Forums: Discussions for entrepreneurs and small business.

Ok...

I am a veteran of the US Army, African-American and a woman.  I find it extremely heartbreaking when I`m turned down for a 25K- 50K loan for a small size Southern Cooking buffet here in Atlanta.  Although, I can understand, my credit scores are crap!  I find myself saying "If I knew back then, what I know now, I would have never....."  Currently, I make really good money, am paying my bills on time and am the best chef in the area (I cater weddings, business meetings, etc. with lots of referrals) and I can`t seem to find any funding for a location that is perfect for me, and will bring in plenty of people for my down home cooking!  I tried Prosper, didn`t get funded.  I tried SBA, credit scores weren`t good enough.  I figured since I have learned my lesson about credit, a minority veteran woman, someone would take pity on me and give me a break.  Anyone know of ANY agencies that help people like me succeed?  I`m also in self credit repair, I want my credit report looking good!  Plus, I have the best menu in town!

Some suggestions and a request.

Request first.

Get me your ID on Prosper so I can see the loan proposal and the bidding
history.

Suggestions.

Work on the credit report and have all mistakes removed. Go slow on how
you deal with the bad ideas. If they have gone to collection you can
negotiate a settlement which can include having the negative item remove
completely from the report if you agree to pay. You can agree to pay the
item for less than is owed as many times an item in collection was sold at
a discount.

Continue with the job. When trying for an SBA loan having stable
employment is a plus. The job will likely get in the way of the business
but trade-offs have to be made in the early stages.

Work on the business plan and the pitch. Follow the advice on SuN.

Once you have the plan and the pitch you might want to host dinners for
possible investors. Get the word out and let people see the product. Real
estate investors will hold private functions with a small group of possible
investors. You have a natural showcase. Be careful to keep it to people
you know so that you do not break any rule concerning fund raising for
an investment. Your present clients could be a target. More the people
who are interested in your catering service.

Check with the Chamber of Commerce to see what advice they have for
local retail establishments. There could be community programs or
specific lenders with specialized programs.

Part of the struggle is the process by which investors know you are
serious. The wimps bail so those who keep on plugging become good
candidates for investment.

See if there are any specific food fairs or other events where you can
reach a lot of people. Anything to drum up business for the catering
service. You can also use the venues to improve your menu so you know
what will sell the best.

Note that in some communities restaurants have the highest failure rate
of any business. I knew a guy who worked in sales for a supply company.
He said they offered no credit as their customers were always going out
of business. Too many people setting up because they liked to cook but
they could not run a business. If that is the background conversation it
will be hard to find investors as they will know that the risks are very
high. You need to change the odds. To make your venture a safer
investment.

Hi John,

Thanks for the good advice!!  I don`t have the listing for Prosper.  When I tried to get funding, it was for something different.  But I will be creating a listing this weekend!!  My intentions are to pay off the collections next month, there are currently 4 of them that are easy to pay.  I am continuing with my current position...I have been with them for 8 years, so I`m very stable, thank goodness.  To host dinners for investors, where do I find them??

Again, thank you so much for your advice.  I will have that proposal this weekend!  I`m also using Business Plan Pro 2007 to expand on my business plan, it`s almost complete.