My business partner and I started a wine importing business this year with $80K. We also secured a $15K line of credit and a $10K loan from one bank. The structure of the business is established; federal permits have been granted, state licenses have been granted in NY, NJ and PA, contacts for suppliers are established, and warehousing and distribution is set up. We have imported a few hundred cases of wine which has been very popular with retail outlets and restaurants. And we have generated a small amount of revenue.
Now, we need $200K to hire 2 sales reps and import additional wine. I also need to start collecting a salary. I have spent the year without taking a salary while starting the business. I would also like to be able to provide health benefits, which may require additional capital.
I have approached B of A about loans, but was told that we need to be generating in excess of $800K in annual revenue to acquire that large of a loan. My reply to them was, "if I was generating $800K in revenue, I wouldn't need a loan."
I have been approached by foreign investors to supply the funds, but that would require giving a large part of the company to the investors.
My hope is that I could acquire a 7 year loan for the $200K and expand the business pretty quickly. Is that possible? If so, what steps do I take?
