Forums: Discussions for entrepreneurs and small business.

I am a frustrated established business owner trying desperately to keep pace with a competitive market.  

I`m currently sustaining my business expenses with my personal credit cards, and I have been doing so for quite some time.  

I have successfully maxed out each of my personal credit cards.  

Because of this situation, I am trying to get a loan in an effort to pay off all my personal credit cards and then, hopefully, be able to establish a business line of credit.

I believe that by paying off my personal credit card balances I will take the noose of the neck of my business.

With a business line of credit, I will be able to allow my business an opportunity to stand on its own two feet.

What options are available to me in the small business loans area?

I am a frustrated established business owner trying desperately to keep pace with a competitive market. 

I`m currently sustaining my business expenses with my personal credit cards, and I have been doing so for quite some time. 

I have successfully maxed out each of my personal credit cards. 

Because of this situation, I am trying to get a loan in an effort to pay off all my personal credit cards and then, hopefully, be able to establish a business line of credit.

I believe that by paying off my personal credit card balances I will take the noose of the neck of my business.

With a business line of credit, I will be able to allow my business an opportunity to stand on its own two feet.

What options are available to me in the small business loans area?

Ralph4,

Every situation is unique, but generally speaking you should have several avenues available including restructuring your debt.

From your post, however, I infer that the business needs more than $$ since you have been paying its expenses from your personal funds.

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From the looks of it, you may find yourself in the same position in the future, but with more debt. You may want to do brain storming session to figure out where you are losing money, and fix the problem. A few changes in your business plan could help you increase your cash flow. If some changes are not made, you may find yourself trying to pay of the other loan with your credit cards that you paid off.

Both the above advisors make the same point that comes to my mind: why are you running a business at a continuous loss? At what point do you walk away, and consider it a write-off? What`s your exit strategy....or exit point? Conversely, what`s your break-even point, and when did you expect to reach it when you first began this business?

You`ll want to look at SuN`s business startup classes, Angel investors, perhaps check with SCORE in your area.  You obviously need to get expenses in check if you are maxing out credit cards.  I realize that your accounts don`t pay as quickly as the interest on your credit cards, but something has to give before you go under.  Perhaps you can offer a discount for those accounts that pay upon receipt of whatever you do?  Perhaps an upfront deposit for materials of 30% or so needs to be implemented (in case of cancellations) if it applies.
Hope this helps.

Okay, what type of business is this . . . I might have a suggestion. 

My suggestion would be to establish a strong businesss credit score for your company. That way you can get a line of credit without worrying about your personal credit score.

apply for a D&B number right away.....it is a good way to start building your business profile.  you can then get a loan and credit cards only under your business name w.o a personal guarantee.  this is assuming you already have an EIN - which in itself can allow you to have a bank account under the business.

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