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I need help finding startup funding for franchise
AceMan
subscriber Posts: 2
My wife and I are planning on opening an Ace Hardware store. We have been approved for the SBA loan, but we are having problems coming up with the $150,000 capital upfront to first put into the project.
We have great credit and the proforma and shows the business will be very successful, but I just don`t have equity in my home and I don`t want to touch my 401K right now. The lease for the location is all worked out (at a great rate!) and they are just waiting for us to come up with this upfront money. I also have a successful career and will be keeping it, my wife will be managing the store. So we are not dependant on the income from the business at all.
So any ideas of how to get a loan for this money would be greatly appreciated!
We have great credit and the proforma and shows the business will be very successful, but I just don`t have equity in my home and I don`t want to touch my 401K right now. The lease for the location is all worked out (at a great rate!) and they are just waiting for us to come up with this upfront money. I also have a successful career and will be keeping it, my wife will be managing the store. So we are not dependant on the income from the business at all.
So any ideas of how to get a loan for this money would be greatly appreciated!
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Comments
Having a great rate on a loan is nice, but since they want $150K upfront - it may not be your optimum solution.
However, to determine what options are available and which would be the optimum for you - I`d need more information.
Send me a PM or contact me directly using robert@bizgrowthmasters.com if you want to discuss your specific situation.
robertj2/21/2009 11:06 AM
I am putting in $50,000 of my own money, but that really wasn`t the question...
I see you have a 401K, and understand that you don;t want to touch it, but....why would you not want to borrow from your 401K to start your business. The business would be paying you back with interest. The smartest thing you can do is borrow fom yourself and have the company pay you back with interest. Why would you want to borrow from someone else and pay them back with interest???? Just my 2 cents....everyone has to do what they feel most comfortable with. Good Luck....
I agree with sabeier! And I do that all the time... I usually borrow from myself. At least if I owe somebody money, it would be me and not somebody else who would give me a hard time with interest and all that.