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    9 Replies Latest reply on Jul 11, 2011 2:43 PM by Michold

    Need to find start-up financing

    CHEREX74369 Newbie

      Have local, home style restaurant business plan and have submitted to one local bank w/turn down received. Reason is: Poor past personal credit history r/t recent poor economy has led to charge-offs, slow pays, etc.

      Have been told plan is very workable, well thought out and researched, but past unfortunate credit history stops financing progress. Am continuing to refine plan and present to other banks.

      This business will fill in the jobless gap for me  that recent economic down turn has left me in. I have OK from landlord to receive turn key building and business, ready to start operation as a lease to own venture. Current building owner just wants out of building eventually and is willing to work w/me in lease plan.

      Please, I need help. Where can I get the financing!?!? I have the heart, mind and willingness to give what it takes to make this business successful, fulfilling dream of punching my own time clock and not someone else's!

      Many  thanks!

        • Need to find start-up financing
          phanio Pioneer

          Well, the answer to your problem seems very simple to me.  If you are being turned down due to poor credit - then fix your credit!  Based on what you stated here, everything else is OK - so, fix your credit!

          You can also pull in a partner with good credit to take the lead on the financing side or look to bootstrapping like tapping friends and family for a loan or investment - people who will not look at your credit.


          Bottom line:  If you issue is poor credit - then that is what you should be working on 100%.


          Good luck.

            • Need to find start-up financing
              Tim Jacquet Adventurer

              I agree. While you work on our personal credit, start building your business credit and sales. If you good credit -- business and person and some sales, you can get a loan.

              • Re: Need to find start-up financing
                atrium Newbie



                Trying to come up with $300,000 to get in the door of a good cash flow business, with seller carrying remainder (over 1 mil) until my husband and I have enough time under our belt in the business to refinance business & property.  Business grosses 9 million annually.  My credit is over 700, my husband's is just a little less.  Anyone know of creative financing options?  Banks require us to have down for financing everything.  Any feedback is truly appreciated.  Thank you very much for your time.

              • Need to find start-up financing
                Lunar Knight Wayfarer

                I understand Sam's Club offers small business financing plans up to $25,000 to those who qualify. Again, your credit is most likely going to play a role, but being the sister store to WalMart, maybe you'll get in with them. I don't know all the details or what the interest would be though, so you'll need to check out Sam's Club's site.


                Best of luck!

                • Re: Need to find start-up financing
                  Michold Wayfarer

                  The best way to get financing is to refinance your home - lol. Sorry just could not resist.

                  The best way I have found is to build business credit. If you do it right you do not have to have great sales or any of that, you just have to do it right. Of course if you do have decent sales the chances are even greater.

                    • Re: Need to find start-up financing
                      gboogieamerica_houston Wayfarer

                      Even with building business credit many companies are requring a pg.  Not saying it's impossible to get business credit with out pg but things are a lot tougher.   Please don't stop applying for business credit if you don't have a completed business profile.

                        • Re: Need to find start-up financing
                          Michold Wayfarer

                          Houston you mean "please do NOT apply ...if you do not have a complete business profile" ? 


                          I certainly feel that no PG still exists but you really have to have a business 'file' that is complete. Vendor credit, web listings & presense, maybe some public filings, proper type of business (what they call an SIC code). All this and more and you can still get business credit without showing tax returns or personal credit etc.

                          Requires more work but is well worth it since financing is hard to come by and deals (under valued assets) are a dim a dozen. Now if that is not worth a shot than I do not know what is !

                          Even Felix Dennis calls this "Onces in a lifetime circumstances that a reccession brings".

                            • Re: Need to find start-up financing
                              PiperE Wayfarer



                              Your profile says you are a student of business credit. I used to sell it. I say "used to" because it simply doesn't exist anymore.


                              You can probably still find a million little template websites that have been thrown up by "brokers" that swear they can get you business credit with no PG. Beware! If you are required to pay anything up front, turn around and run. They only want your deposit money.


                              I know there are suggested ways to build a credit file for your business credit, but now it takes years. Without a PG or evidence of a strong track record of sales, the best you'll get is a $1000 line of credit at some B2B vendor, like industrial supplies.


                              As long as one does not pay anything to anyone for any reason in advance, and one has lots of time to kill, apply to your heart's content.

                                • Re: Need to find start-up financing
                                  Michold Wayfarer

                                  Well the latest corp that I am building I just got a Staples card that did not check my personal credit (NO PG) and have a $2000 credit limit on it. Of course I can only use it at Staples but they do have gift cash cards (and I do have a Square-up device !! ). I also got a Shell card the same way - no PG. Notice that these two are backed by Citibank.

                                  This particular corp I have had for like 2.5 years and I have been building it rather slowly.

                                  We can both go through this back and forth all night but there is no point. Someone close to me does this full time so I am constanly updated to what is going on. Times are hard no doubt and they have changed dramatically. We all also know they will change again, even if it takes a long time. I just want to be ready in everyway.

                                  I will keep you updated. I think with this corp I will be in a position to apply for unsecured biz credit card (that I can use any place) in about 4 more monnths. Have a few more things to do with it. One of them is to use the Staples and Shell Gas cards as much as I can...and a few more things. Will keep all updated. Lets see. The way I figure, even if I do not get it straight away I can keep the corp active and be ready when credit does become more available.

                                  Don't get me wrong I am also perfecting my personal credit just in case. All credit can come in handy. Nothing like having financing in hand..

                                  .....just my opinion.