Just found this forum during my quest to answer this question myself. Let me give you the briefest intro I can.
I own a used car business, second generation, open since 1952. For 25 years I did it as a sideline while working full time for the USPS. I got downsized and left with no job, income, or retirement. So, my plan became working the business full time. I have:
Very good location with garage and office; proven spot on a main road where in the past we did very well.
Well-established clientele
Unlimited product supply line
40 years' experience of successfully evaluating, buying, and selling vehicles
Excellent business reputation
Business property is owned by me, debt free- LOTS of equity
PROBLEM: Poor credit
Five years ago the business was doing great. My brother was running it for me while I worked my job. At night I would do the buying, and handle odds and ends. Brother hired an employee and didn't keep good tabs on him; employee embezzled large amount of money, enough to crash the business. I spent four years cleaning up the mess and paying off the debt. In the process, my credit was ruined. My plan was to reopen the business, start rebuilding slowly, then go into it full time in three years when I would have retired. With the unexpected loss of my job, my time frame has been accelerated. Thus, I do not have the funds to purchase the needed inventory. Currently I have managed to assemble a very small inventory of cheap cars. I have been making some money. The problem is, I don't have enough inventory to create enough steady profit to pay the bils and reinvest in more inventory.
So, I have set about trying to find alternate ways to raise capital. I have a professionally drawn and detailed business plan with spreadsheet projections that are excellent, drawn by our local Small Business Development Center. The amount that would get me off the ground is very small by average business standards. Every financial institution that has looked at my situation loves the plan, but cannot give a loan because of my damaged credit. For 6 months I have tried every source I could think of or find; it's always the same, we'd love to help, if only you had good credit.
So, my ongoing quest and Google search has brought me here. I am posting this knowing the reality of my situation, and that chances are unlikely any of you will have my answer. But I write anyway. I will never give up; I have no room for failure.
Do any of you have any advice or ideas for my situation? I have a written plan, proven business and location, experience and expertise, and strong equity since I am putting everything on the line as collateral. I just need a legal way to borrow enough to get off the ground- without good credit.
I see people all the time that start low-likelihood-of-survival businesses, go broke, then resurface with another poorly thought out business, crash, and repeat... over and over. All I want is one chance for a proven, operating business to ramp up to a sustainable level. There just HAS to be something I'm overlooking.
Any help/advice would be much appreciated.
I own a used car business, second generation, open since 1952. For 25 years I did it as a sideline while working full time for the USPS. I got downsized and left with no job, income, or retirement. So, my plan became working the business full time. I have:
Very good location with garage and office; proven spot on a main road where in the past we did very well.
Well-established clientele
Unlimited product supply line
40 years' experience of successfully evaluating, buying, and selling vehicles
Excellent business reputation
Business property is owned by me, debt free- LOTS of equity
PROBLEM: Poor credit
Five years ago the business was doing great. My brother was running it for me while I worked my job. At night I would do the buying, and handle odds and ends. Brother hired an employee and didn't keep good tabs on him; employee embezzled large amount of money, enough to crash the business. I spent four years cleaning up the mess and paying off the debt. In the process, my credit was ruined. My plan was to reopen the business, start rebuilding slowly, then go into it full time in three years when I would have retired. With the unexpected loss of my job, my time frame has been accelerated. Thus, I do not have the funds to purchase the needed inventory. Currently I have managed to assemble a very small inventory of cheap cars. I have been making some money. The problem is, I don't have enough inventory to create enough steady profit to pay the bils and reinvest in more inventory.
So, I have set about trying to find alternate ways to raise capital. I have a professionally drawn and detailed business plan with spreadsheet projections that are excellent, drawn by our local Small Business Development Center. The amount that would get me off the ground is very small by average business standards. Every financial institution that has looked at my situation loves the plan, but cannot give a loan because of my damaged credit. For 6 months I have tried every source I could think of or find; it's always the same, we'd love to help, if only you had good credit.
So, my ongoing quest and Google search has brought me here. I am posting this knowing the reality of my situation, and that chances are unlikely any of you will have my answer. But I write anyway. I will never give up; I have no room for failure.
Do any of you have any advice or ideas for my situation? I have a written plan, proven business and location, experience and expertise, and strong equity since I am putting everything on the line as collateral. I just need a legal way to borrow enough to get off the ground- without good credit.
I see people all the time that start low-likelihood-of-survival businesses, go broke, then resurface with another poorly thought out business, crash, and repeat... over and over. All I want is one chance for a proven, operating business to ramp up to a sustainable level. There just HAS to be something I'm overlooking.
Any help/advice would be much appreciated.
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