ForumsLoans and Lines of Credit

Is your business already incorporated? Did you get your EIN & DUNS? Have you established a "base camp" such as your corporate office (can be home office) so you could start establishing credit under the business?

The object of my questions is to get you thinking about the business being a separate entity than yourself so you can think of the two as being two leverages you have against the bank.

Its good that you CAN leverage your personal credit history but at the same time personal credit reports will see that as a BAD thing and that may be why the banks are not giving you anything. For example it sounds like your DTI may be high (debt to income ratio) - have you pulled you free credit reports to see if everything is balanced out and reporting correctly?

To me it sounds like you want to work on an SBA loan. You can obviously meet the matching funds requirement and the government can help back/guarantee your loan. Have you contacted the SBA to see what your best option is?

What entails your other fees? Is it just assumed costs forecasted for the entire year? Can you start without requiring the funds up front and keep your day job to sustain the business through startup phase? The big concern is the credit crunch and leveraging credit as your ownly means to float your business. Is your 35k cash or is it a loan against your assets? Perhaps the banks won't loan you any more because you have fully leveraged your assets beyond a DTI that they project as safe.

Get an SBA loan.. sounds like your best bet.

You're not lost. Just sounds like you have lazy banks.

Find banks in your region that are SBA backed and call them up. Try local banks and work from there:

http://www.sba.gov/localresources/index.html

Have detailed business plan 3 year cash flow projection incuding repayment of debt. Any advice on lenders to go to?

Hi Eddie518,

You stated that your estimated costs to get off the ground is 215k. Having started a business rcently, I can tell you that you will need a cushion. There will undoubtedly be additional expenses that will come up during your start-up phase. Fees from utilties, city business license fees, marketing, etc. You'll find that everyone will want a piece of your cash reserve and they could care less about your overall success or dreams.

My advice to you would also to be sure and have enough funds to support you and the business for AT LEAST 1 year. You'll be surprised how fast your cash reserves will shrink if your cash flow projections are not realized.

Check with your franchisor to see if they have any established relations with any banks for SBA loans. If they already have this relationship established, it may make things easier for you.

Eddie518,

I work alot with franchises. You have a few options that are all stated income so you have to worry about financials and collateral for: sba, business credit line or term loan that you chose ther term. email me cory@walkerlender.com
Dont be frustrated sometimes it just comes down to knowing where to go. That is why this forum is great for entrepr...
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Hello,

I think I can help you. I am a Technical Assistance Provider authorized by the government to administer government financing. Contact me and I'll be happy to discuss options for your situation.

Email me at moreheadsconnections@gmail.com and we can exchange contact information.

Warm regards,
TJ Morehead