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    5 Replies Latest reply on Mar 3, 2009 6:32 PM by bmt2008

    New Biz is Open & Doing Well but Struggling with Cash Flow

    dognanny Newbie
      I opened a dog daycare in New Orleans on September 22, 2008. Despite the economic challenges (which aren't as bad here as elsewhere), we're growing every month, have clients who love us and are already earning enough to pay salaries. A newspaper article yesterday named pet care as one of the few bright spots in the economy with 2009 GROWTH projected at 6%. The downside is that I started with inadequate capital and so am short on working capital and have an onerous debt burden.

      This time last year, a major bank courted my business and told me I was approved to refi and cash out on my house, the proceeds of which would
      have been used for startup. I had a credit score of 834, about $200K equity in my house and almost no debt other than my mortgage and car note.
      I had never been turned down for credit on any level (department store to mortgage) and had no reason to think I would not get the money. My house
      was appraised 3 times, my income verified multiples of that and four closing dates set. Based on their assurances, I signed a lease and
      construction contract. Then, 4 1/2 months after applying, I was told the loan would not be made after all.

      Having signed contracts I felt obligated to honor, and believing that it would be a simple matter to refi later, I borrowed from my retirement
      fund, family and friends, and maxed out my credit cards to renovate the rented property and open the doors. Alas, the economy conspired against
      me and the stock market crashed just about the time I opened.

      So here I am, with a great business that I love going to every day, still working a part time job to bring in cash to support me, and in danger of
      it all slipping away, largely due to external forces.

      I AM a good credit risk - my score, even with the added debt is 690-705. I honor my commitments and know that I am on the right track. I just need
      to find a financier or investor willing to take a chance on me.

      My business is located in a semi-blighted area on the edge of the CBD of New Orleans, an area that was heavily damaged by Katrina. I've created
      several part-time jobs (and found wonderful employees), improved the property and added a service to the downtown area that was lacking
      previously. I own 100% of the business and am certified as a small and emerging business by the SBA.

      If you'd like, check out our website to learn more about what we do and see the dogs and nannies at play (camera 2 is
      the best to watch). We are by far the best business of this kind in the area and need a chance to make it.

      If you have any suggestions for me, please let me know.
        • Re: New Biz is Open & Doing Well but Struggling with Cash Flow
          rgershenuk Newbie
          I have just seen your post requesting a finanmcier for your project. I wish to know if the request is still open.
          Please contact me on any of my contact information listed below.


          Roland Gershen
          T: +44 703 595 6480
          • Re: New Biz is Open & Doing Well but Struggling with Cash Flow
            LUCKIEST Guide
            Struggling with Cash Flow, Welcome and the best of luck

            As I read your post, it sounds like the business is doing O K, however you have a cash flow problem based on start up costs. Do you have an Accountant?? Do you accept credit cards??

            I did check out your web site. Investors and lenders will not consider providing money to you or your business without a Business Plan. How much funding do you need??

            It also sounds like you should develop a marketing plan and get some FREE publicity from the local newspaper, but that is another issue.

            Again good luck, LUCKIEST

            • Re: New Biz is Open & Doing Well but Struggling with Cash Flow
              LUCKIEST Guide
              New Biz is Open & Doing Well, Welcome Ann Marie

              As I read your post, the business is doing O K. It was the cost to renovate and open that is affecting cash flow. Do you have an accountant?? Do you accept credit cards??

              Will talk to you, LUCKIEST
              • Re: New Biz is Open & Doing Well but Struggling with Cash Flow
                Creditbuilder Scout

                Sounds like the first thing you need to do is convert your personal debt to the business to free up your DTI. Once this is done you can not only leverage your business portfolio, but your business credit portfolio as well with lenders. So if your issue is that you have a lot of personal credit used, we can levarage your business to potentially get up to 250k and use a portion of that money to free up your personal debt as well.

                However, since your business is really new, the most I can see you getting is up to 250k, maybe 300k.

                Check out my profile and if you have questions give me a call.

                Best wishes.
                • Re: New Biz is Open & Doing Well but Struggling with Cash Flow
                  bmt2008 Adventurer
                  Can you provide a little more about you are seeking? How much? For what use?

                  There are several options that might be open to you.

                  1) Business Cash Advance. This is not a loan but an advance against future credit card reciepts. If your business takes in more than $4K per month in credit card reciepts, you may be able to get an advance against your FUTURE sales. The pay back for these advances are from a small portion of your future sales - thus, not putting a huge burden on your daily cash flow.

                  2) Personal or business unsecured loans - there are some lender that are willing to lend to those who have credit ratings in the 700s. But, be warned that they also require a strong repayment ability and a managable debt level.

                  3) Business Credit Cards or Charge Ccards - while many of these programs are drying up - the ones that remain still offer decent credit limits. The interest is high but usually no higher than you would find anywhere else other than the home equity market. Might be a thought to secure one or two of these these before your credit falls further.

                  4) If you are looking for just a small amount - under $25K - then there are several additional options like micro-credit or peer-to-peer social lending that might work for you.

                  Just some thoughts