how do you guys prove income

[TKK]

I used to get loans that same day my credit is 718 and very strong. How can.you get a business loan to expand? So far my full business was started with nothing but my own cash. But say I find a great route and I dont have the available cash to buy how do you guys get loans? Even.yet business loans? This is my first time that im.going to do.income tax and have no clue how that will be as I used to do turbo tax w regular w2s and expenses

By income tax I mean Vending. Ive only been.doing it for a year and reported the last 3 quarters

[AZVendor]

Basically, unless you have a very solid, long term relationship with a bank and, specifically, a branch manager who will go to bat for you, you don't stand much of a chance borrowing anything.  Zero chance if you don't have iron-clad financial books, a couple or more years of documented cash flow, account proformas and a business plan.  Vending is a cash business and banks don't like those.  They prefer businesses with receivables that can be attached if you fall behind in your payments.  Vending machines themselves are not considered good collateral for a loan, because they are too mobile and impossible to track with liens.  The banks also don't have any clue how to value vending machines or vending businesses.  If you do find a bank willing to loan something, you will have to put up some more acceptable collateral like a house or other real property or borrow against some bank holdings or a 401K, annuity, CD's, etc. 

 

This is why most vendors use their credit cards, home equity loans, personal signature loans, etc.  All of those lines of credit don't care what the money is for because you already hold the line of credit or property is already securing it. 

 

Another common way to expand is by purchasing new equipment that can be financed through the manufacurer's finance arm as in the way USI does it, or through a third party lender to vending such as Firestone Finance.  To use Firestone, you have to purchase your machines from a distributor that has the Firestone relationship. 

 

Your best bet is to grow through the use of your own cash flow.  Save your profits and build a fund that can be used to purchase opportunities that come along.  You might need to cool it for awhile while you save the cash or just plan on growing very slowly.  The best growth is with no debt.  You might also find sellers willing to accept a meaningful down payment and then carry the balance for a year or two.

[moondog]

I used to get loans that same day my credit is 718 and very strong. How can.you get a business loan to expand? So far my full business was started with nothing but my own cash. But say I find a great route and I dont have the available cash to buy how do you guys get loans? Even.yet business loans? This is my first time that im.going to do.income tax and have no clue how that will be as I used to do turbo tax w regular w2s and expenses

By income tax I mean Vending. Ive only been.doing it for a year and reported the last 3 quarters

 

Regarding the income taxes, download a copy of the Schedule C Federal Form and this will give you a format for your allowable expenses (I'm assuming you're a sole proprietor).  Most state forms follow the Schedule C and some states even allow you to make a copy of the federal form.

 

As for the loan, vending is considered high risk and no bank will touch it without some heavy collateral.  Seller financing is the best way to approach buying a large route.

[havending]

File taxes and get an EIN and build your business credit on that. It's like starting fresh at 18 again. You can build the credit fast with secured business loans and secured business credit cards. The notion that banks won't lend to operators is bull. How do think small companies get big?