The business owners usually look into the funding that is received from venture capital firms. However, even before you join hands with venture capital investors, you must ensure that their welfare is safeguarded regarding their investment. When venture capitalists invest in your firm, they become more than mere creditors, they turn into part owners and this is the reason why they need to see the long-term revenue options of the company.
If this thing is truly something realistically advantageous to the people with sleep apnea, and you have heard positive feedback about it, then I would think you don't want to give up the fight to help people with this need. If I was in your shoes, and I was able to go for it, I would talk to a relative, or to a friend whom you trust, and use them to get the loan. Pitch to them the idea/ product, and see if they will risk their credit to go with you to pitch a lender. Yes they are now partner, yes they have the possibility of screwing you over, but if that risk is worth it. I will say that getting a lender with bad credit is reeeeeeealy hard. When you are that desperate though one thing you risk is that a lender will take more interest than you would want to give up.
This is just my opinion, but take on a trustworthy partner with good credit. But be sure it's worthy so you don't mess up a friends credit. That can lead to really bad blood.
Even with good credit, it's almost impossible to obtain traditional financing for your start-up business.
If you've ever watched "Shark Tank", lenders usually only want to lend to people who don't necessarily need it. They want to see a certain level of success and sales before they will risk their money.
Your best bet is to first approach people in your network. (Family, friends, etc). You could also brush up on "crowd sourcing" like KickStarter.com
Do you have a web site for your product yet?
---Owner of a online medical supply store: Rehabmart.com
Startup financing is nearly impossible even with good credit. There are alternative sources as well. LOC thru finance brokers. yes, costly, but how confident are you with your idea? is it proven? Tested? Feedback?
I am in the middle of opening up a large bar and grill, first time opening one up. Got the financing I needed using many methods. I didn't quit because I want to see this thru.
Let me know if you need options and I can send some your way. If you believe and have a great product, don't let this stop you.
First the "bad" news. If you are trying to get a loan from "traditional" sources with poor credit- you will continue to be frustrated.
The "good" news is - there are a number of ways to bring capital into a business situation. The first key is to chose the one that best fits your situation.
If you want to discuss your situation, feel free to drop me a PM or contact me directly.
Obtaining funding in todays economy is very hard. The only funding I have seen happening are start-ups which are functioning, have some level of revenue happening and are have figured out the basic fundamentals of their business.
It is next to impossible to get funding today on an idea or simple business plan. The markets are not tolerating risk - they only want to bet on sure things.
Its tough out there today....
There really is no funding for someone like me to receive start-up funding with poor credit, is there?
I have invented my own product specifically for people with sleep apnea who use a cpap breathing machine. I have an excellent business plan that was reviewed by SCORE and the local SBDC. I have sample products. I cannot find funding because of my prior credit. My poor credit was because of my wife's business failure but it still haunts me.
Nobody like meis going to get funding in reality, is there? I have tried everywhere. It always come backs to credit.
Any ideas? I appreciate any thoughts!