Forums: Discussions for entrepreneurs and small business.

Unfortunately, no, lenders don't give loans specifically for marketing/advertising.

And going back to your original post, without excellent credit and personal assets, you will not even be considered for an SBA loan. SBA loans require 30% of your cash needs coming directly from you. You will also need to show proof of previous applicable experience within your chosen industry (preferably managerial). And you will need to sign off on a personal guarantee.

The personal guarantee will be required from most vendors too.

While it's great to plan ahead and think big, it seems to me you're putting the cart before the horse. You start off saying you have formed an LLC then you say you need to set up the LLC. Why do you even need an LLC for an online web business? (That's a whole other discussion.)

You shouldn't need major funding for what you have in mind with your web business. First get that business off the ground (the website), then see if it's even feasible to grow it to the next level. First things first.

 

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Sylvia Freelance Business Plan Writer

I've learned the hard way, wasting about two years, trying to get money the quick and effortless way. There is none. You need equity - between 20-30% depending on the lender. You need collateral - even my current lender demands 100% of the funds be collateralized, and it's a nonprofit dedicated to a specific niche my business falls in. You need good personal credit. You need to personally guarantee the loan in the event you fail - lenders don't let corporate shields protect you from repaying their money.

There's no easy way. I tried. Now I've raised my equity, secured collateral, and am applying for a loan the lender-preferred, safe (for the lender) old fashioned way. In my case, I'm asking for 19,000 and putting 8,000 of my own money on the table - not counting over 1,000 in out of pocket contributions I've purchased already, like the licenses and such. My loan is going for physical inventory and merchandise, which my lender assured me can be counted as collateral.

Even with all of that, you'll still need a very convincing business plan with financial predictions for the next 3-5 years, break even analysis, etc. And even then, it's an uphill battle. The less you ask for, the better your odds. In my case, I get an expedited processing with only three reviewers, rather than the whole panel, because my loan is less than 20,000. One of the reviewers essentially runs the place, and has been helping me every step of the way. Knowing your lender can make a big difference.

Hope I helped.

The longest and hardest way to fund a new business is the quick and easy way.

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Making limitless possibilities much more limited.

Glad to hear from someone who has been in the trenches, i.e., "been there, tried that." In today's business environment, there is no easy shortcut.

Good luck.