Well, it really looks like the weird and obscure are gaining the upper hand in funding related posts here on StartUpNation.com.
Let’s be real, Ryan, you have a financial background that makes it next to impossible for you to get an unsecured credit card, car loan, let alone a personal loan. Lenders who will disregard these facts and lend you the money will probably do so based on ridiculous terms, which could mean that you’re digging the next deep hole for yourself.
I understand that you’re excited about this opportunity but the best thing you can do given the circumstances is wait until your credit is cleaned up.
Having said that, I’m surprised that none of my fellow posters seem to take issue with the fact that you’re estimating your capital requirements at only $25,000. And that is including a 3-month cash reserve? C’mon!
The grocery business is known for notoriously low margins, sizable capital requirements, and intense competition. While the idea of running a discount grocery story seems to be in tune with current economic challenges, the fact that you will need to undersell your competition will (i) translate into even lower margins, and (ii) require a huge turnover to free up any cash or credit resources. Speaking of which, most distributors sell to individual stores based on revolving credit lines, which give them 30, 60 or 90 days to sell the merchandise before they have to pay for it. Knowing that you probably won’t qualify raises the question how do you intend to finance your inventory?
If you are looking for feedback on your business plan, follow “RobertJ’s” and “Deeziner’s” advice and schedule an appointment with your local SBA or Score Office. Although the SBA focuses on the creditor’s ability to repay the loan, since they are a government-backed agency, having a non-conforming credit profile is not sufficient to decline your application.
If you’re still determined to go for it, try partnering with a family member, friend, or colleague who’s willing to be the financial front for your venture.
As far as other suggestions such as OPM, private placement memoranda, and convertible debt offerings are concerned, pursuing any of these avenues will most likely be a waste of the little financial resources that are currently available to you.
I hope this helps.
Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.