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    5 Replies Latest reply on Feb 16, 2009 10:12 PM by AceMan

    Need help finding working capital/loan for startup business

    AceMan Newbie
      My wife and I are planning on opening an Ace Hardware store. We have been approved for the SBA loan, but we are having problems coming up with the $150,000 working capital upfront that we need to show the bank. Do you have any ideas of where to go for an investor or loan that the bank won't see. Maybe an unsecured line of credit for a startup business?. They would rather we don't take out a loan for this money, but with the housing prices and 401K's what they are today, we are having a tough time finding this money ourselves. Any help would be greatly appreciated! Thanks!
        • Re: Need help finding working capital/loan for startup business
          bmt2008 Adventurer

          There are companies that do provide unsecured personal loans from $10,000 to $100,000. But, you must have excellent credit and be able to demonstrate the abiliy to pay the monthly payments (not in the future after you get the franchise) but from income you have now. Both you and your wife could apply separately.

           


          You can also network in your community. There are tons of social networking groups where you could find investors. e.g. doctors, lawyers, accountants, etc. that may take a minority ownership for the funds you need. I helped a person fund a franchise by introducing him around at my Rotary group. He found four doctors to be silent partners who funded what he needed.
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            • Re: Need help finding working capital/loan for startup busin
              AceMan Newbie
              Thank you for your reply...We do have excellent credit and I am actually keeping my job/career, I make approx $250,000 a year. I will continue to look for silent partners. I found a company local to me in San Diego that puts together unsecured lines of credit up to $150,000, just by using my personal credit. They said they piece together several loans from different banks and put them under a corporation that they build for me, as these usually legit? They have been in business for a couple years and have an office that I can meet them at. I just want to make sure it isn't illegal, or something that will bite me back in the future!
                • Re: Need help finding working capital/loan for startup busin
                  paratech Newbie
                  AceMan:

                  Follow Lucky's instructions. You must first have a business plan and try contacting Score. I can't understand why the company would have to "build" and/or form a corporation for you, unless it is a shelf corporation which they are selling. Also, unless you are really desperate, you may want to consider first building business credit so you are not personally liable for the debt. Additionally, the fact that they have an office, does not mean a thing. Make sure to check them out thoroughly, by going to the Department of State's website in your state and checking out when they incorporated, confirm the address where they do business, who are the officers of the corporation ... You may also want to run a quick Google on the company, etc. Be careful, there are a lot of people out there, who are taking advantage of our depressed economy and the need for money.
                  1 of 1 people found this helpful
              • Re: Need help finding working capital/loan for startup business
                LUCKIEST Guide
                Need help finding working capital/loan for startup business, Welcome

                If you need to raise money to finance a new business, One, You need A Business and Marketing Plan

                Two you need to talk to SCORE in person or online.

                Good luck, LUCKIEST