Has anyone used this company?

[witbos]

www.primedloans.com

We get an instagram ad for this company pretty often. It seems fine, and the paperwork is regular. But the website has spelling mistakes and other things that seemed odd to me so I haven't pressed "send" on the application.

We are located in CANADA. We have a revenue of about $160k+ but we run through cash. We're a young business (4 years) so finding liquid to just spend on things like a new dryer is hard for us to find.

As an incorporated small business we're looking for a small loan ($10-15k). This is the only company other than the bank (who denied us) that has an interest rate below 22%.

Vault has declined us as well, regardless of perfect payment history for 3 full $5000 terms, and thinking capital offered us $10k at 42%.

I understand it's going to be a high-interest loan, but is there anyone on here that maybe has a suggestion for a loan that is 8, even 12%?

We can't go through the bank because my personal credit score is not good enough to guarantee, and we've only been an incorporated business for 2 years so the shop doesn't have its own credit yet.

 

[mombowlin]

@witbos A financial sector company that can’t be bothered to hire a professional copywriter or spell check their website? That’s a big no from me.

 

[witbos]

@mombowlin Do you have a better suggestion?

 

[witbos]

The other thing is that it is a company out of Quebec, playing devils advocate - it could be because of the french translation from google?

 

[mombowlin]

@witbos The address goes to a business center where maybe they have an office they rent by the month or maybe they just have a virtual mailbox. This is likely just some guy who is a broker or a scammer. Feel free to find out yourself.

 

[witbos]

@mombowlin Yeah, that's why I came here.

The bank won't give me a business credit card either I applied last week for one and was declined haha. I also applied for a personal card on 3 seperate occasions with no luck in the past year too.

Fed up lmao

 

[mombowlin]

@witbos I’m sorry, I know that you’re in a rough spot financially. Believe me when I say that poor credit is when you need to get MORE conservative with your financial decision, not less. You can’t put your hands on less than 10% of your revenue. That means your cash flow has a major problem. Loans are not the solution; cost cutting and focusing your energies in the higher profit margin areas of the business are.

 

[witbos]

@mombowlin We just went through a 2 year pandemic with no government help at all. Doing 55% of our revenue. Thankfully on the back to our regular profits now - but that just sort of started.

We’re starving for liquid cash. Our bills are paid and so is my salary. But we’re kinda stuck with no capital to reinvest.

 

[faithfairy777]

@witbos The salary you take is the capital/profit you have to reinvest.

 

[witbos]

@faithfairy777 So I should just... not be paid?

Not like rent is free, my dude.

 

[faithfairy777]

@witbos Bootstrapping business growth is no easy thing. But it is the mindset you should get into. It's likely going to be easier to cut back on personal expenses and use the saving to fund the business growth, then it will be to get a loan.

Further, if you get a loan today you'll need to make a payment next month. And as a break even business (assumption) how are you going to make the loan payment next month without cutting back on the salary you take?

 

[mombowlin]

@witbos $10-15k is credit card territory. Or someone can put an asset they own up for collateral. Or ask around local businesses which loan brokers they recommend.

 

[613jono]

@witbos looks scammy to me as well. But while trying to find out more, i discovered this company in Toronto with over 3k good reviews on google https://www.easyfinancial.com

 

[gingerberry]

@613jono easy is skeezy.

 

[gingerberry]

@witbos What kind of business? Hairsalon?

 

[witbos]

@gingerberry Print shop!

 

[gingerberry]

@witbos Sorry read dryer and immediately thought hair. Your financial burdens will kill you if you proceed down this route. Perhaps you should print and print broker stuff. If their are thing that you can’t do efficiently atm then use trade printers. I did a lot of trade work across the printing world and it ended up being cheaper for me to print at place 1, runny cutting and binding at another.

Perhaps that can let you make the margins and save some cash up for machine purchases/leases.

 

[malou]

@witbos If you want to keep your current business open you’re going to need another job to fund it. Your revenue in that industry is way too low to attract any kind of loan. I would suggest you and any other owners get a part time job until you can improve your sales numbers.

 

[witbos]

@malou This comment is kinda crazy. $160,000/yr business that runs as a 100% debt free corporation isn't enough to get a loan? lmao. They give out loans to people with no sales yet.