How do you fund a startup with (virtually) no collateral?
October 8, 2009 10:51 AM Subscribe
I need an SBA loan yesterday. My business is in startup mode, I'm already fielding new orders, but I need startup capital to get this thing off the ground.
posted by ohyouknow to work & money (11 answers total) 10 users marked this as a favorite
To keep this simple I won't go into great depth about my business model. The short version is that this is what I've been doing for the past 5 years very successfully, I was the one driving the business where I was at previously, and all of my former clients have been calling me for assistance. But in order to make this work I need about 35k in capital and I have no collateral. I do have excellent credit, about 30k in untapped credit, and of course my 401k... but I really don't want to touch any of these things. Each time I model out my plan I anticipate (worst case scenario) that I will be out of debt by month 4. But how do I get to month 4 without cash?
I live in San Francisco and have contacted the SBA here, but it's a long process. There is one organization that had me fill out a one page form online for an "instant SBA" and I was summarily rejected (because I don't have collateral, which I thought wasn't supposed to be an issue for an SBA, but I digress).
I know SBA applications are way up and banks are more hesitant than ever about granting them... so any guidance you could give about how to proceed would be much appreciated.
And feel free to MeMail me if you'd like to know more about the specifics. Thanks in advance!