Question: SBA Loans or Angel funding?
- Thread starter mcboob
- Start date
SBA SOHO Loans are pretty easy to get. When I was looking for cash, I used business credit cards and a SOHO loan. You can put $100k together pretty quickly if your credit isn't terrible or you have a partner with decent credit.
Unless you have a track record of making money or you're in a network of people with money, it can be hard to attract investors early on. Someone else may have more info on that though.
Unless you have a track record of making money or you're in a network of people with money, it can be hard to attract investors early on. Someone else may have more info on that though.
I'm actually in that position right now... I'm looking for angel funding. The previous poster is right on the money! Sometimes you have to go to family and friends to start a business or ask for help (SBA)
I've found that you need to be in business making money for 2-3 years before an angel investor will look at you. Which is more than understandable, when you look at the fact that they are taking just about ALL of the risk. You need to have good referenceable clients, trade references, and you books need to be str8. Until those components come together, you will need to look at a SBA loan as mentioned earlier.
The SBA would be a good bet but there's been a change in banking rules so it might be harder to get loans if you can't prove income. If your credit card has a good limit, start small, use what you got, build a record. If you have community organizations get involved, meet people, network. Last but not least start writing your congressman and senator, try to get to know them and go to city council meetings speak up, make a name for yourself. In a year or so things will look different.
I have never received money from either but have done extensive research on both. I can only echo what has been previously said, it depends on what stage your business is in. Hell, in SBA the money is there. I personally feel you need to know you are going to borrow it before you even know you want a business. Don't mind me, go to score.org and they may be of some assistance.
Now as far as angel investing goes, it is a much more intimate and personal process. You are dealing with people that are part investor part gambler and ALL game. If any one allows you to present, likes your presentation and tells you they want to follow up, it is usually serious and from what I hear, not much waiting. Power Point gotta' be tight though, you hear me? If you serious, check out this site gatheringofangels.com. I like how they do things.
That's my wooden nickel.
Now as far as angel investing goes, it is a much more intimate and personal process. You are dealing with people that are part investor part gambler and ALL game. If any one allows you to present, likes your presentation and tells you they want to follow up, it is usually serious and from what I hear, not much waiting. Power Point gotta' be tight though, you hear me? If you serious, check out this site gatheringofangels.com. I like how they do things.
That's my wooden nickel.
It depends on what type of business you are doing and your level of expertise.
An Angel Investor is not going to be interested if you are planning to open up a franchise, barber shop, etc. If you are doing something with technology, bio-tech, something that has the potential for revenues to grow exponentially over a few years ........go for it!
But the SBA is probably going to be your best friend. Go talk with one of the counselors at your local SBA office and find out what programs are out there for you.
An Angel Investor is not going to be interested if you are planning to open up a franchise, barber shop, etc. If you are doing something with technology, bio-tech, something that has the potential for revenues to grow exponentially over a few years ........go for it!
But the SBA is probably going to be your best friend. Go talk with one of the counselors at your local SBA office and find out what programs are out there for you.
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