Just need a little more capital for my retail store

misterrandommisterrandom Posts: 1subscriber
edited April 2012 in Startup Funding
I`m opening a retail store next month through my business after more than 2 years of marketing and building websites for other retail stores and small businesses.  I have retail space, computers, point of sale terminal, display fixtures and shelves, and some product inventory.  I need to purchase additional product inventory and have enough cash left to replenish my stock before items sell out.  Any ideas on where to go for funding within 1-2 weeks?
 
Here`s what I have going for me.  I already have most of what I need for the grand opening.  My products will fill a currently unmet demand and is so unique, it is all but guaranteed to be featured on the local news.  Our goal is to be featured on the national news.  Even if that doesn`t happen, we have a series of humorous videos prepared for distribution in a large scale grass roots campaign.  I have a 15 page business plan that explains the marketing plan in greater detail.
 
Here`s my problem.  Banks look at past performance more than they do a future business plan.  My tax records don`t show much business income because I was employed by someone else at the same time as I was consulting through my business.  Also my credit report shows a higher debt ratio than banks would like to see with a credit score in the mid 640`s.  I am currently wading through paperwork for a couple of banks but I`m wondering if there is a better way to obtain short term financing.  The overhead is cheap.  We expect a profit by the end of December.  Should I try to explain this to banks or should I seek funding elsewhere?
 
Thanks,
Tim

Comments

  • txbassguytxbassguy Posts: 0subscriber
    i`m confused as to why you need more inventory. if you`re product is truly unique - then your product will sell. then use that money to buy more inventory. i think you`ll be fine. i`ve yet to find something that is `truly` unique that meets a great unmet demand. but good luck - i wish you the best.
  • stonesledgestonesledge Posts: 8subscriber
    Tim,
    Have you tried a personal line of credit, secured, unsecured?
     
    Erin
     
  • JimSprouseJimSprouse Posts: 3subscriber
    Hey Tim
    Now a days credit cards are super easy to get even if credit isn`t great.  If you don`t need much capital you might think about it because it`s normally very quick too.  And if you plan on paying it off quickly you won`t incur those nasty finance charges.  Just a thought.
    Jim
  • daleyfla99daleyfla99 Posts: 1subscriber
    Home Equity line.  Interest is deductible.  But I am with txbassguy, what do you need more inventory for?  Pretty signs in the spaces on the shelves between your inventory until you move some of it.  Or books about what you sell....
  • misterrandommisterrandom Posts: 1subscriber
    Ok, I was a little too vague in my initial post.  It`s not so much the product that`s unique as it is the concept of the store.  We will be selling toys that are not bound with twist ties and rubber bands inside plastic packaging that scissors can hardly get through.  On top of that, most toys are painted with vegetable dyes and all are tested in store for unsafe levels of lead paint.  Toys are not a unique item, but unfortunately toys with easy to open packaging with no lead paint are becoming rare.  We will be the first store to specialize in this way.
     
    Our current inventory is quite low and we don`t have anywhere near the selection we should have.  Toy stores need to be fully stocked in November and December for holiday sales which is why I asked about finding a good source of short (or long) term funding.  Can I use a cosigner with an 800 credit score to improve my chances of getting a loan?
  • HerseykissHerseykiss Posts: 0subscriber
    Hi Tim:
     
    You may want to try Fundraiser 1.0.  A major retailer needed to raise funds before their grand opening. Using this program they were able to raise $92,687 in less than 90 days. I used the program to earn enough to pay for my Online Travel Website. For more information email me at [email protected]
  • RoblueRoblue Posts: 0subscriber

    Tim,Have you tried a personal line of credit, secured, unsecured?  Erin 

    Great question.  This could be the ideal venue of approach for you. 
  • rickymikrickymik Posts: 1subscriber
    Finding capital to start a consignment shop takes some planning and research. The processes for capital financing and commercial loans have been tightened because of the credit crunch. Small business owners can no longer expect an easy loan process.
  • asapccasapcc Posts: 0subscriber
    As others have mentioned, it might be worth considering a credit card if you don't need a huge amount of capital. Then, as your business grows and your credit improves, you can try for a loan or other financing options...
  • roylance7772roylance7772 Posts: 0subscriber
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  • iPledgiPledg Posts: 0subscriber
    Have you considered crowd funding? Whilst moves are being made to allow equity crowd funding, the existing form of pledge crowd funding allows start ups and small business to fund their initiatives without loans that need to be repaid or the surrender of equity in the enterprise. Have a read of this useful blog or this useful site
  • allianceonellcallianceonellc Posts: 0subscriber
    The best and the easiest way to get funding to start up your retail store is to get business funding online. Yes, its true that one can easily get a start up money to fund their business. Here is one link of the site: http://allianceonellc.com/, for your reference.
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