I start a small buisness and got a contract amount of 30k.Now i need a loan of at least 20k. where to get?

Question

I have tried banks,Microloan,lefs,Spring Singapore and Finance house.Some req. 3 yrs statement,others want more paper work like breakdown & future projection of my buisness & cost.The finance company want to talk to my client first and do my billing for me under thier finance co. agreement.My client is giving me a trial run and i do not wish to inconvience them with finance co. intervention,
so is there anywhere else i can go to?

Answer 1

I believe you have to write out all the business proposals, future projections, breakdown of costs, market segment, etc.

Pen out your thoughts into written material. That's where the banks and investors will know, understand, and evaluate whether they would want to loan the $20k to the business.

Do remember to state everything out clearly in black and white.

Answer 2

In order to be eligible for an SBA Loan, you must apply and be turned down for a conventional loan by a commercial lender. By law, the SBA may not guarantee a loan if a business can obtain funds on reasonable terms from a bank or other private source. A borrower therefore must first seek private financing.

Answer 3

It's not a big sum but banks do not grant any loan without sufficient documentation from your side. If they require you to provide breakdown and projections, you have to supply it to them, even if you approach a private investor, that person will still want to know everything in your detailed proposal. If not, there is no way you can get a loan from anyone.

Answer 4

My dear friend,

I think the best solution is to be honest with your client, and see if you can work out some thing with like like advance payment. They should understand cos you are a new start up and typically are tie with cashflow.

Another possibility is to find project funding inform of a short-term loan, with guranteed ROI. Some investor will be interested to taken you on.

Otherwise, consider outsource part of your project to another firm and share your profit.

Take care. all the best