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    3 Replies Latest reply on Feb 25, 2009 10:18 PM by techcorp

    Experienced veteran in Information Tech seeking loan

    techcorp Newbie

      Banks don't seem to be lending to businesses, no matter how strong a business plan, credit rating, etc. The one weakness I have is I don't have enough collateral to come up with the 25% (appox. $80,000) that the SBA doesn't back. I don't have friends and family with that kind of money, I do have an IRA however banks can't use that for collateral. As a veteran I think it stinks. Most veterans I know don't have that kind of money up front, the military never pays that much.

       


      I have been trying to get a Patriot Express Loan to no avail, I have a solid business plan, that can really provide jobs to this economy (backed by 25 pages of market research) specifically in the technical sector, however without the necessary funding to startup. It will just be a downward spiral for this idea to take root, or any other entrepreneur like myself.

       


      Can anyone give advice on how to obtain collateral ($80,000) to obtain a loan? Any help would be greatly appreciated.
        • Re: Experienced veteran in Information Tech seeking loan
          bmt2008 Adventurer
          First - thank you for your service. I too am a vet - ETSed in 1992. If your personal credit is above average, you might quailfy for a personal loan for the $80K - provided your current debt loan is not too high and you can demonstrate an ability to repay.

          Also, keep in mind, that getting additional credit or collateral could change your debt ratios for the SBAs underwriting.

          If you are seeking equipment (nearly any business equipment including office equipment, computers, servers, etc) you may be able to lease them - usually cheaper than taking a loan and still offers many of the same benefits that purchasing equipment does - depreciation, income reduction for tax purposes.

          Thus, you might be able to lease the equipment you need and get a small personal loan for working capital - might even try several credit cards for working capital or purchases.

          Lastly - think about a partner - one who has credit, collateral, and/or experience. Think locally - network in your community (go to your chamber of commerce and ask them about local business and non-business networking events). Attend these and start talking with people. Never know who you will meet and make a connection with.

          Just some thoughts

          Business Money Today
          www.businessmoneytoday.com
          • Re: Experienced veteran in Information Tech seeking loan
            LUCKIEST Guide
            Experienced veteran seeking loan, Welcome

            Who are you?? First name??. It is easier to write to you with a name.

            YES times are tough and have changed quickly. I would like to read your Business Plan.
            You can email it to " pdeig@juno.com "

            Talk to me, LUCKIEST