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Am I thinking wisely?

YvetteMarieYvetteMarie subscriber Posts: 8
edited February 2007 in Startup Funding
I am a single mom of a lot of kids, who lives out in the boonies of Wyoming.  I own a portrait photography business, and have sucessfully run it for about 4 years. My business has grown about as big as it can be out here, and was having difficulties growing my business due to location.  Theres a larger city that is 45 miles from here, where I have been able to do a lot of on location photography , but I didnt have a studio and certainly couldnt afford the rent on one.
Getting to the point here, I found a building.  Month to month rent at a price I can afford.  Its not pretty, but its a good location.  While I see the prudence in not investing a whole lot of money into making a place look nice when its strictly month to month, I do need a LITTLE money to make it presentable. 
Heres where my need for opinions comes in:  I own my own home.  Outright.  My credit is not so good due to a divorce and three surgeries last year and no medical insurance.   Im trying to get ahead here and out of this slump, but Im going to need about $5000 to do it.  Im extremely frugal and could make that money go far!  I`ll need money for advertising, displays and some things to make my building decent.
WIth a poor credit score but a house for collaterol, will it look favorable enough at all to get a small loan?  Im infused with the entrpreneurial spirit, but Im totally lacking in the ability to ask ppl for money. *I* know I`ll pay it back... and I understand, based on my credit scre, that they could be a little leery... but if I could just get OUT of this rut, I could really get moving and this building is the way to do it!  $5000 isnt that much... but then again... this is my HOUSE I`m talking about...
If  you were me, would you try for a loan?  Thusfar, Ive done everything myself, but I need a jumpstart here...
YvetteYvetteMarie2007-2-15 10:48:36


  • MNGrillGuyMNGrillGuy subscriber Posts: 2 Member
    You should be able to get a HELOC from the local bank.  Have you tried that?  Even with poor credit, you have a house that is paid off and probably has market value far above the $5K you need.  Interest rate would probably be around 10%.  That`s what I`d do.     
  • robertjrobertj subscriber Posts: 0 Member
    You`re not seeking a lot of capital - but it would be a good exercise to develop a basic financial projection for the business. It need not be elaborate but will be helpful in discussions with possible lenders. Even though a 3 year loan will have a monthly payment of $161 - it`s always good to show them "numbers" that tell how you will be able to make the payments.
    There are micro loan programs tht could provide the amount you are seeking.
    All the best,
    Robert Johnson
  • AdvisorGarageAdvisorGarage subscriber Posts: 10
    Another option would be to take a look at prosper.com
    This is a site where you can borrow money, set your own interest rate and people `bid` to lend you money.  Credit is not a core driver but will increase the interest rate...you won`t need to use you house as collateral either..
    Good luck with everything...sounds like its all going to turn out great!
  • MarkPMarkP subscriber Posts: 0
    You didn`t mention if this building is in the larger town, or the smaller one you`re in now.
    If you`re going to the new town you will also have a period of negative cash flow as you work on the business - advertising, etc.MarkP2007-2-15 20:27:53
  • stonesledgestonesledge subscriber Posts: 608 Silver Level Member
    getting the landlord to do improvements and add it to your monthly sounds like the best bet. he may than want a longer lease to secure his costs.
  • MojoeMojoe subscriber Posts: 0
    A grant sounds like your best idea as far as funding goes.  I think there are a few grants you can apply for simply because you`re a single mother and small business owner.  Your bank may be able to provide information regarding this or you might try to Google it.  I`m sure you`ll find a much simpler way to get a micro loan of $5,000. 
  • YvetteMarieYvetteMarie subscriber Posts: 8
    Thank you for the reply guys...  I owe you all a round of cheetos!  I`m going to be brave and see what I can come up with.. I`ll keep you posted!
  • robertjrobertj subscriber Posts: 0 Member

    Thank you for the reply guys...  I owe you all a round of cheetos!  I`m going to be brave and see what I can come up with.. I`ll keep you posted!

    I`m glad we all were able to be of help.
    Good luck.  Let me know if I can be of any further assistance or if you have more questions.
    Robert Johnsonrobertj2007-2-20 13:46:14
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