The bankruptcy will have an impact on your ability to get a loan - especially if you have no (or very little) collateral to put up. If the past 2 years show a good payment history - that will be a positive.
The first step in determining your "optimum" funding strategy would be to develop a "basic" business plan including a set of basic financial projections.
Thanks for the input. I have no reall credit other than a vehicle loan (10k) that is religiously ontime. I don`t know what my score is of late. I am starting a business plan as we speak. I do have a good picture of how this business will work (the service I will provide, and the vehicle for it). I do have two questions: 1.)
The end result of this company will be 48 contiguous states. Generally speaking, is it better to start locally and grow into that goal or actually jump into selling nationally? BTW, this is a commercial construction business (flooring). There is no infrastrucutre involved except to network sub-contractors in every region that I will be doing business.
I am partnering with my wife in this venture. She is as good a salesman as I and there are advantages in female ownership in being awarded gov`t contracts. Is the any funding available anymore for woman-owned start-ups?
That`s great that you are starting on your plan. Initially, you don`t need to have a 40 page, 4 color plan - just cover the core basics.
As for your 2 questions:
1. Generally it takes less resources to develop a market locally - so that may be a good way to go.
2. There are still some programs around for women owned businesses. You may want to check with your local economic development entity as well as the SBA
Thanks for your insight,as well. I feel that I probably would not get much help from lending instituions right now (I know my personal credit would hurt, not help), but I won`t need 100k startup capital either. I haven`t finished putting the numbers to paper, but I feel that between 30-50k will be ideal. I certainly don`t want to hinder profits with a big note to pay on every month.
On a side note:
I was thinking about the business I am in now. I am a residential flooring contractor, and have been for about 17 years, operating as a schedule C. About 2 years ago, my wife set up a DBA and I registered it with DNB. We NEVER used the name, we never obtained any credit with it. Can I "upgrade" a schedule C to an LLC or c-corp, and would that qualify as a "shelf" corporation?
I can truly sympathize with you as far as the credit or bad credit portion.
I too am in search of capital for my own business. Right now, I am going about things the wrong way, and I am trying to find a resolution that will save my business as well.
As I see, my solution is to identify and acquire available capital.
I`m currently sustaining my business expenses with my personal credit cards, and I have been doing so for quite some time.
Currently, 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.
However, I find that most banks view me as a considerable risk because of my maxed out credit cards, and each attempt I make to acquire a loan is denied.
I am not quite ready to give up on my business. It is all I have.
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.
Sometimes, as a business owners, we are made to believe that a resolution to our financial situation is impossible.
But keep researching J, and your resolution will be identified.
I have heard many say that there is life after bankruptcy.
It`s not easy, but there is life.
Along the lines of raising capital, does having a couple of contracts for my business services help me get a small line of credit or business loan. My personal credit took a hit in the last year and has dropped inot the mid 500s.
But as I have stated I have two current contracts and am expecting a third within the next two weeks. Would a financial institution look favorbaly on them? CAn I use them as leverage to get a L.O.C. of $25,000.