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    13 Replies Latest reply on Jul 21, 2009 12:32 PM by LeeRobert

    Funding Help

    placeintime Wayfarer
      I posted this under the other forum (Starting a Small Business), but I think it should be here.



      I am energized with optomisum. I have just finished my business plan after working on it for 10 months. It was a great experience and accomplishment to have done every aspect of it on my own, with some mentoring help of couse. I am not discouraged by the economy, because I know that alot or great companies were started in bad economic times. I am now trying to find start-up money, and am wonder what is the best avenue to take. I am calculated risk taker, I think anyone who starts a business is and should be. I talked to the SBA in my state and they told me to try, on my own, to get bank funding then come back to them if unsucessful. Anyway I am looking for some advice. I have done the SCORE consuling and read and re-read and gone over this business plan and I want to move on it. The building that I need it to go in is current up for lease so I want to move on this ASAP.

      Here is the cliffnote on the business: it is a kids play cafe with a twist. It is going to be set in an historic building, in a historic town. It will be on the smaller side so we can focus on the food quality, cleanlines and service. In the county that I want to put it in there is 180,000 and there is just one such establishment, with none in any of the surrounding towns. I am looking an putting up $50,000 of my money and am looking for an addional $250,000. I have listed my wife as the majority owner, so as to be a woman owned business and we both have excellant credit, in the low to mid 700's. I am just intersted in the best and quickest way to get this financed. I am exicted to start this chapter in my life and making my own future. Anyone who can point me in the right direction would be apprectiated.

        • Re: Funding Help
          BizSolutions Adventurer

          Please email me as I may have some solutions for you.

          • Re: Funding Help
            phanio Pioneer
            With good credit and some of your own equity - you should be a good candidate for a SBA loan. If that does not materialize or you wish to go a different direction, I would suggest that instead of seeking one loan facility for all your financing needs - look for several loans based on the purpose of the funds.

            If you are seeking equipment - look to equipment lenders - they will get you the best deal on equipment loans. If you are seeking working capital - then look for ways to secure working capital. If you are looking to purchase a building - look to a commercial real estate loan.

            Here is why - it is very hard to get a single loan to cover all your financing needs - especially if you want the funds unsecured. If you can match the need to the purpose (as outlined above) not only will it be easier for you to get - but will provide better terms and rates than one single loan that has to account for more risk - meaing higher rate and fees.

            This way - you get a better deal on specific loans like equipment, etc and reduce the amount of unsecured funding you may need - which in turn results in lower risk thus lower rates and better terms on that loan as well.

            We list all sorts of information and resources on our website that can help you better understand your options.

            Business Money Today
            • Re: Funding Help
              ggoodard Adventurer
              I would like to learn more. Please email me at
              • Re: Funding Help
                Creditbuilder Scout
                Hi there! I just wanted to let you know that Federal grants are available and I think your business will more then qualify. For more info go to good luck! This is fa ree service to you by the way.
                • Re: Funding Help
                  mightyventure Wayfarer
                  To start to determine your financing needs, prepare answers to the following questions.

                  · What types, terms, timing, and tradeoffs are acceptable? (You'll need a capital acquisition strategy to determine this.) Perhaps angel investors are most appropriate. If so, you'll get the money in faster if you focus on a small bridge loan that will convert to equity later. Be sure to offer warrant coverage or a premium on conversion to make investing now compelling.

                  · Have you prepared for your financing round? Do you have a concise and compelling pitch and list of appropriate targets?

                  · Do you have your legal act together? You may want a sample term sheet, shareholder or loan agreements, and a confidentiality and proprietary inventions agreement.

                  · Do you know the dos and don'ts of fundraising?

                  · Have you prepared a due diligence package? This process will be remarkably fast if you prepare in advance.

                  · Have you mapped out the long-term effects of dilution? How will you be reporting to your investors, lenders, and board of directors? How will you manage your board of directors?

                  If you can be prepared with the answers to these questions before you begin your financing journey, your process will go much faster - and be much more likely to succeed.
                  Get more advice from us: Business Mentoring at
                  • Re: Funding Help
                    amspcs Ranger
                    Please email me your email address. Thanks.
                    • Re: Funding Help
                      gary_banker Newbie

                      Send me you contact info and I will see if I can help you with your funding needs. My email address is

                      • Re: Funding Help
                        anuj_kumar05 Newbie
                        I am a qualified & experienced teacher in various subjects but due to my financial crunch , i am not able to set up my STUDY CENTRE, In this regard i am seeking finacial help for this NOBLE CAUSE, PLEASE COME FORWARD TO HELP THIS HANICAPPED TEACHER.
                        I will be eternaly gratefull to that person .
                        PTR. Anjan
                        • Re: Funding Help
                          Be careful with all of this advice. The most problems I see with small business owners is finance related. Focus on exploring all avenues of funding your business first.




                          Ilya Bodner
                          Small Business Owner
                          Initial Underwriting Group