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    4 Replies Latest reply on Jun 30, 2008 6:51 PM by sodaman

    Loan or Line of Credit for New / Existing business

    sodaman Newbie
      I don't know the character maximum here, but I'll try to explain my situation. Any help would be greatly appreciated. I have a business that is about 3 1/2 years old. About 2 months ago I "sold" it to the company I now work for. I am being paid by the profits from my own company as well as a salary from the new company. The company I built billed about $17,000 last month in service revenue which resulted in a $4,700 profit after payroll and expenses. I am looking at the possibility of "unselling" my company (which is allowed under the terms of my acquisition agreement) and trying to grow the business nationally. Currently, I only service the San Antonio, Austin, and Houston areas of Texas. I have moved to Tampa, FL and would like to start servicing here as well. To make a long story short, I figured I would need about $25,000 in startup cash to get the necessary equipment (digital cameras and computers) as well as to afford employees for about 3 months here in Florida until I feel I can cover all expenses with my profits from Texas.

      I have looked into the SBA possibilities, and have even taken a few of the online courses to help me. My problem is that in the current state of my business, since the books are controlled by the acquiring company, I don't have access to a detailed P & L report, I only get a standard report that shows the profitability and therefore how much I am owed. Without these reports, I am finding it difficult to be able to prove to a financial institution that I am a viable business and can pay back the loan. At the same time, I don't want to take back my business until I am assured that I have the financing necessary to go to the next level in FL. Seems kind of like a vicious cycle where each step depends on the other step being completed and so I can never break free!

      Any ideas out there? Should I attempt to start a new company and write a new business plan based on my previously successful model and then attempt to get Start Up capital? I assume that it is easier to get financing when you have an already profitable business than it is to get new startup money, but I may be wrong. I've seen some smart posts on here and I am very thankful in advance for any assistance anybody can offer.

      Josh

      P.S. - the company that I "sold" but want to take back can be found at www.sodaauctions.com