Question Hello my name is John Walker. I hope all is well with you. I would like to get some advice if possible. I have never been in business and would like to try my hands in one. I have been in the IT field for 15 years in corporate America. I would like to start a Limo busuiness. I was laid off two years ago for about one year and it totally destroyed by credit. I am working on rebuilding my credit rating and as you well know it takes a while to do that. I am just wondering is there a creative way to create financing for startup of a business. I think this business will be a good one for the area that I live in which is Atlanta Georgia. Other than a business plan are there people who will help in the financing of this business? And where do I start? Thanks for your time.
Answer Dear John:
It depends on how much money you need. For the loan less than $35,000 you can apply for Microloan Program - which is designed to help applicants who cannot qualify for a traditional business loan because of poor, or lack of credit, and little, or no collateral. For more information go to: http://www.blquest.biz/microloan1.htm
If you need more than that – you can open corporation. Give 50% ownership to the trusted person with good credit and try to receive financing.
In both case you should be aware that banks will not finance “carrier change” event. It means that you have to have some relevant experience as a manager.
If you had a bankruptcy – business loan would be hard to obtain. Again you can give 85% of ownership to the trusted person with good credit. In this case bank will not check your credit history.
Another way: You can buy an existing business or a franchise. It will be easier to receive financing.
To obtain a start-up business loan you have to have:
1) Cash for down payment (30%)
2) Collateral – real estate to cover loan
3) Management experience – in most cases in the same industry.
Credit Solution Manual – information on how to re-build your credit rating, credit cards and loans for people with bad credit: http://www.blquest.biz/microloan.htm
