Need Loan for Online Retail - Not sure where to start
by thecommonwealth, Window Shopper
- Created: October 18, 2013, 10:16 am
- Updated: October 19, 2013, 10:07 am
I've been doing retail sales online for about 5-7 years now, but am experiencing growing pains due to high cost financing. Stock was initially was financed with cash, but as I expanded I used credit cards that have high interest rates. As inventory grew I no longer paid off everything monthly and now I am paying high interest rates without enough capital to expand. My business is in a bottleneck of low inventory due to credit card payments, costs, etc - and I need to expand to grow sales and pay off debt. Would a small business loan be a valid option? Yearly sales are in the $150-$200k range, but I really cannot expand beyond this number until I receive financing. I would like to ask for at least $50k to start - would like to ask for more if possible, but not sure if this is realistic given outstanding debts (around $15k). Incredibly grateful for any help or tips. EDIT: 10/19 To respond: I think I may have been unclear: the business is doing well - I am not struggling to pay bills/expenses by any means. I have been doing this semi-part time (nights and all weekends) for a 5 years now. In order to expand and make it a viable full time occupation, I need low cost capital to expand inventory. Many of the suppliers I work with have minimum order requirements that can easily be $50,000 - which is difficult to manage without completely liquidating all existing inventory or taking on substantial short term debt. I have some other financing options for the short term, but was curious about SBA loan programs to see if there was one that would fit my needs. Does anyone have any more information on whether this may be a viable option or an estimate of a realistic loan size? I have a list of local SBA lenders I was going to schedule to speak with next month, but want to make sure this is a possible option before I spend the time working on this, only to secure loan that won't fit my needs or simply be rejected.
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