New Topic
Post Reply
Follow Topic
Hello All,
Has anyone had any luck finding a lender who is willing to fund a start-up? All the lenders I have spoken with want at least 2 years in business. I understand why, from their perspective, but what about the true start-up? Any suggestions? I have looked at FundingUniverse and the Business Finance Store, but they take so much out of the money funded (The Business Finance Store takes up to 12%).
Thoughts? Thank you
There are all types of business loans. The type you need depends on two things. 1) how much you are seeking and 2) what the funds will be used for.
These are questions that any lender will ask you - each type of loan has their own requirements.
If you want to learn more about the different types - try Business Money Today .com - there you can search for all types of business loans based on the stage of your business, the amount you need and the purpose. They also explain what each is and how to apply.
Good Luck!
Bluekat,
There are lenders that will consider a business with less than two/three years of operating history. There are some SBA programs that will consider new businesses - but their qualifications are stringent and they will require a personal guarantee.
There are a number of ways to bring capital into a business. The optimum one for you will depend upon several factors including your personal preferences, financial strength, the type of business and the amount you are seeking.
That said, we've determined that the "how" you go about seeking capital is far more important to success than the where you look or who you approach.
If you'd like to discuss your specific situation, feel free to contact me directly.
Thanks All!
I have been kicking all the options around for months. I am talking to a few potential angels as well. Just not sure how I want to proceed.
There is a lot of equipment needed and I need to raise a good chunk of money. Life would be easy if I had just stuck to technology! The good news is that I have a backing from almost all of the professional sports teams here, which fits well with both the theme and marketing plans.
Thank you for the advice, I'll do more reading!
You may want to consider getting these sports teams to sponsor you. If there is any way you can rotate their ads or display them simulateously - you can get "pre-ad sales". Those who sponsor will be prominately in some way.
Just a thought. You've got to be creative - but even more importantly, you have to deliver what you say and preferably over and beyond.
I am talking to them for sponsorship. the main issue is that they believe their brand is worth a lot (which it is), so getting any real dollars out of them is tough. the smaller teams and the WNBA have the biggest to gain, but the littles budgets.
This is also a brick and mortor play, so even though there will be advertising, online is not a big draw. Most will be on premise, in our advertising, social media, events and other word of mouth campaigns. Advertising is not what where we lack. ;-)
But I love your thoughts as they are right on target!
I am not sure if the angel I need exists, or at least is out of my circle... They have to have the extra cash buring a hole, but still be young enough to have children younger than 12 to appreciate the concept.
That is why I thought about a loan....
Not knowing how much you need, there are peer lenders that offer competitive rates.
However, it's usually up to $25k per.
You can also check into GoBigNetwork to see what their angels have to offer. The SBA may also have grants for which you may qualify.
Go to grants.gov for a list of government grants and how you can apply for them. However, there are no grants for a for profit business unless you are opening a daycare and then it is a minimal amount.
If you need money, you will need to apply for a loan. To learn where you may find personal help, check Small Business Start-up Loans.
However, I think you'll find there are very few grants available for private individuals. For private grants, you may want to check the Famous Philanthropists’s Foundation Grants for Small Business Owners.
Unfortunately there are not may sources of start-up capital. Most new business owners bootstrap - using personal funds, personal assets as collateral or tap friends and family. There are a few resources (mostly personal loans that can be used for business) but you have to have strong credit and some form of current cash flow.
There are also peer-to-peer loans or micro loans which will fund start ups - but again, strong credit and cash flow.
Other ways are to actually go out and get the business - then with purchase order in hand or invoice - factor those financial assets to secure additional working capital.
Starting a business is not easy - but, if you can find your way around this issue - doing whatever you can to succeed - you have a much better chance of growing your business into that long-term idea you are dreaming about.
We list information and resources on our website related to funding new and small businesses. There is no cost to use our site and as always no obligation - so feel free to look around - you never know, you just might find what you need.
You can try to find lenders which provide special programs for those who are less than 2 years in business. Besides, all depends on the amount of money you need. If you won't succed in this try to apply for usual personal loan instead of business. If your credit score is rather high and you had no problems with your previous creditors, you won't have any troubles in getting personal loan.
Post Reply
