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If your proposed franchise is on The Franchise Registry (www.franchiseregistry.com), then it's already on the approved list of the SBA which should make your life a lot easier when pursuing an SBA 7a loan.

Do your projections make it absolutely clear that you can service the loan from day one from the cash flow of the business? Have you shown the lender a cash flow (EBITDA) forecast or simply an accounting profits forecast? How are you using the funds? Are you spending the money on fixed assets or working capital? Have you properly shown that your fixed assets are to be capitalized and not expensed? Have you proposed a loan structure of a term loan or a revolving line of credit? Is there a secondary source of repayment for the loan? A third source of repayment for the loan?

There are a number of things you may not have shown to the lender in the best light which may be hurting you notwithstanding a great plan and a high FICO score. Maybe it's time to seek the advice of a professional who works with closely with lenders. This professional should be able to define the risks inherent in your situation so that proper mitigants can be developed and proposed to give the lender the comfort to say "yes".

Marshall Lebovits
www.Funding911.com

Sounds like you may be making some assumptions that are reducing your cash flow and increasing your debt service - a potentially troubling combination when trying to convince a lender of your ability to service the loan.

I'm in the office (Pacific time zone) on Monday at 310-371-4011. I would be happy to review your projections and assumptions and see if there's a way to improve the probability that an SBA lender would agree to give you a loan. No charge, no obligation on your behalf.

Marshall Lebovits
www.Funding911.com

Candoit,

Here are a few common mistakes I see with the projections of entrepreneurs. If you have made any of these mistakes, you could be shooting yourself in the foot with a prospective lender.

First, I've seen projections where the borrower included capital expenditures as expense items rather than capitalizing the asset and depreciating it. This will overstate expenses and understate cash flow (EBITDA).

Second, a borrower may think they're getting a great deal on a lease thereby reducing the amount of a term loan needed from a lender like the SBA. This often serves to reduce EBITDA available for debt service more than it reduces debt service.

Third, many borrowers wrongly treat debt service as just another P&L item rather than a liability to be serviced from EBITDA. Many borrowers deduct the full amount of the loan payment as well when for P&L purposes they should only be deducting the interest component.

Fourth, if you make an incorrect assumption on the allocation of your loan between term and working capital, your debt service threshold test could be calculated incorrectly.

As for your last question, I am a Los Angeles area advisor to small businesses who need assistance correctly telling their story to the right lenders - many who are seeking deals nationwide. When I take on an assignment, I have a high rate of success because I have pre-screened the deal with right lenders. In the pre-screen, I have answered for the lenders the key questions they need addressed in order to approve a deal.

For more information about my services, you can read http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html .

Hope this is helpful!

Marshall Lebovits
www.Funding911.com

Sir

We are not a start up we have spent 3 years developing our products and have a CSC certified container system Patent pending with 5 new patents being applied for this year, we have now brough our system to one of the leading companies to bring our system into the franchising business. our containers have been widly accepted in the industry and we are now going into full production in our new 200,000 sq ft facility thar we are under contract for we sod over 1 MM in 07 to a fourtune 500 company and have potiential orders for many time that starting this year, we are the manufacturer and we are starting the sales as a franchiseor this year, If you are interested in this please contact us at Allenvte@aol.com and look at our web site that we are presently updating AllianceTG.com
thank you
Jay Solano

Hello Friend,

I will advise you to go to Point Financial Services i tried them before
they where very effective to me they are the only agency i can assure
you of contact them at

point.financials@gmail.com