What type of loan?

**Underhill** · 12-04-2008 06:26 PM

Hello,

I am trying to secure $50,000 for a project. We have written the business plan and done all of the projections, we met with both SCORE and the SBA, and both think we have a really solid idea, plan and projections. We have a location, suppliers and no competition in the area. It is also as recession proof of a business plan as you can get.

Here's the problem, the bank keeps telling us we need collateral. We don't own a house or anything worth $50,000. We have a moderate income and very little debt. I keep wondering if I had a house with that much equity I would take an equity line out, so has nobody ever secured a $50,000 loan without equal equity? It would seem so no?

I am at a loss, would anyone have any suggestions for alternative ways to get this funding?

And please spare me the friends and family, drug dealing, save up for it answers, I've heard them all and would really appreciate some actual practical advice on my situation.

**conductr** · 12-04-2008 10:12 PM

find 50 payday loan websites, get $1k from each

it is a bad time and things like this are the effects of the credit crunch, you are just too risky without collateral. think about venture capital, angel investors, the reality you are going to have to find somebody with money to loan you - a business, including banks, probably will not do it

however, it depends on what you are using the money for. try and take leases out for equipment, that way the equipment itself serves as collateral, then take out an unsecured loan only for your operating capital requirements

**efeobama** · 12-04-2008 10:26 PM

I read your ad and i feel for you. I am a loan broker, i can help you contact a lender but i only hope this message gets to you and if it does please get back to me on this email: efeobama(at)yahoo.co.uk

**spencerg** · 03-01-2012 02:31 PM

Check out your local economic development agency, city/town/county as there are typically several sources of micro loans and revolving loans available.

**loanuniverse** · 03-01-2012 07:31 PM

I know that the original post is old, but I think most people starting out with little assets, and no access to financing should probably reconsider downsizing their plans to get them rolling before getting additional financing.

I know there is always the temptation to try to implement a plan that takes the project to where it starts cash flowing. However, taking it to the point where you can show a prospective investor that there is a future might be the only reasonable avenue.

This is valid in the brick and mortar where I see people starting out and wanting to buy the building from the very beginning as well as in a new internet venture where the entrepreneur budgets for a full managed server, when a small virtual hosting account would do.

If you have no money, then just put in some sweat equity in the project. You will still need a little money, but probably not as much as you think.