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    8 Replies Latest reply on May 29, 2012 6:01 PM by Start-Business

    Start up finance blues

    Dave11 Wayfarer

      So: We are a start up distillery in SC.  We're a chartered LLC.  Been in this start-up process for now 12 months . We have undergone the following processes, steps:


      --Score counselling with two seperate offices, several counselors for both

      --Comprehensive business planning, including and especially cashflow and financial projections

      --mark development, trademark processing, business location establishment (leasing contigent on loan)


      Our loan needs is incredibly small; <$100,000.  We're bringing $80,000 to the table in cash.  Our ratio is solid.  We have ample personal collateral (homes) to secure any loan of this size.  We have good credit.  We are of good character and have both started businesses before.  The loan is for FF&E. 


      We have applied to now 4 banks, all under SBA loan programs.  The packages have been complete; the documentaion clear and unambiguious.  We have been turned away repeatedly and it is mind boggling to consider how this can happen.  Despite being a startup in a niche industry, it is amazing that we cant even secure SBA lending - we're over collateralized and if i were looking at this deal from the other sode of the table it'd be a no-brainer. 


      Question: where next?  The banks are apparently not interested in this opportunity.

        • Re: Start up finance blues
          crafts man Adventurer

          I seem to be in the same situation Dave11, I am only looking for $30,000 and putting $30,000 in myself and prepared to use home as collateral, and the banks do not want to seem to know. The country will never get moving again if small businesses cannot start up, and start to employ people.

          • Re: Start up finance blues
            LUCKIEST Guide

            Dave, I can feel your frustration.


            Does the distillery industry have an association, a trade organization.


            Can any of the wine or liquor companies help with start up costs or inventory??


            Good luck, LUCKIEST

            • Re: Start up finance blues
              jaybally Adventurer

              Greed is the reason for a qualified entrepreneur like yourself not being able to launch, and the solution to this malaise in the credit markets is innovation.


              We have taken a small step in helping businesses owners achieve the goal of opening shop.  All over America - right now, there are aspiring entrepreneurs who need that last push.  They need that last bit of funding / help to get them from the planning stage, to the execution phase.  Clearly, the banks are not budging.  What we have done is designed a product that will help some entrepreneurs in this position, but not all.  It's rooted in common sense and not rocket science.  As a direct processor we have been to create a split funding finance arrangement as a direct credit card processor, which would allow for an aspiring business owner to purchase FF&E - to be paid back by their future credit / debit card swipes. 


              We work with aspiring entrepreneurs to come to terms with suppliers and carefully underwrite deals so that a business owner can obtain the equipment they need to open and operate, while creating a framework for vendors to be protected from default.  It's simple; I give you a product to open your business - you pay me back each time you swipe a credit card in your new business until the cost has been captured in full.


              If this can be of any help, we'd be glad to hear from you.  We work hard to educate suppliers / vendors as this is new.  You would not be alone in selling yourself, your business, and its merits. Feel free to click my name for more info!



              • Re: Start up finance blues
                wolf29 Adventurer

                I'm sorry to hear about your troubles with the banks. We've been there as well with our online dog business and trying to secure some loans. We did find some help with a site called that helped with loans and grants however.

                • Re: Start up finance blues
                  Start-Business Wayfarer

                  Dave11 wrote:


                  Our loan needs is incredibly small; <$100,000.  We're bringing $80,000 to the table in cash...


                  We have applied to now 4 banks, all under SBA loan programs...we're over collateralized...


                  The banks are apparently not interested in this opportunity.


                  Why are you seeking a loan from the most conservative providers of funds in the market? If you're such a sure bet and can provide a return greater than 1.15% APY, which is what banks are paying depositors today, then why haven't you looked at people with CD's that are turning over and may be willing to fund your FF&E expenditure for a greater return than that offered by their own banks?