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Zilly | Tue Jan-30-07 07:58 AM |
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"How To Get Funded!!!"
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My fiance wants to buy into an existing business (beer distributor).
He has been turned down for a loan from PNC bank and also the SBA.
Is there another way to get a loan to buy out the partner or to even start one of his own? Telecommuting Database www.GopherGetters.com
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#1. "RE: How To Get Funded!!!"
In response to Reply # 0
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Banks are known for turning down start-up business unless you have a long term relationship with someone at the bank. If he doesn't have one, he needs to start building a relationship now. Find someone who is going to take care of him and his needs.
The SBA is more likely to give you a loan than your fiance (unless he is some minority status). If there is a way for you to go into business with him and you be majority owner, you have a better shot with the SBA.
The other poster brings up good questions about family and friends to borrow from. Can any of them help? Do you have a house that you can borrow against? 401k money or something?
Obviously this is an already established business. Does your finance already own part of the business and he is trying to buy out his partner? Or is he just trying to buy this business?
I am happy to speak with you and/or your fiance off line if you are interested.
Suzanne SHB Consultants, Inc. www.newbiz-coaching.com Check out our E-book the "Entrepreneurs Handbook" SHB Consultants, Inc.
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#2. "RE: How To Get Funded!!!"
In response to Reply # 1
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What was the reason your fiance was turned down for the SBA loan?
Their basic qualifications are that you must bring 20-30% of the required start up cost to the table yourself and you must have applicable experience in the industry that you are going into.
Being a minority has nothing to do with qualifying for an SBA backed loan. You can be a minority with multiple disabilities it won't make a difference. That's not how they work.
Since this is an existing business, perhaps the numbers didn't look appealing?
Did he have a solid business plan? That is another essential element to meeting the qualifcations.
He should meet with his local SBDC counselors (Small Business Development Center found in many local colleges). They can offer excellent advice (for free). Also see my site below for more ideas. Sylvia http://businessplanmentor.com Business plan and start up resources
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Zilly | Wed Jan-31-07 02:56 PM |
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#3. "RE: How To Get Funded!!!"
In response to Reply # 2
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He filed for bankruptcy 9 years ago...the bank told him he has one more year before anyone would touch him. He tried for the full amount and 10% of the amount, in which the co-owner said if he could come up with $40,000, he'd lend him the rest.
It's an established business, one of the co-owners are selling his share.
However, his credit is in perfect standing other than the black mark from the bankruptcy. My credit was ruined by my ex-husband and will take years for it to be fixed.
Are there any grants available, anything? Or are we s**t out of luck?
Telecommuting Database www.GopherGetters.com
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#4. "RE: How To Get Funded!!!"
In response to Reply # 3
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Grants? No, not available for what you are looking for. The very few grants that are made available to for-profit businesses are usually very small ($500-$1500) and the competition is unbelievable. Don't waste your time or resources going down that dead end.
With both of you having serious credit issues, you likely won't be able to get a traditional loan. There are still options out there if the total amount is not outrageous. $40,000 sounds like the minimum he would need?
Realistically, it's going to be a long shot. I offer some other options in my start up kit below. Sylvia http://businessplanmentor.com Business plan and start up resources
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Zilly | Thu Feb-01-07 01:43 AM |
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#5. "RE: How To Get Funded!!!"
In response to Reply # 4
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Thanks for your advice.
But we got that e-book for free from the state of PA. Telecommuting Database www.GopherGetters.com
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#6. "RE: How To Get Funded!!!"
In response to Reply # 5
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>Thanks for your advice. > >But we got that e-book for free from the state of PA.
What ebook are you talking about? Sylvia http://businessplanmentor.com Business plan and start up resources
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Zilly | Thu Feb-01-07 06:53 PM |
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#7. "RE: How To Get Funded!!!"
In response to Reply # 6
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The one you had just advertised to me. We have every bit of that information in the e-book the state of PA sent us.
I'm also a certified small business owner and have a BA in Business Management. I was just wondering if there were any kind of hidden sources that we could quite possibly get funding from. But, as my education proves, there are none. Sorry to waste anyone's time... We were just looking for more $$. And was hoping to find out if anyone knew another way of getting start-up money aside from the SBA and the banks.
Thanks Telecommuting Database www.GopherGetters.com
Visit the Discussion Forum for free job leads!
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#8. "RE: How To Get Funded!!!"
In response to Reply # 4
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>Grants? No, not available for what you are looking for. The >very few grants that are made available to for-profit >businesses are usually very small ($500-$1500) and the >competition is unbelievable. Don't waste your time or >resources going down that dead end. >
Unfortunately that isn't true. I personally know of one grant program for those that want to start their own business that awards $20,000 in grant money (to more than one recipient) HOWEVER this program isn't for those that want to buy an existing business.
Finding funding to buy an existing business will be more harder but not impossible.
Rose Grant Basics 101 http://grantbasics101.bravehost.com/grants.htm
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#9. "RE: How To Get Funded!!!"
In response to Reply # 0
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#10. "RE: How To Get Funded!!!"
In response to Reply # 0
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You might want to check with the microenterprise initiative offices in your state. Here in Nevada we have 3 of them, 1 in Reno, 1 in Carson City, and 1 in Las Vegas. They are part of the national microenterprise system, and you can get small start up grants from 100 to 10,000 dollars for start ups for new or existing business acquisitions.
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#11. "RE: How To Get Funded!!!"
In response to Reply # 0
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Oh yeah, in order to qualify, it is REQUIRED that you have been turned down by a bank &/or the SBA. So your turn downs actually help you. Your credit problems aren't too much of an obstacle with the microenterprise initiatives as long as you don't have any IRS tax liens
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