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You have several options for your start-up.

First, if you are seeking a SBA loan - your best bet is to contact all the local banks in your area. These financial insititutions are more friendly to start-ups and should know your market.

Second, you may have to seek a combination of loans for the amount you are seeking and be creative in doing so. If you own your equipment outright - you could try selling it to an equipment loan or lease company - receive cash for the equipment - then purchase (on terms) or lease the equipment back with a buyout option. This would only be a paper transaction you would not have to take your equipment to the company. This would probably provide you with the best rates and terms.

If you are seeking additional equipment - bypass the banks who do not like start-ups and find a lender that specailizes in equipment. These lenders only deal in equipment and understand this market - plus, they want to work with start-ups.

For working capital - you can seek unsecured loans that can provide you some of what you are seeking - there are many sources depending on the amount you need. If you have completed a cash budget, you may find that you do not need $542K in cash right now but will need that over time. Thus, if you can get all of those fund in one lump, you might try getting what you need for the next few months - once that is taken care of - start finding capital for the next few months - (I know this is not the optimal way to raise funds but if you cannot get a single lump sum - this may be your only way).

If you have other business assets like accounts receivables or purchase order - you can factor these as well for working capital - you get better rates and terms.

A combination of loans may be your only option as very few lenders will provide that amount of capital to a start-up.

Lastly, why $542K? Can this amount be reduced through cost management until your business picks up its revenue?

Business Money Today
www.BusinessMoneyToday.com

Yes, we actually have a couple of business plans, one of which is specifically for a SBA loan.

As for the $542K, originally it was $1.5 miilion, and we broke it down into three phases because we knew getting a loan for that amount was going to be hard.

I'm sure we can cut more corners and get that amount down, but the problem is we've actually cut everywhere we could. Any amount significantly lower, and we will probably be wasting our time because we may run out of money before its run... if that makes sense. It's all explained in the business plans.

Luckiest,

He can either call me at 949-329-0045 or if he would rather email me it's dmallabout@yahoo.com.

thanks