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19 Replies Last post: Jun 28, 2009 7:57 AM by Kulit629

Running out of money, need growth capital and advice

Dec 2, 2008 5:38 AM

Click to view apparelmaster's profile Authority apparelmaster 10 posts since
Nov 29, 2008
Hi Everybody!

We have a profitable apparel business that has continuously doubled sales during the last 3 years, we are reaching $1M this year.

We have a 7A loan for 150K but, the bank 8 months ago didn't want to extend it, now we are 2 months behind and it will be harder to get another loan from SBA.

Looks like all investors are looking for technology and our market is approx. 130 Billion dollars!! Now we have approx. 50K in PO's to deliver in January and no $$$ to pay to manufacture the items.

We have approx. 80K in inventory, shoud we liquidate inventory at like 1/4 to get some $$??

Our credit scores are low as we injected $$ from our personal cc's several months ago. Sales this year are the best from the 5 years we've been in business and no capital to continue growing.

Factoring doesn't work for us as we are not giving credit to any clients to give us a better cash flow.

Any ideas would be appreciated
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Click to view LUCKIEST's profile SCORE LUCKIEST 7,926 posts since
Aug 6, 2007
1. Re: Running out of money, need growth capital and advice Dec 2, 2008 8:13 AM
in response to: apparelmaster
Need growth capital and advice, Welcome

Sounds interesting. Also sounds like you need both a Business and a Marketing Plan.

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

ON line you can pick the SCORE Counselor that can help you the most.

Good luck, LUCKIEST
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Click to view Tony2009's profile Mogul Tony2009 13 posts since
Nov 17, 2008
2. Re: Running out of money, need growth capital and advice Dec 2, 2008 8:40 AM
in response to: apparelmaster
Mostly everything you've mentioned is logical and makes sense.
Towards the end however seems a bit eerie. If your sales have increased over the last several years. Than how is it that your cliental is not receiving credit from you. Nevertheless, I hope all turns out well for your business. Please call 877-700-7947 Ext 1232. Ask for Mr. Tony Keith.
Best of Luck!
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Click to view apparelmaster's profile Authority apparelmaster 10 posts since
Nov 29, 2008
3. Re: Running out of money, need growth capital and advice Dec 3, 2008 12:41 AM
in response to: LUCKIEST
Hi Luckiest,

Thanks for your answer. Yes, we visited score in Glendale, CA but, our company is already established 5 years so they were not able to help us.

Yes, we have a 25 page business plan
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Click to view apparelmaster's profile Authority apparelmaster 10 posts since
Nov 29, 2008
4. Re: Running out of money, need growth capital and advice Dec 3, 2008 12:41 AM
in response to: Tony2009

Hi Tony,

Yes, during the last 6 months we are not offering credit to create a better cash flow for the business. We require that for big orders 50% deposit and 50% delivery or cc payment before delivery.

Do you have any other ideas as factory is not working for us.

Thanks!
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Click to view netnextday's profile Authority netnextday 11 posts since
Feb 13, 2009
5. Re: Running out of money, need growth capital and advice Feb 17, 2009 12:40 PM
in response to: apparelmaster
There are factoring companies out there that will lend on PO's.....just be careful to read all of the fine print. It is more costly than traditional factoring but it might be a way to help short term. Is there a reason that you do not offer your customers terms? If you decided to change that process, you may earn even higher sales and be able to talk about transaction based financing. We offer a product that is a hybrid between a line of credit and a factoring company.....lower fees........more bells and whistles but you would have to offer customers terms. If you do not want to go that route, google purchase order financing and you will see several companies that would probably work with you...just do your homework if you proceed. Good Luck!!

Netnextday@yahoo.com
Nicole
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