Hi guys,
Our business needs to take out a small business loan (10k USD) to fulfill around 2 dozen orders. Basically, the customers are on a 2 week waiting list with money down.
The problem is that we don't have enough cash in our bank at the moment to buy the new inventory.
Our business is growing too fast to keep up with demand, so our current cash is invested in inventory yielding higher margins (35%) than the products on the waiting list (20%). We are in business since July 2012, but only saw real growth since February of this year.
How do we go about taking out a loan even if it's just a small one?
We contacted our bank and basically opted for a cash flow solution that allows us to go negative on our checking account at 10% interest/year (calculated on the negative amount x days)
We are asked to supply year-end numbers, but honestly they are 5x weaker than the current quarter's numbers.
Any suggestions?
PS There are individual money lending companies lending out small amounts at half the cost (5.7%) for "personal" loans. Think of slow laners paying for their wedding. They have the reputation of being easily obtainable credits that can even be applied for online. Would you recommend this?
PPS: English is not my native language. I'm based in Europe so we might not have every solution that's available in the US.
Our business needs to take out a small business loan (10k USD) to fulfill around 2 dozen orders. Basically, the customers are on a 2 week waiting list with money down.
The problem is that we don't have enough cash in our bank at the moment to buy the new inventory.
Our business is growing too fast to keep up with demand, so our current cash is invested in inventory yielding higher margins (35%) than the products on the waiting list (20%). We are in business since July 2012, but only saw real growth since February of this year.
How do we go about taking out a loan even if it's just a small one?
We contacted our bank and basically opted for a cash flow solution that allows us to go negative on our checking account at 10% interest/year (calculated on the negative amount x days)
We are asked to supply year-end numbers, but honestly they are 5x weaker than the current quarter's numbers.
Any suggestions?
PS There are individual money lending companies lending out small amounts at half the cost (5.7%) for "personal" loans. Think of slow laners paying for their wedding. They have the reputation of being easily obtainable credits that can even be applied for online. Would you recommend this?
PPS: English is not my native language. I'm based in Europe so we might not have every solution that's available in the US.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
