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Product In Demand, No Money To Back Company

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Brandonl

Junior Member
What is the name of your state? California
Recently my clothing company has been doing very well. our product is in high demand not only in the united states but europe and south america as well. THE PROBLEM is lack of funds. Currently we are not capable of supporting or product to the full capability. any ideas. im not to sure about a loan were i have to pay it back im looking for more of a investor. check out the web site at www.fulcanindustries.com to get an idea about what kind of company we are. let me know what path we should take, thanks

-Brandon [email protected]
 


dallas702

Senior Member
You are like thousands of other small businesses in this country and overseas. Your choices are usually limited to either a short term loan or giving up a piece of your company. Investors are lenders, too, and are going to want more in return than just an interest payment. No matter which, you're going to have to show a solid business plan and some contracted committments from vendors and/or retailers.

What do you have for collateral? How long have you been doing business? Is it the manufacturing or the distribution that is slowing you down? You can advertise for investors in the newspaper, but you're going to get some people who will want half your company. If a bank won't lend to you then whoever does will want high interest and guarantees.

Try a bank first and see what they tell you. Even if they turn you down you can find out what your weak points are.
 

Brandonl

Junior Member
the manufacturing part is what is slowing us down. we have a business plan that is almost complete but no real contracts with vendors because we do not have the funds to supply the venders that have contacted us. Do you think it would be a wiser choice to go to the smaller stores and build the company slowly... or get a loan from a bank and supply the larger stores. we have only been in business for a little over a year now and me and my partner are very new to the game. it would probably be a better idea to get a loan anyway rather then give up a large chunk of my business to someone who wont be helping in any other way then startup... hmm
 

sukharev

Member
Try the loan first, maybe you can get home equity or something like that. Then, if that does not work, try angel investors. The good news about angel investors is they have a vested interest in having your company succeed. They will get involved and help in running your business, maybe help with good connections or negotiations. Yes, they will own a large piece of the company, but also help it grow, so your own piece would grow, too. Eventually, angels look for the return via exit strategy (typically buyout by a larger company or IPO), so that's the end of the road for you, too. If the company is successful, you would have enough cash to go do something else. Good luck.
 

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