Startup financing

We are getting really frustrated in trying to find financing for our startup. We did not think an SBA loan would be so difficult. We have about 50% owner contribution and an excellent credit score, but we are still being asked to have a guarantor. They love our plan and our targeted market, but startups are just too risky, apparently. Even a guy that collects a fee to help with SBA loans said there is very little money for startups this year and to wait until 2009. He said with the Mortgage mess and the uncertain economy, no one is lending unless you have proven cash flow.

Plan B is to finance the remainder from credit cards and any other money we can get our hands on. We sill still need the POS, oven and some other equipment to be leased, which also looks gloomy at this point.

Plan C is to scrap our plans for this market and just try to find any going-out-of-business or owner-sick-of-working place.

Plan D is to pimp our wives.

I am beginning to feel beaten down like canucklady! :lol:

Just wanted to vent a little. Not sure if there are any ideas out there we haven’t already pursued.

Plan B and D is not an option. They will bring financial, marital and emotional ruin.

Be patient, work like crazy and save.

Or if you want to move to good ol Missouri, our place is ready willing and able to open. 199,000 is all you need.

We have about 50% owner contribution and an excellent credit score, but we are still being asked to have a guarantor.

Are you saying they want someone other than an owner to be a guarantor or are you trying to get the loan without giving a personal guarantee? Also, the equipment leasing market should be fairly easy right now. Try David Meneses at Continental Financial or work with whoever your POS company or oven company reccomends.

Sounds to me like they may not have adequate collateral, and have to find someone who has the backing to sign a guarantee IN ADDITION to the 50% owner person.

They want a guarantor in addition to the 50% owner contribution. Basically, they are worried about cash flow. If the business fails, who would still have an income to make the payments (we are personally signing)? They want to see a discretionary income (beyond living expenses) great that the debt payments.

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I have a lease with Marlin Leasing - they work with Valiant Equipment. I found Valiant to have good prices and Marlin was good to work with.

Never tried them and do not know anyone that has, but I ran accross this and thought of your post:

http://www.prosper.com/