Forums: Discussions for entrepreneurs and small business.

Greetings,
I would like to risk be blunt to the point, even on my first post.  Generally, I`m a happy go lucky guy filled with excitement about my new venture and energized by the frightening challenges of new business ownership.  However, after slogging my way through researching and launching my business (which was tough and gratifying) and developing my initial product (which is a wonderful challenge coming to fruition faster than anticipated) and paying for my first advertising (yes!  My product in print!) ... I have hit an uncomfortable pot hole in the road.  To this point I have managed to pay for every expense out of pocket; I have a very good job, very few expenses and very good credit  ... but no real collateral.

The hunt for money (and, at only $30,000, it is a truly modest sum for a business) has been an uphill battle.  I am doing well at the moment, but I am coming off of almost two years of unemployment after having been laid off at a law firm and then working a retail job that paid me $100 LESS a month than unemployment!  I started looking for bank loans but, without collateral, there really wasn`t an option.  Some banks would not speak to me unless I was seeking half a million at the least.  (Have you seen those commercials with the small business owner being scraped off the banker`s shoe?  Bingo.)  But lately I`ve run into only three obstacles in the private organization sector:

1) I`m not a woman

2) I`m not a minority

3) I`m not flat broke

I have been turned aside 38 times in the past two months based on these factors alone.  One time I was denied application because I`m 35 years old... (only 30 and under need apply).

I have done my due diligence in founding my business and seeking council at every step.  I have put in my hours and my money.  I am not seeking charity.  All I want is an opportunity to take my shot.  If my product falls flat, I can repay a loan at a rate of $1,500 a month.  I understand there are many risks to the lender.  I don`t want a loan shark.  I don`t want to give away the rights to my fledgling company or my intellectual property.

I just want my chance.

I`ve heard of Prosper.com and I admit it looks intriguing, though I will need to come up with another $5,000 to make sure I have some breathing room.

I am open to any suggestions at this point... my advertising touts Spring `07.  Can anyone here help me to keep my word?

Thank you very much for your time and expertise.

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Gregory S. Hancock (on-tray-pan-oor)

Hi Relentless

I have an option for you to get up to 200,000 of money you can use...it`s not free money, however since you have good credit it will be very easy to get. It will take a couple of months to get, but it is definitely worth it. Let me know if you are interested.

Heather

 

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www.Teleseminars.com For Sale!

If you have a reasonable credit history -can afford $1500 per month payments and are willing to sign a personal guarantee - you should be able to borrow $35-40,000 fairly readily.

Are you saying that 38 "viable" lenders have turned you down in the past 2 months - and given you one of the 3 reasons you cite in your message?

 

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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

If you borrow this money, you must be prepared to start paying it back farely quick. You could try creative methods to raise the other $5000. It will take a little work, and some ambitions. I think Prosper.com is a great company, but make sure you read their contract carefully.

Thanks for your prompt replies... I`ll try to respond in kind!

Heather; of course i`m pretty skeptical at this point in the game, but I`m not close minded.  If you would like to email me with some options, I will definitely drop them on my advisor`s desk and we`ll discuss them.

Robert; of the 38 lenders, 11 have been banks (local and national in size) and the remainder were organizations.  Most would not let me apply, appologizing nicely and quoting their charters did not service "gentlemen in your position."  They then would suggest another group or two who seemed to have the same charter.  Though it would seem  that someone begging to pay $1,500 monthly with a very decent credit score could borrow easily, remember also that I have no real assets for collateral.  The bankers I spoke to or sat down with all cited that they could not lend me more than two months` wages for a business line of credit.  Ironically, I doubt the same banks would have any trouble offering me a $30,000 debt consolodation loan if I had three maxed out $10,000 credit cards.  (which I have reluctantly considered).

RaiseCapital01; I haven`r yet read through all of the fine print on Prosper, and was going to have my advisor take a peek at it this week.  I figured, though, that I would have to begin repaying the loan the very next month, so timing would be important so I could get the most benifit out of the loan... my production run would begin February for delivery by late April, so I would actually want to qualify for the loan in January (wouldn`t it be nice if we could time it to the day?)


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Gregory S. Hancock (on-tray-pan-oor)

Heather, I`d like to have more info on the not-free money available.
Thanks, SG

Relentless...any updates to your situation???

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<A HREF="http://www.AuditAuctions.com">Get ISO Certified</A>

Yes, actually.  I posted on Prosper after all... my loan is listing #69668.  I am asking for $25,000 at 17.75%  Currently I`m funded to 15% of my goal.

Thank you for inquiring, by the way.  :)


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Gregory S. Hancock (on-tray-pan-oor)

@relentless: Have you had any problems after you took the loan or did it all went smoothly?