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In Virginia, in order to get a state contractors license you need to show proof of financial stability, experience and insurance. How do people get "stiffed" for no reason if they have a contract with the GC? Never Ever do any work for ANYONE without a written contract. (check state laws) Just food for thought.

Someone young and looking to grow/start a business. The first place to go is a small local bank, build a relationship with them and get a small line of credit, even if it's just a thousand to start out.

Look for "investors". I (a GC) helped out a handful of startups, lent them money, paid them before they did any work (a big no-no is my line of work) If you pay them back quickly, they may be more inclined to lend you more when the time comes. I've even let one new sub buy materials on my accounts and the materials weren't even for my job. He sometimes paid his debt in labor.

Work to build an account with small local suppliers. Again start off with a credit max of say $500.00. Every supplier you apply credit for will check other suppliers to see if you pay the bills on time. Most don't check to see what the amount of money is involved. They just want to know if you pay on time. They check to see if you have a good relationship with the the bank. As far as I know they have no idea how much money you have, just that you do business with a bank and they have you account number should they ever need to collect through the courts.

The Small Business Administration (SBA) used to have programs for new business that needed small amounts of cash. The are a major PITA to deal with but may be worth looking into. (SBA loans are often times processed through local banks)

Best of luck because there is some amount of luck required for success.
 

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Discussion Starter · #42 ·
I had a sub one time who wanted to start to pay for more materials on his own. He was in a similar situation to yours with no credit. He found a credit card that you put money into to start, and after you use the balance you refill it. After about 6 months the kid had better a better credit score than most of us and about a year later he was approved for a mortgage and bought his first house. Wish I knew what type of card that was, I’m sure someone else on this forum knows ;)


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Thank you for thr reply
, that is actually the first card I got earlier this month, the secured card. Sounds like he made out well... hoping for the same.
 

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Discussion Starter · #43 ·
In Virginia, in order to get a state contractors license you need to show proof of financial stability, experience and insurance. How do people get "stiffed" for no reason if they have a contract with the GC? Never Ever do any work for ANYONE without a written contract. (check state laws) Just food for thought.

Someone young and looking to grow/start a business. The first place to go is a small local bank, build a relationship with them and get a small line of credit, even if it's just a thousand to start out.

Look for "investors". I (a GC) helped out a handful of startups, lent them money, paid them before they did any work (a big no-no is my line of work) If you pay them back quickly, they may be more inclined to lend you more when the time comes. I've even let one new sub buy materials on my accounts and the materials weren't even for my job. He sometimes paid his debt in labor.

Work to build an account with small local suppliers. Again start off with a credit max of say $500.00. Every supplier you apply credit for will check other suppliers to see if you pay the bills on time. Most don't check to see what the amount of money is involved. They just want to know if you pay on time. They check to see if you have a good relationship with the the bank. As far as I know they have no idea how much money you have, just that you do business with a bank and they have you account number should they ever need to collect through the courts.

The Small Business Administration (SBA) used to have programs for new business that needed small amounts of cash. The are a major PITA to deal with but may be worth looking into. (SBA loans are often times processed through local banks)

Best of luck because there is some amount of luck required for success.
In Virginia, in order to get a state contractors license you need to show proof of financial stability, experience and insurance. How do people get "stiffed" for no reason if they have a contract with the GC? Never Ever do any work for ANYONE without a written contract. (check state laws) Just food for thought.

Someone young and looking to grow/start a business. The first place to go is a small local bank, build a relationship with them and get a small line of credit, even if it's just a thousand to start out.

Look for "investors". I (a GC) helped out a handful of startups, lent them money, paid them before they did any work (a big no-no is my line of work) If you pay them back quickly, they may be more inclined to lend you more when the time comes. I've even let one new sub buy materials on my accounts and the materials weren't even for my job. He sometimes paid his debt in labor.

Work to build an account with small local suppliers. Again start off with a credit max of say $500.00. Every supplier you apply credit for will check other suppliers to see if you pay the bills on time. Most don't check to see what the amount of money is involved. They just want to know if you pay on time. They check to see if you have a good relationship with the the bank. As far as I know they have no idea how much money you have, just that you do business with a bank and they have you account number should they ever need to collect through the courts.

The Small Business Administration (SBA) used to have programs for new business that needed small amounts of cash. The are a major PITA to deal with but may be worth looking into. (SBA loans are often times processed through local banks)

Best of luck because there is some amount of luck required for success.
 

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Discussion Starter · #44 ·
In Virginia, in order to get a state contractors license you need to show proof of financial stability, experience and insurance. How do people get "stiffed" for no reason if they have a contract with the GC? Never Ever do any work for ANYONE without a written contract. (check state laws) Just food for thought.

Someone young and looking to grow/start a business. The first place to go is a small local bank, build a relationship with them and get a small line of credit, even if it's just a thousand to start out.

Look for "investors". I (a GC) helped out a handful of startups, lent them money, paid them before they did any work (a big no-no is my line of work) If you pay them back quickly, they may be more inclined to lend you more when the time comes. I've even let one new sub buy materials on my accounts and the materials weren't even for my job. He sometimes paid his debt in labor.

Work to build an account with small local suppliers. Again start off with a credit max of say $500.00. Every supplier you apply credit for will check other suppliers to see if you pay the bills on time. Most don't check to see what the amount of money is involved. They just want to know if you pay on time. They check to see if you have a good relationship with the the bank. As far as I know they have no idea how much money you have, just that you do business with a bank and they have you account number should they ever need to collect through the courts.

The Small Business Administration (SBA) used to have programs for new business that needed small amounts of cash. The are a major PITA to deal with but may be worth looking into. (SBA loans are often times processed through local banks)

Best of luck because there is some amount of luck required for success.
Thank you for all this info. I will look into the SBA for sure, have heard about these type of programs.
 

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if your buying materials the GC should be giving you a deposit or you should be demanding a deposit of 25% - 50% of the total job cost
if your just suppling labor then prolly not
what is your goal? where do you want to be in five years? ten years?
make goals set them reach them
when I started out I did all cash business no credit didn't want to mess with credit hated credit thought it was evil
it worked out for years when I was a subcontractor pay cash for everything it was comfortable and easy
then I thought I was real smart and became a general
these days I can rack up at least 50k in debt a month, its mind blowing to say the least I don't worry about owing anyone money it's part of my job, just an assumed risk
start small like others have said use a $500 credit limit credit card, use a line of credit at supply house that is small, my lumber yard gave me a $300.00 line of credit twenty years ago, today it's $30k and I can run it up higher if I want, it sounds ugly but pay a fee for the credit card, if it's a $40.00 a year fee for the credit card do it, in a few years you will move up the ladder and end up getting points and they will be begging for your business, its the cost of doing business, seriously, rack those dollars and pay it off every month
credit is sketch when I start to think about it 45k in credit cards 20k bank line of credit 35k in supply house credit but that's what it takes
 
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