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    3 Replies Latest reply on Oct 15, 2009 5:12 AM by CCS_INC

    Interested in advice on loans and banks

    jneumann1 Newbie
      Hello everyone, my name is John, I'd like to apologize in advance if I sound like a moron, I have a learning disorder and I have trouble getting my point across in certain cases (well, I'm not particularly sure on that, although I've been fired and ridiculed enough times for it to make anyone believe maybe I have a few screws loose).

      Anyways, I've been trying to get my business up off the ground for quite sometime. I've been applying for loans all over the place (all banks) but alot are very iffy, anyways.

      I have no income, ish credit (about 578 I believe), I own nothing (that can be used as collateral).

      I've spent countless hours getting my business set up. We are a pretty small time game design company. So far I have a completed business plan (which has everything, target markets, list of products, exit strategies and a detailed finance expectancy chart for the first two years), I have a list of employees ready to work for me as soon as we get funding, and the complete design document of our first project (as well as partially completed documents on later projects). I aslo have a partial prototype game set up for our first project. The only thing we need is payroll and money for equipment, as well as some extra money set aside for marketting purposes. All that, plus a few extra for loan repayment for the first year we need a loan of about $250,000.00.

      The two banks that have gotten back to me so far are Wells Fargo and Associated Bank. Wells Fargo told me that they require 30% of the loan (not sure if they meant that I need to put that money down which is illiegal I think? or if they meant that I needed to have that in my total assets). And they would not allow any work arounds (or what I creativly suggested a series of smaller loans to cover each other all down the the $3.50 that I could problably put down, he told me he didn't think that was funny though.) Associated Bank didn't even ask for anything from me other than credit stuff, how long I was in business and what I'd be selling, and didn't even bother looking at my business plan, and they said it was "too high-risk because I didn't know what I was doing". I've been designing games since I was 12, but of cource that doesn't matter since I haven't been on anyone else's payroll.

      In my financial analysis, if I even move 150 units a month (I can do that in my sleep), our business will be making a pure profit of $4,000, which is a very realistic number based on our advertising campaign. Like I said, all we need is the money, I've set aside an entire year just to get the game up and running and we'll still have plenty of funds left over to cover the company in case of failure.

      If anyone here can give me some good advice on where I should try, what else should I produce (other than capital) for them, and just anything else. Thanks alot for listening.
        • Re: Interested in advice on loans and banks
          phanio Pioneer
          With your poor credit and lack of income - getting a bank loan will be nearly impossible. Even the non-bank lenders like micro-loans and peer-to-peer social lending require your score to be in the mid 600's.

          Two suggestions:

          1) Fix you credit score and take a job to have income - you can still work on your business part-time - when it takes off you can quit your job. Think of it as a means to a ends.
          2) Have you looked into SBICs. Small Business Investment Companies may be willing to provide you the funds you need as convertable debt. You would just have call around and start talking with these companies - you can find a list of SBICs in your area from the SBA's website or from our website.

          Business Money Today

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            • Re: Interested in advice on loans and banks
              jneumann1 Newbie
              Well, that helps out a bit. I'll try calling around and seeing if I can get ahold of an investor.

              The credit score might be a bit difficult to fix, however. I was just recently fired (because of my disability and because I had to go to the hospital) and I see this as an opportunity to really get things started. I'm very determined though, and I'm going to see this through so we'll see what happens. Thanks for your advice!
            • Re: Interested in advice on loans and banks
              CCS_INC Adventurer
              You should try looking up local CDFI's ( Community Development Financial Institutions) Many offer financial products such as small business loans and grants without any credit history or collateral. They mainly base the loan off of pure personality and the fact you must go through training to learn to be a smart business person, bookkeeping, networking, etc. However they typically lend in low income areas or serve populations where traditional funding cannot be obtained. You should definately check it out. I will give you the website of a CDFI based in New York City to give you an example. After you have checked them out, see if you can locate one in your local area. Also read up on how to obtain grants to start businesses. You wont find grants to start businesses from the gov't but mainly from private company foundations. And last, build company credit to obtain the funding you need for your business. Remember that we may be in a recession, but there are definately funding sources available to you if you do your research. Hope this helps. If you need any further questions answered feel free to email me at
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