Business loans and raising capital

[Bowmans]

Hey everyone...my company has only been in service for this year (7 months or so). I am 20 years old and have taken my business from making $0 to approx $3,000 a month. I am looking to purchase some new equipment to make fall clean up's run smooth (debris loader) and a snow plow for the winter. These 2 things will run about $5k and thats $5k that i dont really have. Id like to raise capital and get some kind of loan to cover this cost but ive found that my age, the nature of my business (self employed) and the short term of my business makes that process hard. Any advice of how to get a capital loan would be great.... Any lending institutions that you may know of or have experience with?

[Scaper-S2k]

The leaf vacs can be had for fairly cheap. If you can afford that, get it, then use the money you make off of it to buy the snow plow.

Personally, I would skip the vac, use the mowers/blowers/tarps to do the leaves, then just buy the plow.


But if you 'Must' get it, and you have a Lesco dealer around, try them out for credit. They have decent leaf vacs to get you started.



You can get by without a vac for leaves, but not without a plow for snow.

[MASTERMOWER]

If you desire a small business loan you ought to prepare a business plan. You are correct to assume that aquiring a loan soley based on your age, short duration of your business and being self-employeed would be difficult. However, if you appear serious to a loan officer and hand them a well-prepared business plan, he/she will not hesitate to offer you the loan you need.

[tight grass]

Do you get credit cards in the mail?

Find one that has 0% interest for 12mnths

Ask for a limit that is sufficient for your needs, but you may not get seeing as you are only twenty

$3,000 a month should have that paid off pretty fast

If this doesn't work go to the bank, if they denie you ask your dad if he will co-sign with you. this should work

I was 19 (now 26) when i got my first credit card and it had a limit of 3,500 and i maxed it out the day i got it, payed it of in 3 payments and then maxed it out again. i had almost everything in needed but what i had was paid for and the next year everything was profit.

credit cards scare some people, this may not be for you

[Littleriver1]

If you are only doing 3000 a month then you have time to get a part time job. It may bother you some that you need that kind of help, but isn't that what you are asking the bank to do. The difference is, your friends and family will see you going to work. They will not see you making out a check to the bank. They will see what seems to be a success on your part. Wouldn't it be better to get the money to live on by working for it. You may miss out on some fall leaf cleanups this year but believe me they will still be here next year. Then you will be putting that check in your bank account not the loan officers. There are still a lot of things you can do to make money this fall. Get a rake and a tarp at the Walmart and only do as much as you can. Pride goth before a fall.

[chriscampbell]

charter one bank will loan you up to 25% of your profit from the first 7 months. They are the largest small business loan in the country.

[TinkerLawn]

To get these loans you have to have credit and collateral, I am 21 years old and the first loan I got had to be co-signed for, (this is your best bet) with a co-signer the bank will have no problems lending you the cash you need. The second thing "collateral" (this is what the bank will take of yours if you do not pay), If you have your truck titled in your name you can offer that up and they will be more lenient to give you a loan. Go and talk to a loan officer, they are nicer than you think.

P.S. Open up a credit card this is the fastest way to earn credit, talk to the loan officer about this they will tell you the same thing.