why the housing market is the way it is right now.

Do you have a back up plan if you apply for the loan? In other words, how can you pay it back if the business falls on it's nose.

These are just some things you might want to think about before you dive head first into a loan.

[caserri]

Prosper.com. I've had 3 vending loans from them. They allow private investors to bid on private loans. No bank qualifying.

Unfortunately there is bank qualification. I was declined when I applied at prosper. I mentioned this in a thread a few months ago when I was looking for alternative funding sources myself.

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[dperry]

Unfortunately there is bank qualification. I was declined when I applied at prosper. I mentioned this in a thread a few months ago when I was looking for alternative funding sources myself.

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Oh wow! Ok. I never had that that issue. The rates did go up with each loan tho.

[caserri]

Yea, I was under the impression that it was purely funded by private individuals which is why I applied. When I was declined due to poor credit, I dug deeper and found the following statement buried on their "Legal Compliance" page...

All loans originated through the platform are made by WebBank, a Utah-chartered Industrial Bank and sold and assigned to Prosper. Prosper provides services to WebBank in connection with the origination of such loans. Prosper services all loans made to Prosper borrowers on behalf of Prosper lender members who purchase Notes dependent for payment on such loans.

So apparently the loans are made through this WebBank, then sold to Prosper for what I assume is a substantial discount. Prosper then collects the payments and uses them to service the "lenders" who have invested in the loan.

[JLM Vending]

I am so glad that i never got a loan for the U turns. I just checked some of my notes from the past, and i wrote down that they wanted to sell me a deal of 100 Terminators for 68 K plus shipping and tax and 25 machines for 18 k.

[mission vending]

For the record--I have already searched the topic already but haven't found anything that really hits the topic I want....

That being said...

I have screwed up credit. So much so that in the recent past (within the last two months) that I have tried to get a loan--they wouldn't give it to me BECAUSE of my credit rating.

I have looked on the Small Business Association (SBA) website and haven't found what I need.

Asking for a loan from my father is OTQ, because he's not supportive of it at all--and he's an golpher--but that's another story---

My mother doesn't have the money either--and shes such a negative nancy about the whole bulk vending thing that I don't even bother telling her. I love the woman--but she drives me NUTS!!

my other business venture (flea market tarot and rune reading business) isn't making that much money at the moment....any advice?!?!

Its hard enough to get loans in today's environment with for business owners with good credit to purchase vehicles, equipment or real estate. With bad credit I don't think you will have many options other than an "angel investor" but in many cases those are friends and family that are willing to jump in and help you. From your post it does not seem that this is a viable alternative either.

As previously suggested, you best option is to "bootstrap it", save up get one machine, save your profits and buy another. Rinse and repeat until you get to where you want to be.

[JLM Vending]

Its hard enough to get loans in today's environment with for business owners with good credit to purchase vehicles, equipment or real estate. With bad credit I don't think you will have many options other than an "angel investor" but in many cases those are friends and family that are willing to jump in and help you. From your post it does not seem that this is a viable alternative either.

As previously suggested, you best option is to "bootstrap it", save up get one machine, save your profits and buy another. Rinse and repeat until you get to where you want to be.

I was just like you Jessica and wanted a loan. My advice to Jessica is also to not think you have to get a loan. A loan just puts you in further debt, by the time you paid off your debt, you could have just reinvested your profits and built it the more safer way. There is going to be a lot of trial and error along the way. i have only been in vending less than a year, and there has been much trial and error for me. When we say build it slow, we don't mean take forever to build it. It just means make sure you know what you are doing before you make a big gamble. If I got a loan for 100 k for the u turns, I would never be able to pay it back and I would be out of business. Im thankful that i learned that. Reinvest the money you make from your route to expand. If you have a part time or full time work, then reinvest some of that. Reinvest, learn, expand.

[*Jessica*]

Jessica, it sounds like your parents know you better than yourself. Your other business venture isn't doing good and you want to start another one. I won't lecture you because you're probably getting enough of that from mom and dad.

I've had a small 5 machine bulk vending business "drip operation" when I was in Kentucky and was successful making $60 per month. I lost the location when the owner said she was gaining weight from eating all of my candy in the machines. I kid you not! So I have had the experience before, its just been awhile...

Later on though, my ex and I broke up so I had to move back down to GA while I was 6 months pregnant and the machines got lost in the move. The good thing is that the machines didn't have any money in them so the ex didn't get anything from it.

The point I am trying to make here is that my parents don't know me better than I know myself. Vending has a 90% success rate, which means a 10% failure rate. My mother would be in that 10% because she has no clue whatsoever how to run a business. Same with my father. I however, consider $60 per month for one location as a BIG success.

(I use different machines than most vendors)

[mainor5251]

Not sure of where your figures come from but I can assure you vending does NOT have a 90% success rate. As far as the loan don't do it, bad idea for any new business. Take the others advice, buy a machine get it placed then reinvest profit, I think you will be surprised at the snowball effect and how quick you can get up to a couple dozen locations. Good luck Jessica, remember passion and persistence goes far in this business!

[bacho]

She's correct in saying that, mainor. However, that's the vending industry as a whole. Bulk vending only makes up 1% of the vending industry.

Jessica, don't take offense in what I said. I didn't mean for it to sound snitty. A 5 machine 1 location vending route is not really a business though. That's a hobby. Just because you had a great location in Kentucky doesn't mean you will find one like it in Georgia. Hopefully you learned by the excuse the owner gave you. Don't expect a location to produce all the time if you're vending candy. You also will loose locations for no reason at all.

What machines do you have that are different from most of the vendors?

[mainor5251]

She's correct in saying that, mainor. However, that's the vending industry as a whole. Bulk vending only makes up 1% of the vending industry.

Jessica, don't take offense in what I said. I didn't mean for it to sound snitty. A 5 machine 1 location vending route is not really a business though. That's a hobby. Just because you had a great location in Kentucky doesn't mean you will find one like it in Georgia. Hopefully you learned by the excuse the owner gave you. Don't expect a location to produce all the time if you're vending candy. You also will loose locations for no reason at all.

What machines do you have that are different from most of the vendors?

you really believe that 90 out of 100 people who buy a vending machine one kind or another with hopes of owning a successful business makes it happen, come on. No industry poll or what ever is gonna make me believe that.

[JLM Vending]

you really believe that 90 out of 100 people who buy a vending machine one kind or another with hopes of owning a successful business makes it happen, come on. No industry poll or what ever is gonna make me believe that.

Well out of all the ones who bust there butt, build over the course of some years, do it right, I think probably do achieve some level of success

[mainor5251]

Well out of all the ones who bust there butt, build over the course of some years, do it right, I think probably do achieve some level of success

Its my belief that a lot of people get into vending thinking its a get rich quick deal and bail once they find out it requires a lot of time and work.

[*Jessica*]

She's correct in saying that, mainor. However, that's the vending industry as a whole. Bulk vending only makes up 1% of the vending industry.

Jessica, don't take offense in what I said. I didn't mean for it to sound snitty. A 5 machine 1 location vending route is not really a business though. That's a hobby. Just because you had a great location in Kentucky doesn't mean you will find one like it in Georgia. Hopefully you learned by the excuse the owner gave you. Don't expect a location to produce all the time if you're vending candy. You also will loose locations for no reason at all.

What machines do you have that are different from most of the vendors?

no offense taken

I have ones that fit on the tables. Thats kinda why I want to place more than just one at a restaurant.

Its my belief that a lot of people get into vending thinking its a get rich quick deal and bail once they find out it requires a lot of time and work.

Oh I know its not get rich quick--

If anything I have extreme attention to detail BEFORE even considering a location.

one of the things I like to do to scope out a place is to observe a dinner service there (as a customer) to guage just how busy it is. If I believe it isn't going to make me money, then I won't put the machine there--however if the restaurant is filled to standing room capacity during dinner rush, then I may go in on a different day (such as one weekend night and one weekday night a different week) to see if there's a difference.

Bottom line is, if I believe the location has adequate traffic--then and ONLY then will I go in to try to place my machines.

[mainor5251]

Oh I know its not get rich quick--

Didn't mean you specifically was talking about the statistic

[havending]

Its my belief that a lot of people get into vending thinking its a get rich quick deal and bail once they find out it requires a lot of time and work.

I have never seen any hard numbers proving what % of people make it or don't make it. But if you think about it getting true numbers would be very hard. Remember most people who start be it bulk or full line or what ever vending they choose do it out of their garage with no records what so ever. Most dont get a license or pay taxes on the money. And most way more than 10% fail.

Now let's focus on helping this young lady. Some ideas you may want to try are. Do like the other post say buy a machine or two and let them make a little then buy another 2 or 3 and keep going. I understand that this path seems slow but once you start to double up you will see it getting better for you. Also with the slower start you can take time to self locate. Another option is that if your current income can support you then you could pick up a part time job and use that money to buy machines. I know you were really searching for alternative funding types and not ways to use current resources. but with obamanomics and his giving banks so much power in their lending practices loans are harder to get. He has also made it legal for lenders to charge almost what ever interest they want. Companies like western sky stay away from them. Lastly I would really not do candy but I would stay with some toys. I also have a friend just north of Atlanta not far from you that normally has some great machines for sale. He has a 5000 head business. And often sells some good machines. Handavending@gmail

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