Small business loan...any ideas?

[Travelair007]

Hi Folks, I'm looking for recommendations / ideas on where to get a small working capital loan for a business I'm involved in. I'm a minority investor and funds won't come from the partners.

Traditional banks and SBA banks will be too slow to generate the loan and ask for a pound of flesh in return. I've heard of faster money loans out there but do not really know what they involve.

The business needs a bridge working capital loan in 2 weeks. it would be in the neighborhood of $100k

Does anyone have a recommendation where we should be looking?

Thanks!

[superdog]

Best place to look is the bank you are currently doing business with.

[brandrea]

Alternate lenders will charge more than banks but perhaps you can cash flow it and that’s not a problem ...

Cash is cheap right now so finding a decent rate on the secondary market should be doable for that amount. As Seth says, if you can work with your existing bank it helps as they have somewhat of a vested interest in you.

Good luck

[superdog]

Originally Posted by brandrea

Alternate lenders will charge more than banks but perhaps you can cash flow it and that’s not a problem ...

Cash is cheap right now so finding a decent rate on the secondary market should be doable for that amount. As Seth says, if you can work with your existing bank it helps as they have somewhat of a vested interest in you.

Good luck

They should also be aware of your history. So it’ll make the loan process move faster. The underwriters will be the pita and likely the delay. But if you have all your ducks in order and collateral to guarantee, it should go pretty fast.

[Travelair007]

Thanks for the replies. This business has no bank loan. It was privately financed by 3 investors. I'm trying to think of way to get WOC funded without launching a 3 month underwriting process.

The fees would be acceptable since this would be a fairly short term draw (3 months perhaps)

[1st amg]

Vito on the corner in your cities Little Italy neighbourhood for what you are looking for.
Seriously, you should talk to your lawyer, they tend to have a fist full of private lenders/clients you can get quick cash set up done through him, the interest will obviously be higher, but it can get done.

[superdog]

Originally Posted by Travelair007

Thanks for the replies. This business has no bank loan. It was privately financed by 3 investors. I'm trying to think of way to get WOC funded without launching a 3 month underwriting process.

The fees would be acceptable since this would be a fairly short term draw (3 months perhaps)

I have no loans either.

But I bank with a specific bank

You must be banking with someone. Where are your accounts?

[Naples09]

i would think a loan from the investors/partners would be the easiest and cheapest route to take since you don’t have a banking relationship. Just need an attorney to draw up a loan document.

[Fat_ninja]

Originally Posted by 1st amg

Vito on the corner in your cities Little Italy neighbourhood for what you are looking for.
Seriously, you should talk to your lawyer, they tend to have a fist full of private lenders/clients you can get quick cash set up done through him, the interest will obviously be higher, but it can get done.

+1 on Vito. Or pawn shop

[Travelair007]

Originally Posted by 1st amg

Vito on the corner in your cities Little Italy neighbourhood for what you are looking for.
Seriously, you should talk to your lawyer, they tend to have a fist full of private lenders/clients you can get quick cash set up done through him, the interest will obviously be higher, but it can get done.

Good idea. I’ll look into that.

Originally Posted by superdog

I have no loans either.

But I bank with a specific bank

You must be banking with someone. Where are your accounts?

BoA for this business. Full underwriting required. Lengthy and not worth it for $100k.

Originally Posted by Naples09

i would think a loan from the investors/partners would be the easiest and cheapest route to take since you don’t have a banking relationship. Just need an attorney to draw up a loan document.

You’re right but not an option for this situation

[locutus49]

BDC's are exactly what you want. They loan money to small businesses. Google BDC and your area.

[jschmidtdmd]

For quick financing look at Fundbox or Kabbage. Both are same day. Also, I’ve done business with marlin business bank. They fund in a day, up to 250k and have 18 month terms. I used quite a few of these when I expanded to 10 dental practices. Most traditional lenders wouldn’t touch it, so this is the route we went.

It’s certainly more expensive but it’s fast.

[RW16610]

Some excellent things suggested by all above. I've got nothing to add really but do want to wish you the best of luck with this! Let us know how it turns out.

[Chewbacca]

Great advice by all.

Why not just share what your biz is and see if anyone here is interested? If your biz is something that is high risk or one banks don’t like to touch, that changes things immensely.

You can then share the BP and get better dialogue off the open forum.

That’s kinda what you’re getting at anyway... If not, you’re doing a good job and I like a resourceful entrepreneur.

[Watchflair]

Originally Posted by Travelair007

Hi Folks, I'm looking for recommendations / ideas on where to get a small working capital loan for a business I'm involved in. I'm a minority investor and funds won't come from the partners.

Traditional banks and SBA banks will be too slow to generate the loan and ask for a pound of flesh in return. I've heard of faster money loans out there but do not really know what they involve.

The business needs a bridge working capital loan in 2 weeks. it would be in the neighborhood of $100k

Does anyone have a recommendation where we should be looking?

Thanks!

Good credit? Good income?

Sofi - Discover - Prosper - personal loans are super quick and easy. You can get funds in a matter of days and if credit is good then interest rates aren't too bad.

[chicagonoob]

What line of business are you in? If you generate accounts receivable, factoring can be a relatively quick solution. With factoring, the lender essentially "buys" your receivables and advances you the cash....it's not cheap, but can be fast - certainly faster than traditional underwriting through a commercial bank.

One drawback - they'll likely institute a lock-box where your customers will need to submit payment...so a logistical change for remittance (only for the receivables you sell).

Like anything make sure you read the fine print / consult with your advisors. Given the dynamics described this could be a workable option. Plenty of factoring companies out there - some good, some bad. I've worked with a handful for clients through the years - feel free to PM with questions.

Good luck!!

[steve099]

Originally Posted by Travelair007

Thanks for the replies. This business has no bank loan. It was privately financed by 3 investors. I'm trying to think of way to get WOC funded without launching a 3 month underwriting process.

The fees would be acceptable since this would be a fairly short term draw (3 months perhaps)

try someone like OnDeck or Prosper

[JasoninDenver]

Might be difficult given you are a minority shareholder. Your loan would most likely have to be a personal loan secured by personal assets.

I work with our local BDC and their partners underwriting standards are very strict and time consuming.

[michaelodonnell123]

Go fund me.

[CamSLC]

Originally Posted by Travelair007

Hi Folks, I'm looking for recommendations / ideas on where to get a small working capital loan for a business I'm involved in. I'm a minority investor and funds won't come from the partners.

Traditional banks and SBA banks will be too slow to generate the loan and ask for a pound of flesh in return. I've heard of faster money loans out there but do not really know what they involve.

The business needs a bridge working capital loan in 2 weeks. it would be in the neighborhood of $100k

Does anyone have a recommendation where we should be looking?

Thanks!

I do short term private lending. My partner is an attorney and brings the majority of our clients. We have only focused on local debtors, primarily real estate/or other hard asset secured. Home builders and car dealers. But, have also lent to dentist, restaurants, concert venues, importers, trucking companies and personal cosmetic producers. Once Bail Bondsmen.

What we look for bluntly, is liquidation value of collateral. So it's entirely dependant on the type of business you're in. If is a product it's easy, if it's a skill it's nearly impossible. These types of loans are fast, and expensive.

[Danny83]

Ive pointed a few of my friends to Kabbage.com works great

[Travelair007]

Thank you all for great recommendations. I looked into all the suggestions. The one that emerged as the simplest (but not cheap) was Kabbage. I received a instant decision for the amount. It was effortless. The only hiccup is they do require a personal guarantee.

Factoring was another good option but the 2 companies I approached were asking for a 1st lien position on the whole business.

Thanks again!

[othertbone]

Originally Posted by superdog

best place to look is the bank you are currently doing business with.

+1