You could try to get a business ac loan, but right now not too many lenders will touch these deals. Basically a business acquisition loan is a loan tailored specifically to acquire an existing business or expand a current business to new locations. From what you are saying it seems like a working capital loan might even fit you. Is your companies business credit high or low? Some unsecured loans will fit you but you willl most likely have to also have a personal guarentee attached to your name. I would suggest turning to your local SBA field office or even a chamber of commerce and ask the members.

My parents would take a note payable as the buiness is doing better. The problem is in the inventory we are a sawmill that requires $20,000 a week in logs for the production and about $5,000 in labour cost.the lumber profit on these items at this time is about $500 per week and it takes about 30-45 days to be payed so your looking at $150,000 just to get started so $300,000 is not a bad number to need to work with. Our current inventory is around $250,000 in ready to ship lumber but we have been slowly using up that to keep current on loans. loans are at about $750,000 to the banks for past inventory and equipment.The banks have told us that at this time our current dedit to inventory and equipment is not suffient to receive a new loan.We have not had a current value of the company but we are thinking we are worth in the 3 million dollar range in equipment,land and inventory.

Are you trying to buy the business from your parents? or, are you looking for additional working capital to get over your current slump? If you are looking to purchase from your parents - will they not carry the note? Set a price with them and tell them you will pay them so much a month as the business makes profits. Not only will this get you the business - but each of you may be better off from a tax perspective. For working capital - if your business is struggling - it may be very hard to get. But, not impossible. However, it is hard to point you in the right direction without more details like 1) how much you are seeking, 2) what the funds will be used for specifically and 3) why you are currently being told no. keep in mind there are many ways to get the funding you need - some can be unsecured but you and your business has to be financially sound or asset based - depending on how and who you sell to. Message Edited by phanio on 12-28-2009 11:56 AM

Hi greg-1971 - Sorry to hear about your predicament - many other members of the community have found themselves in similar situations during the economic downturn. Unfortunately, this community was not designed to find investors or partners - however, if you're looking for funding Business.gov has some great resources. The Small Business Administration's Microloan Program was recently awarded additional stimulus funds. With limited qualification requirements, this may be a good option for a small loan ($35,000 or less). For more information, check out the Small Business Cents blog I Need Money - Where Do I It?. Also, try using Business.gov's Loans and Grants Search Tool to set specific requirements and find out what financing options are available to you. Good luck and we hope you'll continue to use the community as a resource and forum to share your experience and progress!