Small businesses are dwindling away. Make sure that you are starting a business that in ten years technology will not swallow you up and spit u out.

$200K is probably out of the question given your current income and situation. Here are some options: Try to either scale down your business idea by starting in a smaller market or with less offerings, etc. Scale it down to the point that your capital needs are more easily obtained - like under $50K. Try to create a just-in-time financing scenario. You probably don't need the entire $200K right away. If you were to create a cash budget (a realistic one) you would be able to determine when you actaully needed funding and how much. Then work to create a system that will fund you on your schedule. Example, let's say you need $10K per month - you can find a small loan for say $30K for the first three months. Then, once funded, while working on your business, begin to set up the next $30K funding round. This could be from a similar source or, if you are generating business assets at this point (accounts receivables, credit card receipts, purchase orders, etc) - you might be able to use them for your funding. And, so on, and so on. If some of the $200K is for needs other than working capital - like equipment - try to break out that amount and seek out an equipment lender that works with start ups. Then, since the remaining amount you will need is less - try to seek a traditional loan for that amount. Find a partner that can overcome your weaknesses - someone that has income, collateral, etc. Lastly, depending on your business - you can always go out and get the business first - i.e. purchase orders, sales contracts, etc - then use them to seeking financing. Lenders will be more willing to work with you if you have business in hand at time of application - plus, there are many more financing options for this type of scenario.

Do you have any assets you could put up as security? e.g. home/investments etc.. Banks do like to see a proven record.  Failing that route, you could try alternative investment by business angels, venture capitalists etc, however they will require more equity if they choose to invest.   Could you start small scale, show it is profitable and then upscale it with investment?   Good luck by the way, good to see entrepreneurs still having a go in the current climate, good on ya!

Alex,   I would say it is not impossible to get a $200K loan for starting a business but it is not easy either.  The problem here will be proving that you actually need this amount.   Personally, I don't think any small business requires $200K to begin with and that's where you will face problem explaining to lenders.  Try to start small and look for appropriate financing.     If you are that you can't do with anything less than $200K then loan is not the right option for you.  Look for angel funding, venture capital or like.   - Vikrant Small Business Guide    

One hears a lot about 'getting money from the government' for business loans and grants. I've always discounted it unless you were a large, enterprise organization. Now that I'm market researching a new e-commerce store and am ready to pull the trigger, I've begun to wonder if there isn't something I could learn here, hence my discovering this site.   I'm wondering from a realistic point of view, are there any legitimate loans and/or grants to sole propietors like me? My instinct is telling me now, but I feel it won't hurt to research it a bit.  I welcome any feedback.   Thanks, GR Cayenne Pepper