Recycler Newsletter – March 2015
Written and published by Ron Sturgeon. autosalvageconsultant.com, email to rons@autosalvageconsultant.com. To register for future free issues, visit http://www.autosalvageconsultant.com. Don’t forget to watch for our management articles monthly in Recyclers Power Source Magazine, or posted at our web site.
Tools for Success – Keep Perfect Credit
The first article in this series listed several tacticsto increase your business success. I will devote the rest of the series to taking a closer look at each of those tactics.
When I got in business, I had no money. I borrowed nearly every penny to start my first business. I became pretty darn good at borrowing money. I was one of the first auto recyclers to borrow large sums to buy cars, a feat that many people in the business believed to be impossible.
The key to getting my banker to say yes was cultivating a relationship. If you want to know step-by-step how to build a solid relationship that will let you get the capital you need, buy my book, Getting to Yes with Your Banker, on Amazon.
For now, let me share a little about the importance of having good credit. To a banker, there is no substitute for a good credit score.
How do you keep good credit?
One of the crucial steps is to protect yourself from identity theft and credit fraud. Make sure you have a watch on your credit report. All the credit bureaus offer them. Credit monitoring service is not expensive. It costs about $14 per month and is an absolute must. Having a watch on your file means that the bureaus will alert you whenever anyone accesses your credit file and whenever your credit score changes.
You should also check the accuracy of the information in your credit file. Order a tri-bureau (one that covers all three credit bureaus) report with scores. Be proactive in removing any inaccurate, derogatory information.
720 is a Magic Number
Is your score at least a 720? If it isn’t, you need to think about how to get it there. A 720 is the current cut off for prime loans. If your score is at least a 720, your past credit history will not be the reason your loan application is turned down.
Once you know where you stand and have a program to keep an eye on your credit reports, you need to be diligent about keeping promises to your creditors. If you can’t pay a credit card in full, pay the minimum due and PAY IT ON TIME. Yes, it was only ten dollars, but it’s the promise you kept, not the amount you paid, that matters.
My credit file has records dating back to 1979.It’s perfect. Not one late,ever. That’s the sort of reassurance bankers like. They like a sterling credit report much better than a story. Bankers don’t have time for stories. They care about results. Be known as the client who moves fast, handles his business, and stays in front of issues.My bankers love me because I’m credible, entertaining, very candid. I call it like it is.They can count on my results.
Don’t Beat up Your Banker
The other reason that bankers love me is that they make a lot of money on me. When I come to them for money, I have a very profitable use for it, and I know that a quarter or a half point won’t make any difference to the quality of my life or my business.
I act accordingly.
I don’t try to beat every banker out of every quarter point. I want them to point at me when I come in the lobby and say, “There goes one of our best customers. We make a lot of money on him.”
If you do your job right and make a strong application for a loan (one that has solid answers to the what, why, how, etc.), banks will likely want your business enough to give you a competitive rate. If they don’t, ask them to review the rate.
The Value of Potential Competition
However, think beyond the one transaction. Think long term. Build a relationship with your bankers. Notice I said bankers. I always have two. Having two lets the banker who you are talking to know that he or she has potential competition.
A little potential competition is good for the heart and good for the relationship. Stay tuned for more on good credit and how to keep it in next month’s newsletter article.
URG 2015 Training Conference Set for April 30 to May 2, 2015
Hard to believe this is the 20th anniversary of URG. Find out more about the auto recycling conference that will be in Englewood, CO, this year here.
Want to Sell More Parts Online? Free Website Evaluation
Want more sales from your website? More leads, better prospects, more parts orders? Some businesses pay SEO experts thousands to help get found by parts buyers. For only $500, you can have a white board meeting with Ron Sturgeon and learn SEO secrets, what Google looks at, how Google grades your website, and what it takes to get your website on the first page for high-dollar used parts searches. How much more inventory could you be selling every day online? E-mail rons@autosalvageconsultant.com and put website review in the subject line for a free report on your site.
“Whatever the mind of man can conceive and believe, it can achieve. Thoughts are things! And powerful things at that, when mixed with definiteness of purpose, and burning desire, can be translated into riches.”
~ Napoleon Hill
AutoSalvageconsultant.com was formed in 2001 to help recyclers improve their businesses. With over 50 years of experience in 3 staff members, the group is THE definitive source for recyclers’ management and training needs. Mike Gibson and Tammy Sturgeon joined the team in 2003, and bring a wealth of experience to the team, plus more resources, as there have been more requests for help than Ron could meet. The founder, Ron Sturgeon is past owner of AAA Small Car World. In 1999, he sold his six Texas locations, with 140 employees, to Greenleaf. In 2001, he founded North Texas Insurance Auction, which he sold to Copart in 2002. In 2002, his book “Salvaging Millions” was published to help small business owners achieve significant success, and was recently reprinted and published in Chinese. He also manages his real estate holdings and investments. You can learn more about how to help your business at www.autosalvageconsultant.com.
