There are two really manageable options that I can think of right off:1. Like the guy before me said, family and friends. To make the financing more palpable to them, go look at the website for virgin money. They make up loan papers and even emails to potential lenders from your list of friends and family, and make everything upfront and legal. the money is electronically transferred from your account and deposited into theirs so that you only have to make your payment and there are no hurt feelings.2. there are a couple of websites available where you ask for private loans from strangers. You put up your information and the amount you need to finance your business, and anywhere from one to thousands of people bid for parcels of your loan. one person can fund 1000 dollars while another person can fund 100. It s the same as above, the website takes a monthly payment from you re account, and distributes it.
Family and friends.It is a large part of small business start-ups anyway; but in the current marketplace credit is very tight. Unless you have a personal relationship with a bank or banker, the usual sources of small business financing (small local banks) are unlikely to get involved in a start up with no history of credit or business success.In regular times, personal loans and loans against your home equity could also be tapped. Still possible, but much less favorable in the current environment.
proven profit POTENTIAL means nothing. POTENTIAL is NOT guaranteedhow dod you have a home that is paid for if you never had credit?you won t get a lower int rate than using your home equitywhy would anyone lend to you if you aren t willing to risk any of your own money?
If you are based in the UK i may be able to help or advise.I help raise capital and funds for new starts and other business.stephen@corporatefinancialservices.co.��www.corporatefinancialservices.co.uk
