We qualify for a SBA Patriot Express loan and can't even get one. The few banks who do handle them, dont want to put the paperwork for one thru. We have prime credit and have pretty much been shut out. I have been told it would be easier for me to get a $300,000 dollar loan for a business then for a $11,000 dollar loan. I totally feel that because my loan is small and would garner them less interest then a larger loan, they just can't be bothered to do it.
Because I cant get the equipment I need, I have actually as of today had to turn down a job for a customer, and have other customers waiting for me to upgrade for more business. The equipment would also help me to produce my product quicker. So my bottom line is hurting every day I do not have this machine. Yet I can not get a loan.
We have tried out regular bank, which is a national bank, we have tried a local small bank...all to no avail. Honestly the past two weeks trying to get this loan have been exhausting, has taken time away from my business, and has left me deflated, and hopeless.
Spinning my wheels in the mud and getting no where.
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I have a few options you may want to consider.....
-Could you rent or lease the equipment (even if it cuts into profit) to serve your waiting customers?
-Could you collect deposits from existing customers to pay for the equipment and then complete the work? Caution, this will greatly reduce cash flow from the jobs you do.
-Have you tried a credit union? Do you have home equity you could draw on? (I would prefer to see you do this debt free, but I understand not everyone feels that way.)
-I hate dealing with these programs, but you may consider the SBA's Community Express program. There are a few unsecured lenders that make loans nation wide from $5,000 to $50,000. They are slow at processing loans, have adjustable rates, and provide terrible customer service- but if you're desperate they may be an option. These lenders generally participate in the Pat Express program as well and would prefer to make a loan under it because they are limited on the number of CX loans the can make each month.
-Oh, this one just hit me.....If you know someone that is independently wealthy, they could purchase the equipment and lease it back to you.
-Check with Community Development Corporations and banks in your area to see if they offer an equipment leasing program, it would work much as described above, but the bank or CDC would own the equip. at first.
I hope this gives you some other options to consider.
Message Edited by TR_OK on 03-31-2009 01:49 PM
Did you already look into SBA's microloan program? For more information on other loan programs that might be available to you, see our loans & grants search tool.
Please let us know if this information is helpful.
Regards,
Erin
This is an absolute travesy of justice and fairness. If I were you, I would contact my city or county representative, or even my US Representative or Senator. Tell them the situation. Name names. Give dates. One of them will put enough pressure on the bank to let you get that loan. You earned it, you should have it.
MaryAnnwww.BusinessPlanMaster.comBusiness Plans for Financing Your Business
Message Edited by BusPlanMaster on 03-22-2009 02:28 PM
May want to try some of these sites. I haven't been on all of these lately, but basically these are private lenders to whom you can pitch your business idea or need.
All the best!
peer-lend.comprosper.comlending.comZopa.comfynanz.compertuity direct.com40 billion.com
I have a few options you may want to consider.....
-Could you rent or lease the equipment (even if it cuts into profit) to serve your waiting customers?
-Could you collect deposits from existing customers to pay for the equipment and then complete the work? Caution, this will greatly reduce cash flow from the jobs you do.
-Have you tried a credit union? Do you have home equity you could draw on? (I would prefer to see you do this debt free, but I understand not everyone feels that way.)
-I hate dealing with these programs, but you may consider the SBA's Community Express program. There are a few unsecured lenders that make loans nation wide from $5,000 to $50,000. They are slow at processing loans, have adjustable rates, and provide terrible customer service- but if you're desperate they may be an option. These lenders generally participate in the Pat Express program as well and would prefer to make a loan under it because they are limited on the number of CX loans the can make each month.
-Oh, this one just hit me.....If you know someone that is independently wealthy, they could purchase the equipment and lease it back to you.
-Check with Community Development Corporations and banks in your area to see if they offer an equipment leasing program, it would work much as described above, but the bank or CDC would own the equip. at first.
I hope this gives you some other options to consider.
Message Edited by TR_OK on 03-31-2009 01:49 PM
Sewdragondesign... You may qualify for lease-financing directly with a funder. There are funding sources backed by non-bank related, private investors who will even fund start-ups with good credit and established businesses with challenged credit.
Regards,
Did you already look into SBA's microloan program? For more information on other loan programs that might be available to you, see our loans & grants search tool.
Please let us know if this information is helpful.
Regards,
Erin
This is an absolute travesy of justice and fairness. If I were you, I would contact my city or county representative, or even my US Representative or Senator. Tell them the situation. Name names. Give dates. One of them will put enough pressure on the bank to let you get that loan. You earned it, you should have it.
MaryAnnwww.BusinessPlanMaster.comBusiness Plans for Financing Your Business
Message Edited by BusPlanMaster on 03-22-2009 02:28 PM
Robert2000 | Window Shopper | 2/27/2013 - 7:12 am
loanandgrants | Window Shopper | 2/26/2013 - 9:04 pm
TR_OK | Contributor | 3/23/2010 - 1:45 pm
erinwhaley | Contributor | 3/20/2009 - 3:33 pm
BusPlanMaster | Window Shopper | 3/20/2009 - 3:57 pm
beip | Window Shopper | 3/23/2009 - 12:44 am
TR_OK | Contributor | 3/31/2009 - 2:47 pm
akespass | Creator | 3/23/2010 - 1:45 pm
erinwhaley | Contributor | 3/23/2010 - 1:45 pm
BusPlanMaster | Window Shopper | 3/23/2010 - 1:45 pm
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