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    4 Replies Latest reply on Nov 24, 2008 12:41 PM by ManhattanT

    Seeking 250-300K Loan For Established Business

    Green65 Newbie
      Hello, I operate an established landscape installation & maintenance business (corp) in central Illinois and am seeking a loan in the amount of $250,000-$300,000. Would like to use the funds for operating capital and to pay down higher interest debt incurred during the earlier establishment period of the business. The business has been profitable for over 10 years, has good cash flow and all is legitimate. Business and personal credit is good-no late pays, derogatories, etc and good scores. The only negative is level of debt. I would like to see a favorable interest rate and terms of approx. 10 years. I would prefer a private/angel investor as opposed to a shotgun approach through a loan broker. I am, however, keeping my options open to any viable financing ideas and suggestions. One option we do not have is factoring against credit card sales since we do not accept them. I am willing to share all financial information, details of the business and even welcome a personal visit under the right circumstances. Initially, i may be contacted at gonegrn65@gmail.com Thanks for any help you can offer.
        • Re: Seeking 250-300K Loan For Established Business
          NoBullFunding Scout
          Hello Green and welcome,

          Out of curiousity, why would you want to give up ownership in your business to an investor rather than take a loan? Have you already tried the bank route and been turned down?

          Realistically, yours is not the type of business that an investor would be interested in buying into. Investors are looking for investments with high return potential, usually in the form of a new concept or a business that is poised to go national. Standalone businesses aren't typically on their radar.
          • Re: Seeking 250-300K Loan For Established Business
            ManhattanT Newbie
            I do not know who your local bank is but I assume you have spoken to them.

            You might qualify for a 7a SBA loan. Go to their website and read up on the program. If memory serves me correctly if the savings on getting a SBA exceeds 20% on the debt you presently have you would qualify.
            It will be a variable rate but since prime is 4% at most they would charge you 6.75%.

            They will want collateral of some sort which I would assume would be business assets.

            I recently did a loan with B of A and they were very helpful.

            You should also be able to Google up a whole load of banks within a 20 mile radius of your business. They are still looking for business and balances.

            I have done perhaps 70-100 million in SBA's over the years and the program is much maligned.

            You should be able to get 7-10 years.

            Local Colleges have some excellent programs to help you and there is always CORE.

            Outside equity is not the way to go. I agree with the other reply.

            I am one of those awful brokers. The problem with the broker business that it is not regulated. Also, it appears that the residential brokers are now going into the business. Need I say more.

            Good luck.