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    5 Replies Latest reply on May 20, 2009 8:02 AM by phanio

    Is there any way to obtain financing

    gmydoc Newbie
      We decided three years ago to change our business plan and restore-customize six Corvettes big mistake our employees could not do the work leaving me to do all the build-up on the cars. Three years later the cars are completed leaving our reputation intact with me being the only one doing the work though our income was much lower. Our reputation is worldwide and I write tech articles and tech columns for various publications so we had no choice but to complete the cars or lose face. Now that the cars are finished we decided two years ago to buy a building and move the business out of Florida to start-up another shop concentrating on what worked well in the begining.
      We figured no problem sell our Florida home and use the equity to finish paying off the commercial property make the move. Like everyone elses problem now we can't sell the house and there is no equity. We have a ballon note on the commercial property for 130K due now and haven't worked in the shop since Oct 2008 making the move and trying to complete the renovations on the building so we can work. All the lending institutions we have contacted want three years tax returns and although we have an extension I don't believe that the return will be favorable for a loan because lenders want to see enough income to pay for the note. Certainly I understand that the note must be secured and paid my main question is how are you supposed to obtain a loan using a business plan when they want to see past tax returns that don't reflect the business plan.
      We have building/property equity, shop equipment and inventory we need the funds to pay the mortgage and finish renovations plus some operating capital how do you go about finding the funding?
        • Re: Is there any way to obtain financing
          ggoodard Adventurer
          I would like to open a dialogue. Can you send me an email at ggoodard@aol.com?

          Thank you
          • Re: Is there any way to obtain financing
            phanio Pioneer
            There are options for you - not income based options like banks - but asset based options (non-banks) that can get the capital you seek. Please visit our website for information and resouces. Do not hurt to look.

            Business Money Today
            • Re: Is there any way to obtain financing
              NoBullFunding Scout
              Business plans are nice to have, but the most important thing is historical cash flow. If on a historical basis, your business does not demonstrate the ability to repay the debt you ae seeking, its going to be an uphill battle for you. Your only hope would be if you have an abundance of collateral, preferable liquid but real estate could do if the LTV is low (like 50-60%).

              Bankers like to torture borrowers by making them prepare business plans, but they fail to mention that the business plan is fairly useless if there is not demonstrated history of cash flow.

              Best of luck,
              NoBullFunding
              "Contact Me For a Free 30 Minute Consultation at NoBullFunding@gmail.com"
                • Re: Is there any way to obtain financing
                  gmydoc Newbie
                  The problem is we did the moral thing and finished the projects that only I could do dropping the work force to two people and lowering our income level for the three years that it took to complete them. Making the move also hurt 2008s return because of the missed work. We have equipment, inventory etc unfortunately I know that it's worth pennies on the dollar to banks. To make matters worse the building with the ballon note is under renovation so it must be completed to get a true appraisal. Thanks for the comment
                    • Re: Is there any way to obtain financing
                      phanio Pioneer
                      Your equipment and inventory may be worthless to a bank - but not to a non-bank equipment lender. There are programs called sale-lease back. The lender purchases your equipment for cash (much higher valuations than banks) then you lease or purchase it back making monthly payments similar to a loan.

                      While banks not only want to see cash flow and two to three years of profits - there are other lenders that focus more on the assets (hard or financial) in making their decisions.

                      Business Money Today