Finding Grant Money to Expand my Business
by jlatorre, Window Shopper
- Created: March 21, 2010, 5:17 pm
My wife and I have started a business on 09/2008 without a loan when I lost my job. I started this business using personal cash flow, but difficult to grow when payment is always requested up front and payables are normally 30 - 90 days out, dependent on ship date.
Anyway, I am a Marine Corps Veteran with disability doing mostly Global Sales for Container Solutions and Chemicals for the Offshore Industry, and my wife concentrates on Promotional Advertisement.
Most of my customers pay up front, but my wifes customers are domestic and have 30-day payment terms. Therefore, as I receive funds from my customers, all proceeds normally go towards my wifes suppliers because they demand monies up front.
I have spoken to our suppliers, and asked for payment terms, but it's a long drawn out process. Nevertheless, we have a good mix of backorders, payables, and receivables; however, the company is growing quicker then anticipated, and we need monies to continue the growth.
Last year was our first year, and we did roughly $500,000 in total sales, and the first 10 weeks of 2010, we are almost at $400,000 in sales. We have not taken any proceeds from the business in 2010 because of the growth; however, this is not the proper way to grow a business. I need to find about $200,000 to $500,000 in operating capital to hire a couple of employees and continue this growth.
I have about $200,000 in equity from my home, with about $38,000 left in personal Cash Flow, but suppliers bills are coming in faster then payables, meaning that this will be the 3rd month not receiving a paycheck. In addition, the banks will only provide 80% of the equity in my home which is not enough based on the expansion.
I have 1 kid in college, and my son just lost his job, and I need to make this run smoother with less stress on personal finances. I tried to work this business without a loan, but it is becoming extremely difficult to continue in this manner, without paying myself. I need helpful advise on trying to get grants or low cost loans, but I prefer looking for grants first so I can make this business flourish.
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