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    4 Replies Latest reply on Oct 22, 2009 6:34 PM by weddingplannr

    Wedding, receptions and banquets new business

    weddingplannr Newbie

      I have started a new business in my area, it is one that has some competition, but the demand is very high. So far I have invested everything into starting the business, without loans, until now. I have depleted my savings and still need some things. I have applied at a few places for loans, but have not been successful, because my business is too new and the difficulty to predict what the total income will be per month for the next 6 to 12 months. This is a one stop shop place that couples are able to have their wedding and reception at the same place. The packages include setting up for the wedding and reception, ALL decorations, which include wedding, tables, chairs and cleaning up after the events. Couple can also add to the packages flower arrangements, sewing, cakes of all types, catering, rehersals, photography. All these things are items I specialize in, I have been doing wedding for 20 years, now I have decided to open my business. I do have free lance help, so I am able to do the orders myself and call someone if I do need help. I also have enough room in the building to have banquets, which catering is always available. I can seat up to 200 people in my building, so have the ability to host a large event.

       


      What I am in need of now is a loan to be able to buy table, chairs, tablecloths, some kitchen equipment, which I would like to lease. I am at a loss of where to turn now, since I have not been in business but for a couple of months. Does anyone have any suggestions for me?
        • Re: Wedding, receptions and banquets new business
          phanio Pioneer
          It sounds like you have a great busines idea and a need service in your area. Regarding funding - since you did not state how much you are seeking, I will make the following suggestions:

          If you need equipment - either to lease or purchase - try a non-bank equipment lender - many of these lenders or leasors - only deal in equipment and work with start-up companies - thus they have programs for you and usually less requirements than banks.

          For the remaining funds - have your tried micro-loans (non-profit compaines that work with new businesses that have been turned down by traditional banks). You can get up to $35K for a new start-up or upto $50 for an established business.

          There are also peer-to-peer social lending networks were memeber lend and borrow from each other - can get up to $25K.

          There is alway bootstrapping - using personal credit cards, home equity loans or car title loans or even getting aperosnal loan from a bank, credit card company or credit union and/or asking friends and family. Now these may be a little more expensive that traditional loans - but, if that is all you can get now. But, when your business starts to grow - then go back to the traditonal lenders (who will be more willing to take with you once you have a track record) take a loan with them to pay off your other loans - this is called debt management.

          Business Money Today
          www.BusinessMoneyToday.com
            • Re: Wedding, receptions and banquets new business
              weddingplannr Newbie
              Thank you for the input on my question. I am looking to obtain a loan in the area of 35,000 and 45,000. That should be enough to get what I need, then I when the business is doing well, I will be able to add to the inventory items, up grade the building and ect. I am looking just for enough to get started without going into debt before I have a chance to really get the business doing well. Any ideas of where I can get a business loan, I want to start putting the loans into the business name. I have a business plan, EIN number, state number and my LLC. It has just been very difficult to start getting these up and running.
            • Re: Wedding, receptions and banquets new business
              JasonTees Wayfarer
              If you are ok with used equipment, you might want to try a local auctioneer. Banks use them to repo business assets from restaurants and office setups. You might be able to get some if the items you need for pennies on the dollar. I've seen restuarant equipment that cost $100,000 new sell for $15,000 after the business failed only months later.

              Regards,
              JasonTees.com
              Distress Loan Advisors
                • Re: Wedding, receptions and banquets new business
                  weddingplannr Newbie
                  Thank you, I have already been able to obtain most of my business decor through auctions. I have been able to get things that were needed next to nothing. I am willing to have used things through other business, auctions, or used and returned items, as long as they are in working order. The problem is that now, I still need the loan to be able to move forward on the items that I deperately need. I am still running into the problems of several things, I just started my business, so I don't have 6 to 12 months of receipts, I have no business credit, that may be because my business is new. It has been very frustating to talk to someone and they tell me I need several months of sales receipts, when I have only been in business for 2 months and have just now in the place that I can have events. The other thing is that I am told I have no business credit, my question to all the lenders is that how in the world am I suppose to build up the business credit, if I can not do anything to build up the credit. My other problem is that when I have talked with loan companies, they want a large amount of money up front. Everything has been invested to start the company and if I had a large amount for money to pay up front, then I would not be needing a loan in the first place. Why can't these companies so, if we get you the loan, then this much money will be taken out right up front. It has been very frustrating.