Seeking help/advice on obtaining funding for a new small business

3,134
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Joined Jul 23, 2008
does anyone know the best method to go about borrowing money for a small business that is currently being formed? all of the banks that i have talked to so far (chase, wells fargo) only borrow to companies that have been in business for at least 2 years (so they aren't down with start-ups). a lot of the business bankers recommended talking to the city but i've heard it takes forever to secure a loan and the project i'm working on is pretty time sensitive.

any advice would be greatly appreciated. and for reference, the business will be based out of los angeles, CA. if anyone has any experience with small business loans in LA, please chime in. thank you!
 
2,820
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Joined Apr 8, 2003
The city will work, but like you said its time consuming especially if you're in a bigger city. Did you draw up a business plan to show the banks or they just straight up denied you from the jump?
 
3,171
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Joined Dec 31, 2006
Venture Capitalist in the area. But then, you're faced with people who know nothing about your business running your business.
 
3,134
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Joined Jul 23, 2008
Originally Posted by BgL2687

The city will work, but like you said its time consuming especially if you're in a bigger city. Did you draw up a business plan to show the banks or they just straight up denied you from the jump?
i have a very good business plan written up, including both profit/loss analysis and marketing strategies.

but yeah, they didn't even bother listening because they have a pretty strict 2-year policy. i'm gonna try some local banks and see what they say.
 
4,959
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Joined Mar 26, 2009
Originally Posted by Toy Collector123

Venture Capitalist in the area. But then, you're faced with people who know nothing about your business running your business.
Venture capitalists fund the business they don't run it.
 
22,091
10,588
Joined Dec 23, 2009
Well I've been working on getting investments from a group who invested in my dads companies. Luckily for me, I'm trying to get very little money from them, and they have a lot of money.

If I were you, I'd try to find an investment group or something of that nature. Maybe Kiva.org if you can get a profile on there? I was thinking about that since it's literally a business-loan website, but I dont know enough about it other than NT donates a bunch of money through that.


If you want some tips on your business plan, I'd be happy to look over it and see if there are areas you can improve. I spent a few months working on mine and getting input from others really helped me improve it.
 
3,171
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Joined Dec 31, 2006
Originally Posted by spsfinest212

Originally Posted by Toy Collector123

Venture Capitalist in the area. But then, you're faced with people who know nothing about your business running your business.
Venture capitalists fund the business they don't run it.
They fund your business in return of shares... hence, if they own 90% of the shares, they run your business.
 
4,773
4,530
Joined May 20, 2006
Browse this site and i'm sure you will find what you are looking for.

http://www.sba.gov/


Of course theres the possibility you just flat out can't get a loan for any number of reasons, it's not a god given right.
 
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Joined Apr 30, 2005
You're understandably vague with the details, but you can sell portions or percentages of the business to investors/silent partners.  You may have to do some bargaining but you can draw up the parameters any way you like until you get some people to buy in. 
 
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