Help With Start Up Financing

[Machete]

Need a lil help from the fam. I am currently in the process of starting up my own biz. Quit my job a week ago to spend time doing research, and to try to prepare myself. I've discovered that I'm going to need a little financing to get started, 10,000 to be specific. I need seven thousand for necesities, and three thousand cash on hand. I have been canvassing banks in my area, finger-walking, and I'm getting stone walled. Each bank says that a business has to be in operation for two years to qualify for loans (I'm in NY state). But, if I need a loan in my second year, it means that I'm doin something wrong. I wanted to know if anyone to point me to the right agency or bank that offers start up financing. Links would be appreciated, but i don't need that. I just need a name or a good place to start.

 

[DIH]

ok let me lay it down to you from my personal experience that I am STILL going thru right now trying to get my startup fully launched.

1. You FUCKED UP by quitting your job. I dont know what type of job you had nor how much you made a month
2. You will NEVER get funded by a bank for startup money
3. You NEED a BUSINESS PLAN
4. You need CONNECTIONS to people (friends or family members) that have CA$H they may or maynot be willing to LOSE.
5. You need to be PERSISTANT in begging your friends and family members for CA$H
6. An Idea that I came up with for funding is to sell shares in your company, or in my case I offered a few % interest on the money they loaned.... offering interested investors REASONABLE amount to put in ie $100,250,500,1000 You will have to offer a high rate of return ie 10-30% every couple of months = about 10-30$ per month interest paid out every 3 month or if they are cool investors every year. The latter is perferred but you need to make sure you are putting money aside for them or you will be fucked. REMEMBER TO PUT THIS ALL ON PAPER TOO.

7........v
"I have been canvassing banks in my area, finger-walking, and I'm getting stone walled. Each bank says that a business has to be in operation for two years to qualify for loans (I'm in NY state). But, if I need a loan in my second year, it means that I'm doin something wrong."

>>> your best best is gonna be to use your personal credit... ex go into the bank like you are trying to get a car loan or try and get some money off your mortgage. unfortunately for me being 25 I dont have any resources like a mortgage, nor does anyone in my family have any $$$.

For some damn reason I have yet to find out (maybe its because cleveland is such a bad job market & highest unemployment rate best u can get out here is 5.15 unless u know somebody (alotta places talk that 7.50 shit but only give you about 25-35 hrs at best which is an effective 5.15 give or take a few bucks)) even if you a hard worker... in fact as dumb as this sounds if your a hard worker they dont want to put you on because they are somehow afraid you are gonna take their jobs. Never understood the dumbed down workforce theory. I cant get employed for anything above 8$ because I only graduated high school and had to leave college due to financials, and I am mostly SELF TAUGHT I bought tons of books and read them. (I like to call it the ghetto MBA)

so I have had to rely on my internet marketing prowess to generate enough cheese to get by unfortunately because Im living off my dough it makes it really fucking hard to save but I still manage to save a lot by scrimping by.

gotta do what ya gotta do to survive.



8. THERE IS NO EASY WAY TO GET FUNDED THIS SHIT IS HARD WORK AND YOU HAVE TO BE BUILT FOR THIS.... ITS NO JOKE!!!

If it was as easy as walking into a bank and getting funded... everyone would have done it already.

You may be able to get a grant but because my business is "adult in nature" that wasnt an option for me but you need to hit the streets.... the data and just gonna magically appear buy postin on bgol fam I know why u posted thou

Let me know if you need any more words of wisdom

 

[T_R_O_N_I_X]

This website might be of some use to you.

http://www.gobignetwork.com/​

 

[Temujin]

One of the biggest mistakes of any new business is undercapitalization. Lenders are really simple they all pretty much use the same formula. They want their loan secure. Start-up companies that are not going to spend their loan money on securable equipment are usually hard to get funded by a bank.

Here are some factors that banks look at that will help you.

1. Assets - What are the company assets, does the company own anything that can be attached or used to secure the loan.
2. Financial history - they are going to want financials for the company, because you don't have a track record it's hard to prove that you are going to be able to make enough profit to pay back the loan.
3. Credit - personal and company - how well you pay back bills.
4. Personal investment of the owners - do you have any "skin in the game" as they say. Have you personally invested in the company and to what extent. Banks will not lend to a company who's owners won't even lend to the company.
5. Business plan - Really banks don't give a fuck about a business plan it's usally just a checklist for them. The only thing of importance for them in the plan is the type of business and the projected earnings.

So to approach a bank you want to have all these areas tight in order to improve your loan chances. If you have any personal assets that you are willing to risk transfer them into the companies name. (assuming you own 100% of the company). This will improve the asset base of the company. You don't want to move assets unless the asset has some owner equity. If you own real estate (other then your primary home) you can use that. Open a bank account (in the company name) and start depositing money monthly no matter how small. This will also establish financial history.

Now for me I always want to borrow the cheapest money first so these next options are usually more expensive but if you are in need for some quick cash they work.

1. Factoring - if your not familiar with factoring, factoring companies give you short term loans secured by your receivables. In order to get factoring you are going to have to have some contracts and receivables that are assignable. Factoring is good for companies that are growing and have 60-90 day waits on receivables. Factoring is a good temporary cash flow fix. They usually don't require financials or a business plan. They just want assignable receivables and an owner who will guarantee.

2. Venture capitalist - these are independent lenders who want to invest short term in companies for a fee. There are two major types. Lenders that want equity and lenders that want security. If you don't want to sell a part of your business most venture capitalist are going to want some sort of security. Similar to a bank they want a securable asset however they are not going to be worried about financials as long as they know the loan is secured. These lenders are often hard to find and it will take a bit of networking.

I would suggest hiring a CPA that is well respected in the field and the location you are. They will not only be able to help you with your financials and business plan but they should know of the major private lenders in your area.

Hope this helps.

 

[BigATLslim]

Ok, bet. Tell you a story. I got a mentor in the D.C. metro area. Showed him my business plan, right. He read it and put in the trash. Loved the business plan but it didn't mean shit to him. This is what he said, "A business plan is just paper to me. Nobody is going to fund your dreams." I felt him but I was like damn, ambition and knowledge don't count for shit.

So, you gotta find some way, as fam said earlier, to hit up friends, family or people in your network for money. You have to build credibility. Now, I am still a little stubborn. I give out my business plan because everyone does not think as my mentor but that nigga is paid as hell and I tend to do as he says. When I do deviate, I go here:

http://www.businesspartners.com/ and http://www.gatheringofangels.com/

These sites are not the end all to your problems. Social networking and angel investing are not talked of to publicly but these are really ways for you to get funded. It will take some work but hey, you lookin' for alternatives there go a couple.

What you can also do is go to your local Chamber of Commerce and ask is there anything they can do. They will probably point you in the direction of the SBA. If they do, get all the info you can. If they don't, do the same. In either case, make sure you ask about their SCORE program. I found their counselors to be very helpful.

By the way, my mentor has business grade credit but ain't used a bank in over 30 years. So that goes to show you how much "mainstream" financial institutions will fuck you into thinking you need them. NO, you need niggas that got bank money without bank regulations. Now go network, fam.

 

[neo_cacos]

Ok, bet. Tell you a story. I got a mentor in the D.C. metro area. Showed him my business plan, right. He read it and put in the trash. Loved the business plan but it didn't mean shit to him. This is what he said, "A business plan is just paper to me. Nobody is going to fund your dreams." I felt him but I was like damn, ambition and knowledge don't count for shit.

So, you gotta find some way, as fam said earlier, to hit up friends, family or people in your network for money. You have to build credibility. Now, I am still a little stubborn. I give out my business plan because everyone does not think as my mentor but that nigga is paid as hell and I tend to do as he says. When I do deviate, I go here:

http://www.businesspartners.com/ and http://www.gatheringofangels.com/

These sites are not the end all to your problems. Social networking and angel investing are not talked of to publicly but these are really ways for you to get funded. It will take some work but hey, you lookin' for alternatives there go a couple.

What you can also do is go to your local Chamber of Commerce and ask is there anything they can do. They will probably point you in the direction of the SBA. If they do, get all the info you can. If they don't, do the same. In either case, make sure you ask about their SCORE program. I found their counselors to be very helpful.

By the way, my mentor has business grade credit but ain't used a bank in over 30 years. So that goes to show you how much "mainstream" financial institutions will fuck you into thinking you need them. NO, you need niggas that got bank money without bank regulations. Now go network, fam.

Listen to Slim dawg...!
And one more thing...don't forget to look at the gov. websites , you might be qualified for some kind of small biz programs.
Good luck.

neo

 

[mr_mantel_216]

This is why i like this forum, always on point. The above pointers are really great ways to start, but like DIH said - It aint gon be easy. Ive got two solid plans and im still tryin to get that jumpstart capital. Best of luck and thanks to all who replied.

 

[DESHAUN MICHAELS]

try these

startupjunkies.org (check out the descussion forum: top right)
and
prosper.com

 

[mrjones]

You can find a way fam. Where there is a will there is a way. The KFC dude (Colonel Sanders), got turned down a thousand times before he got his business off the ground. Stay focussed, work hard, don't let your dream die, and it will happen for you. The toughest thing to do is start. Good luck fam. I wish you the best.