New startup, loan question

[jdl]

Hello,

My wife and i started a new business, and i sadly didnt get a small business loan. I used some credit cards, our saved money. We are now strapped for cash. Is it possible to now try and get a loan which i should have done before startup?

We need to purchase some more inventory and possibly pay off the personal credit cards we maxed for the business purposes.

any suggestions?

[Fulcrum]

I don't know your business and all my thoughts are pure speculation, at this point in time I don't think that a loan is in your best interest. You need to sit down with the numbers and see why your cash flow is suffering. If your customers are paying later than 30 days and you are financing your inventory with credit cards, you need to take the interest cost into account when setting your margins. If possible, make sure you are only pulling out money that you absolutely need and use the rest to keep your debt levels down and inventory at responsible levels.

[MattSmith]

Typically to get a business loan, they will want to see that you have an established business, with positive cash-flow. It might be better for you to do some research and analysis on how you can improve your cash flow before looking seriously at loans.

However, if you are set on getting a loan, it doesn't hurt to call a lender and discuss your options.

[craigmandco]

You have two options here:

1. Play shark tank - if you have a family member or a friend that has a nice cash flow, pitch your idea to them.

2. It will not hurt to talk to a bank or a private lender - most private lenders want to see transactions. Have you made any money with your business yet?

[tinker9696]

Not an expert on the subject by any means but 8 months into our business I sought out getting a business loan and was told by 2 lenders that I needed to be in business for approx 2 years before it would be a possibility or consideration. One lender did suggest that we take out a business credit card and that would help to establish a visible credit profile for the business. They offered 15k credit line of credit and there was no interest for 6 months. It has helped immensely especially with keeping tract of inventory purchases. We wont be in business for the 2 year mark until October. I would call a few lenders to see what they say..it doesn't hurt to try.

[michaelstark61]

Well You can take the loan by letting your personal belonging as guarantee or if your business is 6-8 months old and have good relation with your material vendor you can take the same on credit. Small business usually preforms like this.

[huggytree]

take out a 2nd mortgage

borrow from relatives

figure out how you got into this mess and solve the problem...thats the first thing you need to do

[rjoyce3582]

It is a lot harder to get business start up loans than people think. The first thing I would do is look into your cash flow. Discover what is your problem. Can you reduce your expenses? Can you increase your sales. Also you mentioned inventory. A lot of cost goes into inventory so evaluate that area.

I would start with a family members or friends as lenders or investors. Their are also crowd funding options. You can also get a business credit card. At this point it will rely on your personal credit history vs the business but it will help you keep your personal and business expenses separate.