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I need help finding startup funding for franchise

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AceMan

posts: 3

Feb 20, 2009 9:19 PM ET Quote Report Abuse

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My wife and I are planning on opening an Ace Hardware store. We have been approved for the SBA loan, but we are having problems coming up with the $150,000 capital upfront to first put into the project.

We have great credit and the proforma and shows the business will be very successful, but I just don`t have equity in my home and I don`t want to touch my 401K right now. The lease for the location is all worked out (at a great rate!) and they are just waiting for us to come up with this upfront money. I also have a successful career and will be keeping it, my wife will be managing the store. So we are not dependant on the income from the business at all.

So any ideas of how to get a loan for this money would be greatly appreciated!

mfackrell

posts: 227

Feb 21, 2009 10:32 AM ET Quote Report Abuse

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I don`t mean to be obtuse, but if you are not willing to put your own money on the line for this deal; why would anyone else?

robertj

posts: 1461

Feb 21, 2009 11:09 AM ET Quote Report Abuse

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Aceman,

Having a great rate on a loan is nice, but since they want $150K upfront - it may not be your optimum solution.

However, to determine what options are available and which would be the optimum for you - I`d need more information.

Send me a PM or contact me directly using robert@bizgrowthmasters.com if you want to discuss your specific situation.

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

AceMan

posts: 3

Feb 21, 2009 11:24 AM ET Quote Report Abuse

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Mfackrell-

I am putting in $50,000 of my own money, but that really wasn`t the question...

mfackrell

posts: 227

Feb 21, 2009 12:37 PM ET Quote Report Abuse

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I was unaware of that.

If you have 1/3 of the cash, you should be able to get a loan from a bank.

What sort of collateral will you have?

Does the $150K constitute all of the startup costs?

sabeier

posts: 6

Feb 24, 2009 11:24 PM ET Quote Report Abuse

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I see you have a 401K, and understand that you don;t want to touch it, but....why would you not want to borrow from your 401K to start your business. The business would be paying you back with interest. The smartest thing you can do is borrow fom yourself and have the company pay you back with interest. Why would you want to borrow from someone else and pay them back with interest????

Just my 2 cents....everyone has to do what they feel most comfortable with.

Good Luck....

banzaibert

posts: 19

Mar 04, 2009 11:01 PM ET Quote Report Abuse

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Just my 2 cents....everyone has to do what they feel most comfortable with.

Good Luck....

I agree with sabeier! And I do that all the time... I usually borrow from myself. At least if I owe somebody money, it would be me and not somebody else who would give me a hard time with interest and all that.

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