Building a Good Credit Score – Getting the Credit You Need to Get Financing Now!

Are you becoming sick of being one of those people that just cannot get any type of financing because your credit is horrible? Do you want to find a way to get the necessary credit score that it takes to get any financing you can get regardless of what you need? There are ways to learn how building a good credit history is done. Here is what you have to know about credit.

First, when it comes to your FICO score you need to understand what is considered good and what is considered bad. The low scores are usually below 500 and these people will not be able to get any financing other than rent to own and buy here pay here types of deals. The best scores are those above 700 and these people can pretty much finance anything they want to finance.

Second, when you are trying to figure out how building a good credit profile is done you need to understand that it is all about the two different sides of your credit report. There is a positive, which is items you have paid on time and there is a negative, which are debts you have not paid on time or have not paid on in a while. The best thing to know about building a good credit score is that you need more on the positive than on the negative.

Last, if you want to make sure your credit is changed and that you can get the financing you need, then you need to start making the necessary adjustments in your life to deal with your bad debts now. This will have a lasting effect on your credit history and will allow you to begin building a FICO score you can be proud of.

Found Some Gas Stations For Sale? Try Getting SBA Financing NOW!

Financing gas stations and convenience stores has never been at the top of the list for most banks and lending institutions. Now it’s gotten even tougher. Because of recent changes in SBA lending guidelines,obtaining a purchase loan got a lot more difficult.

SBA has been perceived as “B” credit financing for many people which is not accurate. SBA could finance things like working capital and inventory which banks frequently would not do on a conventional basis and generally would do a higher loan to value (LTV) loan than many banks. In reality, it was the banks lending the money and the SBA would guarantee the loan.

Effective June 15, 2008, the SBA will require all sellers to provide an environmental indemnification agreement regardless if the site has ever had an environmental issue or not. Fun, huh? Imagine this… you’re buying a station that is a few years old…it’s in pristine condition… the site has never had an environmental concern… now the SBA wants the seller to sign that they will indemnify in case of leakage, spillage or migration for the entire life of the loan if the State’s LUST fund goes insolvent or if private insurance is not effect by the owner. So, even though YOU had nothing to do with the leakage or spillage, you might be responsible for it! Fun stuff… good times! How many sellers do you think will want to sign off on this? The SBA also will now require a Phase I environmental on business only purchases

Secondly, the SBA no longer wants to have appraisals with an income approach in it. Appraisers are in arms about this because this is contradictory to their own guidelines that they go by. They also want to have a business valuation done by a third party company instead of the income approach, adding time and expense to the transaction.

If this isn’t bad enough, if you’re borrowing part of your down payment from a home equity loan, the SBA will require that if you are married, your spouse will need to work in a job that has nothing to do with your business, to assure that the home equity loan is paid.

If this concerns you, it should. It would appear that the not so veiled message is that the SBA does not want to finance gas stations and convenience stores with fuel anymore. I’d complain to your local representative and Senator to make your feelings known.

With all this having been said, it is imperative that you deal with people that specialize in financing gas stations and convenience stores, who hopefully are aware of financing in this asset class.