ForumsStarting a Business

You have provided sparse information. If you have been earning $2000 plus for some time you should be able to get a loan on the strength of that. You can always apply for a smaller loan.
You will have to give a clearer picture. Lots of people have read your post but not commented on it.
Tschuss.
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Thanks for the comments.

I just registered for the site yesterday and now I have updated my user profile.

Let see, from the comments I realize I need to imput more information. I guess the next important step would be to formulate a business plan. Luckily, being a Business Student I have already completed two business plans and know the process. Should I have this complete before I go to the bank requested loan information?

Other information: I worked at a Thrift Shop for many years developing skills about pricing items. I have found Amazon to be a great website for selling mass produce items quickly and effectively. EBay is great for those more unique and rare items, such as electronics. I've been spending about 1,000 dollars a month on expenses, acquiring merchandise (from pawn shops, goodwill, value village, thrift shops,etc), gas, mailing, bubble wrap envelopes.

In return, I've been getting amazon payments up to 3,000 a month and sold several larger items on craigslist.com. I'd say I spend about 15 hours a week doing this and really enjoy the hunt and awesome payoff.

What I am looking for: I am seeking around 20,000-30,000 dollars to start the business and run it for the next 6 months. Some costs I can think of include:
Better fuel car: Perhaps a used Jetta TDI which ges upwards of 45 mpg. (8,000-9,000 thousand)
Home mailing system, USPS has a new one for around 100 bucks with a 15 dollar a month fee. Would save time running to the post office and could schedule a home pickup.
One time computer purchase, 1,000
Personal wages probably 2,500 to 3,000 a month.
Mailing fees
Insurance, online fees, etc.
The rest of the money would be used to buy items for resale. I would travel extensively hitting up one major city in a day and buying what I know I can resell for a profit.

Typically my profits on items run from 50% to 200% of purchasing price. I have been very effective since I started selling items online in January.

Again, my parents are willing to co-sign for the loan and have great credit. Is the amount of loan I am asking for realistic? How much would payments be? What sort of taxes am I looking at for making sales between 50-100k a year?

Furthermore, what sort of insentives are there for small businesses, I remeber tha silly question mark dude on T.V. saying there was alot of government money for starting a small business, buying equipment etc. Is this even true? If so where can these types of small business opportunities be found?

Thanks,
Joel Mooers

Thanks for the reply, when I get my business plan done I'll send you a copy.

I went into Bank of America yesterday and they could not help me with the start-up financing. Apparently they specialize in expansion loans for existing businesses (2+ years). Also, I learned that my parents cannot co-sign on a business line of credit, because it would be a mixing of personal and business finance.

My next option is to try for a SBA(7) loan and continue hunting looking for loans. I think I will look into smaller banks who might not immedaitely reject such a "risky" investmenet. Another option is to have my parents finance me through the equity in their house, aparently interest rates are at 4.5%, the lowest I've found.

I'll keep you all updated!
Thanks
Joel

"you will satisfied with our products" ? SCAMTASTIC!

If you only need $20K to $30K - try peer-to-peer lending or micro-credit loans. Not as much emphasis on credit and time in business as traditional banks.

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