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10 Replies Last post: Sep 3, 2008 11:24 PM by jaffersm

Best Option to get Finance for a new business (Corp or LLC)

Aug 30, 2008 12:41 AM

Click to view jaffersm's profile Authority jaffersm 10 posts since
Aug 28, 2008
We have registered as LLC and invested in a franchised business which has around 60 franchisees through out US.
We need money for working capital around 50K +, is there a way we can get financing from bank. The value of
franchise + the asset we have invested in is around 60K.
Tags: funding, new_business, business_start_up, real_estate Report as inappropriate
Click to view LUCKIEST's profile SCORE LUCKIEST 7,912 posts since
Aug 6, 2007
1. Re: Best Option to get Finance for a new business (Corp or LLC) Aug 30, 2008 8:43 AM
Best Option to get Finance for a new business, Welcome Sal

One of the first items a bank, lender or investor will want to see is a Business and Marketing Plan.

Part of the Plan is determining how long you need the funds for.

SCORE can help you develop both. SCORE is FREE.

Good luck, LUCKIEST
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Click to view jaffersm's profile Authority jaffersm 10 posts since
Aug 28, 2008
2. Re: Best Option to get Finance for a new business (Corp or LLC) Aug 30, 2008 1:32 PM
in response to: LUCKIEST
LUCKIEST, Thanks for your input, I will check Score out.
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Click to view Fortis's profile Mogul Fortis 239 posts since
Jul 24, 2008
3. Re: Best Option to get Finance for a new business (Corp or LLC) Sep 2, 2008 9:53 AM
From a lending stand point we dont look at how your registered as much. Yes you have to be registerd and in good standing but not much more. As a new business you will personally guaratee any loan approved anyways so it will boil down to the risk level of your business and all owners personal credit.

Now the dollar amount and what you are trying to do is going to be relavent to figure out what type of finance product will be best for you and your business.

What is the $50K going towards?
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Click to view Bridge's profile Mogul Bridge 359 posts since
Jun 3, 2008
4. Re: Best Option to get Finance for a new business (Corp or LLC) Sep 2, 2008 11:08 AM

The franchise agreement disclosure should have had an estimated working capital amount in it somewhere. What amount did they say you would need for working capital?

You might have had an easier time getting an SBA backed loan before you bought the franchise - one that covered the initial purchase plus working capital.

That being said, as a new business, any loan will probably require a personal guarantee. If available to you, home equity lines can be easier to obtain, have a better interest rates, and longer payback periods,
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Click to view sd4fun's profile Start-up sd4fun 1 posts since
Sep 2, 2008
5. Re: Best Option to get Finance for a new business (Corp or LLC) Sep 2, 2008 11:35 AM
I am researching business growth funding possibilities for my IT B2B Services. My name is Al, email is cmoms@austin.rr.com, phone is 512-837-1000. Please responed with possibilities.
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Click to view LUCKIEST's profile SCORE LUCKIEST 7,912 posts since
Aug 6, 2007
6. Re: Best Option to get Finance for a new business (Corp or LLC) Sep 2, 2008 11:39 AM
in response to: sd4fun
Best Option to get Finance for a new business, Welcome Al from Texas

Tell us more. Go to Members page and share some info.

Do you know about SCORE?? SCORE is FREE both in person and on line.

Good luck, LUCKIEST
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Click to view Fortis's profile Mogul Fortis 239 posts since
Jul 24, 2008
7. Re: Best Option to get Finance for a new business (Corp or LLC) Sep 3, 2008 8:38 PM
jaffersm,

Good afternoon, hope your day is well. Just wanted to check in with you to see how everything was coming along. Have you found a good source for your situation?
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Click to view jaffersm's profile Authority jaffersm 10 posts since
Aug 28, 2008
8. Re: Best Option to get Finance for a new business (Corp or LLC) Sep 3, 2008 8:59 PM
in response to: Fortis
Fortis, I am still looking for best financing option. Can you throw some light (I mean finance light)....
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Click to view Fortis's profile Mogul Fortis 239 posts since
Jul 24, 2008
9. Re: Best Option to get Finance for a new business (Corp or LLC) Sep 3, 2008 9:03 PM
in response to: jaffersm
Can you send me some more detail on your business and what you are trying to do?
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Click to view jaffersm's profile Authority jaffersm 10 posts since
Aug 28, 2008
10. Re: Best Option to get Finance for a new business (Corp or LLC) Sep 3, 2008 11:24 PM
in response to: Fortis
Forit. Can I send you an e-mail? Mine is jaffers@telemansys.com. I will send you a detailed reply.
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