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    3 Replies Latest reply on May 30, 2008 6:29 PM by sansoo6

    Maybe Venture Cap, but how do I get a secured line?

    sansoo6 Newbie

      Over 20 years I have founded several companies. Two still operating, two acquired and one modest failure in the tech crash (learned from that one...). I have both self funded and raised venture capital in the past.

       


      I have another well developed effort, this one I like because it is a web based play (although distribution is asking for product) with all the standard pieces in place like patents pending, well developed branding, a professional ecommerce enabled website and a clearly definable niche market growing to about 1.9b in size within the 19b US coffee market.

       


      Giving up equity at this point feels premature as I am still establishing my cost per customer. Our customers subscribe to the product creating a repeating revenue portfolio and as soon as I get the marketing cost per subscriber nailed down, I can make an educated decision about taking growth capital.

       


      Meanwhile, how do I get real-estate secured (unsecured?) business line with a "C" credit score? My credit score improves every month but that 2001 tech crash did me a lot of damage.

       


      Thanks for you input.
        • Re: Maybe Venture Cap, but how do I get a secured line?
          DomainDiva Ranger
          If you are trying to get a LOC secured by property at this time you might want to rethink that and go VC. Banks are not lending money with property as collateral. (At least in the DFW area anyway).

          Since you already have VC experience maybe you can locate an angel investor for 2-5%.
          1 of 1 people found this helpful
          • Re: Maybe Venture Cap, but how do I get a secured line?
            Tracker
            Hi,

            Venture capital can dilute you (as you probably already know) as can other types of private equity investment which makes giving up equity too soon a pretty costly proposition. There may be some alternatives for you. One of my lending sources specializes in owner-occupied commercial real estate funding. Is this real estate a commercial building that you occupy / run your business from?

            Feel free to check out my profile and email me at DMlowery@AdducentInc.com to let me know about that, the type of business and if it is a re-finance I will need the current loan amount. I'll then run it by them and if they can help you will refer them to you.

            Dennis Lowery
            Adducent, Inc.
              • Re: Maybe Venture Cap, but how do I get a secured line?
                sansoo6 Newbie

                 

                I have done a pretty good job of self funding this venture to mature preparation for market, but I was thinking about leveraging some of the 200K equity in my home. I would be looking for 25-50K to support inventory and other occasional needs and would want to pay down and re-use the line as needed. Perhaps I should be looking at a straightforward second, or venture lending...

                 


                Thanks so much for you response!