ForumsFinancing Tips

Thanks so much...We hope to open within 2 months and we're about 25 miles outside of Chicago. My husband and I had credit scores of 700+ as of Feb, 08. We obtained a $30,000 home equity loan (no equity left) and a $12,000 SBA loan. We under estimated build-out cost and need an additional $15,000 for popcorn machines and working capital. Since Feb. our credit scores have dropped below 680 because I've been applying for business credit cards and getting declined due to high balances (no late payments or adverse credit). I can't find anyone that does business loans on popcorn equipment and I'm afraid I'll have a huge cash flow problem if I can't secure addtional financing. Any advise?

You're absolutely right about unexpected expenses! I prepared a business plan early in the process as well as financials. I've spent close to $20,000 to date (from savings) but had expected to spend $12,000. I have two quotes for equipment...$10,000 and $15,000. At $10,000 I'll get fewer poppers and have $5,000 left, which doesn't leave much. If I can finance the equipment, I don't have to use my cash, which is the better option. I'm just not sure how to raise the additional capital now that my credit score has dropped so much. ???

I spoke to a company yesterday, Amerifund, who has a lender willing to do the $15,000 equipment lease...I'm a little leery because the interest rate is extremely high. She said my credit score was good at 685 (no derogatory information). I tried banks initially, because I would feel more comfortable with a line of credit in case of emergencies. But, the standard line has been "we don't do start-ups". Both my husband and I are owners of the business but he will maintain separate employment.

Thanks for the offer to contact you...I may just do that!