What is more important business plan or credit score

916salespro

I have posted on startupnation before, but as an advisor.  Now I am  seeking help or advise.
I am a true entrepreneuer and I have worked for myself for the past 7 years.  Recently I had to seperate myself from a business partnership and create another company.  My business has three seperate revenue streams.
1) We provide direct outside sales representation to small business owners.  Essentially, we function as manufacturing reps but for local small businesses.
2) We do business and marketing plans for start-up and companies seeking to grow.
3) We are a disabled veterans business enterprise.  Located in California, this provides us with unlimited opportunities for contracting with city, county and state government.
My problem is that I cannot secure funding to support basic operating expenses for the next 12 months.  Banks that claim to have special programs for disabled veteran business owners turn me down because of my credit score.  Angel investors turn me down because my business plan does not show explosive growth.  Prosper.com, circlelending.com and all of the internet based unsecured lending companies have turned me down because of my credit score.
I have spoken with lending professionals with various levels of experience and I keep hearing the same advise; "own property and use the equity, get a partner with assets, borrow from family."  None of those work for me at this time.
Now I realize I damaged my credit by taking far too many risks in the past and raising my score will take time.  At the same time, I have 6 clients that are simply waiting for sales representation and I don`t have the funds to recruit and hire them.  Worst of all, I have to pass on certain contracting opportunities because I cannot accept a job where payment takes 45 to 60 days and I have to pay people every two weeks.  I currently have myself, two part-time sales reps and 4 loyal clients that together provides my company with average sales of $5,000 monthly.  So I am still extremely small, but I have a solid plan and marketing strategy.
I have run out of good ideas.  

916salespro

For certain clients I could charge them upfront, but on average this would run counter to my business model.  As an example, just today I landed another client who is seeking direct outside sales representation.  They already have accounts that they are handing over for us to manage.  However, these clients just placed orders in the last two months, and they will have to place orders again for at least two months.  We should earn $10,000 in commissions from this one account, but I need to hire somebody now.  I can`t afford to pay a base of say $2,000 at this moment, so if I want the account I have to do it myself.  This will hurt my other clients sales, which I really don`t want.
Bottom line is that I will make it happen, but i just feel there has to be a way to help companies that are in my same position.

916salespro

Thank you for your advise.  I am in the process of speaking with an economic development corp in my area.  Should have an answer next week.

robertj

Thomas,
Do you only represent local companies?
As to your capital situation - how much are you seeking?
Robert Johnson

916salespro

Yes currently I only represent companies in California.  My goal is to create a nationwide sales force devoted to representing small business owners.
As to my funding requirements, $25,000 to $50,000 will be more than enough.  With the right combination of sales reps working with me, we will see huge profit margins within 12 to 24 months.

AdvisorGarage

Another route you may want to look at is Prosper. I hear this may be an avenue for micro loans...
Andrewhttp://www.AdvisorGarage.com</A>
 

916salespro

Thanks, yes I do know about it.  Tried once but did not get enough support.  I am actually in the process of re-doing my business plan so it will appeal more to clients, business associates and personal friends.

Financial1

Hi Thomas,

Ralph4

I have posted on startupnation before, but as an advisor.  Now I am  seeking help or advise.I am a true entrepreneuer and I have worked for myself for the past 7 years.  Recently I had to seperate myself from a business partnership and create another company.  My business has three seperate revenue streams.1) We provide direct outside sales representation to small business owners.  Essentially, we function as manufacturing reps but for local small businesses.2) We do business and marketing plans for start-up and companies seeking to grow.3) We are a disabled veterans business enterprise.  Located in California, this provides us with unlimited opportunities for contracting with city, county and state government.My problem is that I cannot secure funding to support basic operating expenses for the next 12 months.  Banks that claim to have special programs for disabled veteran business owners turn me down because of my credit score.  Angel investors turn me down because my business plan does not show explosive growth.  Prosper.com, circlelending.com and all of the internet based unsecured lending companies have turned me down because of my credit score.I have spoken with lending professionals with various levels of experience and I keep hearing the same advise; "own property and use the equity, get a partner with assets, borrow from family."  None of those work for me at this time.Now I realize I damaged my credit by taking far too many risks in the past and raising my score will take time.  At the same time, I have 6 clients that are simply waiting for sales representation and I don`t have the funds to recruit and hire them.  Worst of all, I have to pass on certain contracting opportunities because I cannot accept a job where payment takes 45 to 60 days and I have to pay people every two weeks.  I currently have myself, two part-time sales reps and 4 loyal clients that together provides my company with average sales of $5,000 monthly.  So I am still extremely small, but I have a solid plan and marketing strategy.I have run out of good ideas.  

I have a suggestion for on online site I applied at that may be of some help.  However, I would like to point out that even though you have a low credit score, with no discrepancies and having no bankruptcy in the past seven years, you are eligible for under a different program used by www.thesnaploan.com.
Let me know if the link is helpful.  I`m still waiting on my approval.  I expect any day now, thinking positive.

cashprior

Both are equally important... but it depends on what type of funding option you want to go for.

Consultnow

In addition to factoring you may want to look into private lines of credit, whereby investors will provide you short term cash for operations assuming you have executed contracts.  Check the blog at www.developmentstyles.com the guy there was able to provide us with similar solutions.  I won`t lie, the cost of capital is expensive, but they can provide you the corporate references that may allow you to break into insitutional debt.  He can also provide you restructuring advice that will allow you to seperate you from your company and allow your company to build a credit profile of its own.