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    5 Replies Latest reply on Jul 9, 2008 9:00 AM by LUCKIEST

    Looking for a loan to expand Digital Photography business

    digitalcamera Newbie
      I am a Value Added Reseller focused on selling high end digital camera systems to professional photographers, in house graphics, printing companies, and advanced hobbyist. I have been in business for 20 years this May. I have had as many as 5 employees in the past, but for the last 4 years I have been more conservative with only 2 including myself. I have been a BOA customer for 15 years and I have tried to get a SBA loan or line of credit for the last 4 years. I have been told that the reason has been based on the fact that I am the only person in the company generating the sales. I own all of my equipment and RV for the business. I currently rent an office and studio.

      I am seeking a loan or capital to purchase more equipment to generate more volume. I find myself having to tell customers that I cannot help them because all of cameras are rented or being used. I have the demand to create more profit but taking my company to the next level has been difficult. I would also like to expand my sales force but without enough capital I find that my cash flow will be too strained, this is what I have learned over the last 20 years.

      I currently have weak personal credit due to poor cash flow in the business. My business credit is okay. I was able to get a equity line from BOA 2 years ago but I have not been able to get anything approved since because of FICO. I used 99% of the equity line to renovate my home leaving the business with no cushion. I have tried to increase that but I have also been turned down for that too. I have a lot of equity in my home but the rates are so high because of my FICO I am afraid I will not out run it.

      I have had the same accountant for 10 years and he feels I should be able to get BOA to do something for me. I use QB for 10 years and I can see a trend for the last 5 years. The same sales volume with about the same profit. I have had a hard time trying to increase the volume because I do not have enough equipment on hand. I have a budget prepared for 2008 in QB. I have looked at leasing equipment in the past but because I am the dealer for the products I find that the interest over 3 years and then the buyout is just too expensive. I have also found that going to visa merchants for capital loans on future sales is 30% interest or higher. So I have ruled out either of these. In the past I did some AR financing and I have the profit margin to do this but most of my sales are done with small companies that do not qualify for approval. In most of my sales contracts I do not offer terms, I require a deposit and balance on delivery. I do have to take PO from large companies, state and gov agencies, and banks and leasing companies that are financing the equipment.

      I am seeking a loan product that can be secured with assets and or PG. In advance thanks for your advise.


      Chris Snipes
      Image Productions, Inc