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$5000 Poor Credit Rating Loan in La Quinta

Our applicant is a small business owner, running a profitable business and trying to expand by adding another crew to his busy landscaping business. He has tried to get a small business loan and not had any success in this area.

He is trying to get a small personal loan, as an alternative, but unfortunately he has a poor credit rating which is contributing to the high interest rates that he is being quoted.

Unfortunately this occurs a lot. Only people or companies with excellent credit ratings are going to be offered the best rates for loans, whether they are personal loans, home equity loans or business loans. Our client did not explain why he has a poor credit rating. However this is really the reason that he is not being offered what he considers to be competitive rates for his loan.

He has two options and this is really a business decision. He can forgo the loan and wait until he has sufficient funds from the business to purchase the additional equipment that he needs. He will lose some potential profit by doing this and he may lose several contracts as well. The other option is to take out the loan, buy the equipment and secure the contracts. The question is for this business owner, is whether they will make sufficient additional profit to pay for the cost of the loan?

Depending on the term he chooses, the loan will cost between $830 to $1370 in interest costs. If he can make substantially more than this between now and when he could self finance, then the answer is obvious. He will have to do some business analysis of the incremental profit he can make and then make his decision.

We want to emphasize that he needs to make sure that he repays the loan on time, meets all of his scheduled payments and be on excellent terms with his lender to avoid another hit on his already poor credit rating. Our client has some homework to do and some decisions to make.


Poor Credit Loan Amount :: $5000

Home Loan Application and Processing Speed (when do you need the funds):: within the next two weeks

Do you currently have a mortgage? :: yes

Bank Name and Branch :: Union Bank of California, La Quinta

What City/Town, State and County do you live in? :: La Quinta

Zip ::92253

What is your employment field? :: Landscaper

Employment Position :: Foreman / owner

When are you paid? (monthly/weekly/biweekly):: biweekly

Your credit rating to be – excellent, fair, or bad? :: poor

How did you find us? :: searching for loans online

How are you paid? (direct deposit/paper check): : paper check

Gross Amount Per Paycheck ::$ 2500

Do you agree to have this information published online, without your PRIVATE information of course? :: sure , just do not mention my companies name

Extra information here please (some detail):: I run a small landscaping business in La Quinta and the cities in the general area. We remove dead palm fronds from palm trees, we cut grass, we trim hedges and we clean up after the Sanata Anna winds blow through and do a lot of damage. We do not look after pools or hot tubs. We also plant flowers and flower beds. Twice a year we remove all of the grass and replant with new grass seed that can deal with the temperatures in the area. We currently have two crews running every day with two trucks and associated equipment. I own the company and also act as foreman for one of the crews and my brother is foreman of the other crew.

We have so much business right now that we could easily keep a third crew going full time. All I need is a small $5000 loan to purchase the equipment for the crew. This includes everything from lawn mowers, rakes, hedge trimmers etc. We already have the truck and are ready to hire the staff, but we need a small loan to get going. I can wait another month to save the $5000 I need, which we will generate from the business, however we have contracts waiting to be signed provided that we can do the work and meet schedules. There is a lot of competition, but we have a very good reputation and are able to gather this extra business now.

Note to Lender :: The problem I am having is getting someone to approve a loan for us. We are a small business and already have one strike against us. No one wants to loan money these days to small business people. On top of that I thought I would take a personal loan and then lend the money to the business, but I am not as smart in my personal life as I am in my business life.

My personal credit rating is poor and as a result I am having difficulty in finding someone who will lend me the money at a reasonable interest rate. They want 10.75% for a personal loan. I thought loan rates were down around 1%, so why are the banks charging so much? With this small loan, I can put five guys to work, who are going to pay taxes, buy goods and contribute to the economy. Instead they try to prevent small business people from making a go of it. This is very frustrating and I am sorry for venting. Do you think that you can assist us in being approved for this small personal loan at a competitive interest rate? i.e. much less than 10.75%

Category: Home Mortgage Loan APR 10.75% APR 10.75% APR 10.75%
Loan Principal $5000 $5000 $5000
Payment Schedule Monthly Monthly Monthly
Length of Term 3 4 5
Amount to be paid $5828.49 $6097.19 $6365.89
Total interest paid $828.49 $1097.19 $1365.89
Paid per installment $159.68 $125.28 $104.64