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    4 Replies Latest reply on Dec 1, 2015 6:58 PM by LUCKIEST

    The Art of Getting a Startup Business Loan

    off2thegym Adventurer

      I line up the sights on my target, months of preparation for this one shot. The air is calm, everything about this moment feels perfect, "How can I possibly miss?" I ask myself. Deep breath in... slow breath out...

       

      This has been my experience so far trying to startup my business. Here I am, 10 weeks of hard planning, hours of research, and 3 weeks preparing my business plan. I've found my location, I have my T's crossed and my I's dotted. Take my business plan to the bank... denied.

      I should've saw this coming a mile away, I should've known not having any collateral would hold me back. I should've known my less than perfect credit score would hinder my goal. Here I am, location set, members ready to join, and I can't even get a 34,000 dollar loan through my bank in which I've paid off 3 cars with and starting on my fourth. I'm so close, everyone is waiting on me.

       

      I'm here because I'm looking for help/advise. I'll be honest, I don't need a link to an article about what to do, I just need a light at the end of my tunnel! I know my business will be great, I know it will succeed, I just need a chance... that one shot. If not my local bank, then where? Who? Why is getting a startup loan such a pain without collateral?! I've financed cars for this amount no problem, I don't get it.

       

      Thanks for your time.

       

      - J

        • Re: The Art of Getting a Startup Business Loan
          LUCKIEST Guide

          Welcome to the community. We are here to try and help you and hopefully advise you..

          I would like to know more about you and your background,.

          Have you seen the T V show "Shark Tank"??

          What do you needs the funds FOR?? and for how LONG??

          Do you have collateral??

          The more you share, the better our advice.

           

          LUCKIEST

            • Re: The Art of Getting a Startup Business Loan
              off2thegym Adventurer

              Thanks for the reply Luckiest! I have seen the TV show, love it.

               

              My background, I'm 27 years old and a Department of Defense federal employee for the Air Force and also a member of the Air Force national guard. My income is a little over 66k a year. I'm also a part-time CrossFit coach (which is what my start-up is for, my own CrossFit gym) that pays for my membership only each month. I'm not married and have no kids... unless you count my dog.

              My less than prefect credit is due to screw-ups with my student loans (I owe around 25,000), which I'm working toward getting under control. Also, a couple of medical bills that slipped the cracks on me, which I've recently paid off.

              For collateral, I don't own a home, just have a downtown apartment. I don't really own a lot that I would consider collateral worthy, I have an SUV that's paid off valued at around 3,500 and a car valued at around 25,000 that I owe 19,000 on, which I'm currently trying to sell for extra start up money.

               

              I need the 34k broken down into the following areas:

               

              26,000-  For the actual gym equipment

              2,000-  For coaching certificates to train two coaches

              1,000-  For reserve funding to train an additional coach for expansion

              5,000-  Miscellaneous (this money will go toward general supplies and initial maintenance for the building)

               

              I would ideally like to have the loan it paid off in 6 years. Although, since it will not be my main source of income because I'm keeping my current job, I hope to have it paid off sooner.

            • Re: The Art of Getting a Startup Business Loan
              Moderator Rebecca Guide

              Welcome to the community off2thegym!   It sounds like you have some great ideas, a good business plan and are ready to go - except for funding.  I'm not sure what avenues you've already checked but, if you haven't already, I'd highly recommend getting in touch with someone at the Small Business Association (sba.gov) or S.C.O.R.E. (score.org).  Both of these organizations have a lot of great info about grants and loans that you may not know about.

               

              As a veteran, you have other opportunities available that you might qualify for as well. You can find some great links to organizations that may be able to help you at Seven Resources for Veterans Starting a Business.

               

              I'm looking forward to hearing what advice our other members may have for you, as well as following you in your journey to opening your own successful gym.

               

              I hope you have a great Thanksgiving, and wish you the best of luck in your quest for funding!  Please be sure to stay in touch and let us know how things are going!

               

              Cheers,

              -Rebecca