Where can I get a $20,000 loan or line of credit for my start-up business?
Sep 20, 2009
in
Business Line Of Credit
I’ve gone through the calculations and this is the absolute minimum I can use to just scratch by for starting up my business. Does anyone know where I can get this money? I will not be able to start repayment until at least three months after start up.
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4 comments
Brett on September 20, 2009 at 2:13 am
Since it is under $30k you can try Prosper – an online lending community…
http://www.prosper.com/join/lunyc
They are not some shady loan shop- and they have been featured in the New York Times, Money Magazine, etc.
I first read about them in Money magazine – pretty cool idea, people get together and combine their money as a community into making a single loan.
I have used them for a loan to start a small website (and pay down some high paying interest)- you will have a much better chance of getting a loan than with a bank – and probably at a much lower interest rate.
Right now I am paying 10.5% on a 15k loan- not too bad IMO. You can take loans out for up to $30k I believe.
Make sure you make out a nice profile, and come up with a fun/interesting/sob story background to make yourself look trustworthy – it will help you improve the chance that people will bid on you (oh and a photo always helps
)!
Try to join a group as well – it can help lower your interest rate. Don’t forget Prosper checks out your credit history, so you won’t be eligable for lower interest loans unless you have a great background – but you can always take a higher % rate, it will probably still be lower than a bank loan (if you could get one…).
Even if you have bad credit what you will get from the Prosper community will likely be much lower than you
will get elsewhere – and it will be a secure, safe loan – not some underhanded ‘get hit with 50% suddenly’ loan shop!
You can also loan out money to help others on the site. Not only will you make a pretty good return, butyour risk is fairly limited- and you can screen each applicant and choose which people you want to lend to- I have not done this yet, but I like the idea..
Good luck!
henry on September 20, 2009 at 2:13 am
If you are residing in Canada, the following reference will be helpful for capital you need to start a business.
The Atlantic Canada Opportunities Agency (ACOA) provides contributions to Community Business Development Corporations and other organizations to help Atlantic Canadians acquire the business skills and capital they need to start, modernize and expand their businesses through the Seed Capital Program.
http://sbinfocanada.about.com/gi/dynamic/offsite.htm?zi=1/XJ&sdn=sbinfocanada&cdn=money&tm=72&gps=204_354_707_408&f=00&su=p554.2.150.ip_&tt=2&bt=1&bts=1&zu=http%3A//www.acoa-apeca.gc.ca/e/financial/capital.shtml
You can also try the idea presented by the following website:
Business Start Up
resources, information and up to 18 months free business banking
http://www.hsbc.co.uk/1/2/business/needs/starting-business
Cleopatra on September 20, 2009 at 2:13 am
No lender will talk to you unless you provide them with a valid business plan. Go to http://www.sba.gov , http://www.score.org or http://www.bplan.com for sample business plans and instructions on how to write a business plan.
Then, go to http://www.score.org/ and in the upper left hand corner, enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a SCORE counselor to review your business plan and discuss various loan options available to you.
SCORE is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA).
SCORE has 389 chapters in locations throughout the United States and its territories, with 10,500 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors.
Jenifer on September 20, 2009 at 2:13 am
Hi,
I got my $95,000 unsecured business line of credit from "Swift Financial" even though my credit was very bad.Their rates are very low.There is no application fee, no annual fee and no maintenance fee.It’s legitimate.I came across this company on NBC News.Check it out here:
http://swift.ez-mart.biz