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    4 Replies Latest reply on Jul 9, 2015 4:06 PM by michaelxh

    looking for financing

    merakib2015 Adventurer



      I am in start up stages for my business. I have a business plan,  I have all the documents needed, I have even found a manufacturer. I even have clients but my biggest challenge I am facing now is financing.  I work full time at a bank and I know the requirements I would need to meet to get a business loan but even thou I am LLC, I know that it would still go by personal records. My credit score is in 600's and I have student loans, one credit card and a car loan, which puts me over my income to debt ratio. Opening this business is my dream and I just don't know how to get financing to start the business. I am at stand still because of this problem. If there is any other way or any advise or direction I can be lead to please help!


      Thank you for all the help in advance.

        • Re: looking for financing
          Moderator Ilona Ranger

          Hi merakib2015. You came to the right place, I am sure we have some posters here that will be able to give you some great tips about your situation. Did you talk to the loan officer at your bank to see if there is anything they can do for you or if they have some tips for you?



            • Re: looking for financing
              merakib2015 Adventurer

              Thank you Moderator Iiona for responding. I have spoke to my manager who is also a loan officer. She did not have any other options for me but also the bank I work is very conservative and it would be hard to qualify for a loan with them. I have also tried SBA route for a micro loan but the only back does that in Columbia SC said i didn't qualify  due to where i lived so i am not sure what was that about. I am just looking for options that i may not know about. Thank you! 

            • Re: looking for financing
              Moderator Rebecca Guide

              Hi merakib2015, it sounds like you have a well thought out idea, and have covered nearly all the bases on your way to starting a successful business, except for the financing.   Have you thought about approaching an investor?  Due to shows like "Shark Tank" more and more investors are willing to take chances on well thought out businesses if they are convinced that there is a benefit for them to do so.  Our experts at Touchpoint have put together a great article that gives some tips on how to explore that option at What to Keep in Mind When Approaching Investors.


              There are also other avenues, such as microloans or crowd funding, which you might wish to pursue.  Steve Strauss, one of the world's leading experts in small business, discusses the options at:  Six ways to get your business funded (Part 2 of 2)


              I hope you find these options helpful! Please be sure to let us know how you decide to proceed.




              • Re: looking for financing
                michaelxh Tracker

                Hey there Merakib. If you work at a bank, you already know the bad news: banks almost never lend to businesses that are just starting out. SBA loans are great for small businesses, but you typically have to be around a bit before you can get those. You do have some options, but none of them are perfect.


                A lot of small businesses start out using their own money, borrowing from family, or putting their home or retirement account on the line. You say you already have clients lined up, in which case Invoice Factoring is an option. You get an invoice from a business, turn it into a factoring company and they can give you money up front on an invoice that's due in a few months.