Business credit/financing

[03rmking]

So what's the best source of business financing? I've been told business credit cards will get you the lowest rates if you stay on top of the payments and are never late. With rates as low as 3%, but up to 20% if you miss a payment. However I was never able to find a business card with a rate that low.

I approached my bank and the rate was about 14%. I"m talking small money, $10k-$50k for product development, 3-5yr term & pay off in under a year. Any advice?

 

[SAWYER]

my advice is this Tom, give me one of thosee cc's and i'll develop something.

I'd get something with some kind of a rewards program

 

[Skogen]

A line/loan is the best bet imo. Consistant interest. Can set it up for monthy/annual payments or a balloon where payment is done at maturity.

CC's are a good way to get into trouble.

10-50m loan should not be that hard to get. Cost of funds are dropping alot. Go talk with your local banker.

 

[Blue]

its not that much money, have you tried looking for investors fro seed money with a payout?

 

[team2]

I would also recommend attempting to find investors. When I got started two years ago, I approached the president of the company I worked at. Everyone told me they are tight with their money etc...I just approached him, developed a business plan and met with him twice and within 3 weeks of meeting, had myself a check to get going. it's not a guarantee to get an investor, but I would prefer it over the banks or credit card.

 

[TIM]

most counties have an economic development director. Get ahold of them. In kootenai country is is called PAC Panhandle area council. They may have some avenues for you.

tim

 

[EricW]

Tom:

SBA is a good resourse for small biz loans and capitalization. They offer lots of free programs and I have found that by using and attending these programs, you meet key people in all the right places. I used SBA to guarantee an 800K loan back in 1994.

There is also SCORE (Service Corps Of Retired Exec's) who are a bunch of help on R&D and finance in general. They are made up of a group of retired private, Gov't, and Commercial exec's who don't want to ride the couch just yet. They are a wealth of knowledge, not to mention having contacts in all the right places. I'll pm you some inside contact info. Good luck. EW

http://www.sba.gov/services/financialassistance/sbaloantopics/snapshot/index.html