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    4 Replies Latest reply on May 11, 2009 10:16 PM by phanio

    Best way to finance $50K?

    proresource Adventurer
      Our business is in beta, getting ready to launch. I'm looking for some working capital to cover the expenses over the next couple months. $20K might be enough, but I'd like to get $50K just in case. I'm trying to figure out the best way to do it.

      I'm thinking that a line of credit might be the way to go.

      I have two business credit cards from the other business I have been running for 14 years (a marketing and PR firm) that get paid off every month. The credit lines on those is high enough that I could put it all on there, but I'd rather get lower interest rates if I can.

      I could also do a line of credit on our house. My credit is pretty solid.

      Does anyone have any advice on which way to go?

      Some background on the business:
      We provide virtual teams to entrepreneurs who want to take their business to the next level. We provide marketing, sales assistance, administrative help, bookkeeping -- all those things that take you away from the fun parts of the business. We do it "on demand" so you only pay for what you use.

      It is basically an extension of our existing business, except we are offering more services than marketing and PR, and our target market is any kind of entrepreneurs instead of small software companies.
        • Re: Best way to finance $50K?
          LUCKIEST Guide
          Best way to finance $50K?? Welcome

          There is NO best way. There are many options and you all ready named two.

          Tell me more about this business in "beta". How soon will it be launching??
          *Is it in **Arlington County, Va?? Do you have a Business Name*??
          Have you developed a Business and marketing Plan??

          A line of credit is a way to go. Also if you have had credit cards for many years (14)
          and you call the credit card companies and talk to a rep, there is a good chance
          that they (the C C Co) will lower the interest rates.

          Good luck, LUCKIEST
            • Re: Best way to finance $50K?
              proresource Adventurer

              We are about a month away from generating revenue; 2-3 months from launch.

              The business is in Fairfax county (Virginia). We have a business name, have registered as an LLC, have an EIN, have a merchant account and payment gateway, and a website at www.proresource.com.

              We have about 10 people working in the business, mostly from the marketing & PR firm. Everyone is part-time right now. We have additional staff lined up, and have created partnerships with other companies that will allow us to scale quickly.

              I have all the pieces for a business plan; I could put together a formal plan in about a week. I assume I'll have to do that to get any kind of loan.

              Since the strongest part of our background is marketing and PR, we do have a plan that I believe is a pretty powerful one.

               


              Given all of that, do you think a line of credit is better than a loan? And would it be better to get a business line of credit or get one on the house?

            • Re: Best way to finance $50K?
              phanio Pioneer
              There are many options for you - most are non-bank options. Please visit our website - we provide informaiton and resources for business capital - not cost to use our website.

              Business Money Today