Post a new topic
    10 Replies Latest reply on Aug 19, 2009 4:03 PM by AMPlady

    What is the best option to get money for a business?

    anukshah Newbie
      I have a manufacturing company. I participate in tradeshows and have customers place orders. In order to fulfill the order I need to pay the manufacturer to make and deliver the goods. I also need to pay for trade shows. I really need money upfront until the orders are processed and I have been paid for the goods. I would like to know if a line of credit would be the best option for my business or if I should look into another option, like a long term/short term loan. I do not want to use my assets for collateral for the loan. I have good credit.

      anukshah
      <!--Session data-->
        • Re: What is the best option to get money for a business?
          Izzy.Coach Newbie
          first of all, ask your suppliers for terms. if you are an established business, many of your vendors might be willing to give you "net 30" or "net 45" day terms, which means you have 30 or 45 days from teh day you get your goods until you need to pay.

          this would allow you to sell the goods (at a profit) before you had to pay the vendor.

          even though you have good credit, i would take this step before any other... it's the simplest step, and would probably work the fastest!

           

          good luck!
          • Re: What is the best option to get money for a business?
            wilfin Adventurer
            What's the amount of capital you would need to meet the objectives you outlined?
            • Re: What is the best option to get money for a business?
              LUCKIEST Guide
              What is the best option to get money for a business?, Welcome

              How long have you been in business?? Where are you located??

              How can I get in touch with you?? email?? Phone??

              LUCKIEST
              <!--Session data-->
              • Re: What is the best option to get money for a business?
                nasser2604boa Newbie

                Anukshah:

                It all depends where is your business in the first place.
                How long have you been in this business?
                Do you have any prior exprience in the same field?
                How much money do you need?
                Last but not least; have you prepared your business plan?

                 

                Let me if you need more help.
                  • Re: What is the best option to get money for a business?
                    anukshah Newbie
                    Hello,

                    thank you for your response. I have been in business for four years. Being in the wholesale business, we have a season and at the beginning of the season I need to fund the shows and the clothing, i need some immediate cash. I have a good credit score and prefer not use my personal assets to secure a loan. I have approached several banks and this was the option I was given to get any funds. I am open to suggestions, and appreciate your time.

                    Anukshah
                    <!--Session data-->
                  • Re: What is the best option to get money for a business?
                    MoveForward Scout
                    Hi,
                    I own a Event Management Company, our organization industry understands the concerns vendors and sponsors now have within pre-payment or deposits. We are now working with the event participates instead of being firm with the registration fee. Ask the Event Show Management to pay your vendor booth fee and any show perks at the closing of the show. Be upfront with them as you were with your message here. Believe me you are not alone and right now any event or trade show is more than thrilled to have each and every vendor, sponsor, participate and attendees...we are hurting as bad as you are.

                    On the flipside (Fill the order you need funds)...you may want to do what we are doing. I was in your same boat. In the past we would create the event in full from florist to caters and then bill the client. A Special Event that entails 20,000 plus attendees can mean cleaning crew, set, staging, etc. all needing us to pay before providing service. Prior it was not a problem. Then when 911 hit and our industry fell due to no traveling, not to mention all the cancellations and bills we got hit with, I reorganized I had to change the way I did business. We now only and always take a deposit for the price it cost me to purchase anything up front. In most cases I simply take half of the total bill. So it someone orders a product from you and
                    you are selling it for 49.00 a piece and it cost you 24,00 to make then take a deposit for 24.00 to place the order.

                    One other thing I have one credit card I use only for my company when I have the same situation as you.
                    I know it i will be paid. And once it is I may place another big event on it. See about getting a business credit card.

                    Very Best to You...
                    Kimberly
                    • Re: What is the best option to get money for a business?
                      amspcs Ranger
                      You've gotten some pretty good advise so far,. particularly the one about asking your suppliers for
                      terms. If you have good credit as you claim, this is the obvious solution.

                      Also, again given good credit, shop bank loans. Yes I know, bank loans are hard to come by these days.
                      But that doesn't mean you shouldn't try. And if you have good credit, use that for leverage, offering your patronage in return for a line of credit.

                      Another possibility would be factoring your receivables. Do you accept credit card payments??--from your business description you provided it is obvious you certain should. If sou can factor those receivables.

                      If none of the above apply, there are many other private lenders you should consider. Drop me a line and I'll furnish you with some names and numbers.

                      AMSPCS
                      amspcs@juno.com
                        • Re: What is the best option to get money for a business?
                          anukshah Newbie
                          Thank you for your response.I do accept credit cards, but need the money to pay for expenses of going to shows and getting goods into the country. I must pay my suppliers for now before they ship out the goods. I have approached some banks, including the banks I have current accounts with. I didnt have much luck with them. Many cut back on their lending and requested I use my property and any other assets I have as collateral. If you have any names of lenders-private or any others that would be great,

                          Thanks again,

                          Anukshah <!--Session data-->
                        • Re: What is the best option to get money for a business?
                          AMPlady Newbie
                          Anukshah, Have you tried any of the micro-lending programs in your area? As far as credit goes, it's good if you don't have to use your personal credit lines; but for most entrepreneurs this is the easiest, least painful way of buying inventory and supplies.

                          AMPlady
                          assertmarketing.com

                          (p.s. If you don't have the "brick and mortar" costs that many small business owners contend with, you're already ahead of the game IMO. I'd just settle for one month's commercial rental payment!! )