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Re: Loan Options

TJMorehead — Mon, 17 Mar 2008 08:13:44 GMT

Hello,

It doesn't look like your question has been answered. I'd be happy to speak with you more about your situation. Feel feel free to email me at moreheadsconnections@gmail.com we can exchange contact info from there.

Look forward to speaking with you,
TJ Morehead

Re: Loan Options

BDS INC — Wed, 10 Oct 2007 15:16:49 GMT

Comptank,

In general most banks will expect you to vest at least 10-15% out of pocket and if I were you, I'd speak to your individual banker about whether Angel Funds are acceptable.

But it sounds like you have a solid business plan in a growth market, so if you can come up with that 10-15% you should be able to find financing.

Loan Options

Comptank — Wed, 10 Oct 2007 15:06:36 GMT

I am currently pursuing a business that will manufacturer products in both China and the US. The business is expected to achieve annual revenue in year 5 of $15-20M. I have significant interest to the point that I will enter the business with firm purchase orders for the products from major distribution. I will need approximately $3.5-4M in capital over the next 3 years to fully realize the business opportunity. Of that amount I would expect that $2.0 would be upfront cash requirements, $500K in start-up line of credit and the remaining will come from ongoing cashflow from the business.

The strengths of this business are the established market, a high committed interest from customers, I have started (3) similar and successful "Greenfield" manufacturing plants for other companies over the past 7 years and I have some new technology that will lower the material cost, require less labor content and require less capital than similar operations.

My (2) questions....how much cash as a percentage of total funds borrowed would I need in general to approach a bank and get financing for this business? And...if that cash is from "Angle Funds" is that acceptable to a bank?

Thanks
CompTank