Distressed - Lack of Business Financing

by Susie
(Texas)

Financing my business has proved to be a real stumbling block for me. I have 27 years experience in the Beauty Industry.
I've encountered many opportunities in my career, but the lack of a Finance education along with sales,marketing,and budgeting, my business has failed.

I have a great location this time , a sound business plan, and good discount from my vendors that will allow me to have a higher profit margin. I have gone to the banks, Accion, a non- profit organization, and leasing companies to get a loan or credit line, and the result is the same, "CREDIT SCORE" OR LACK OF A HIGH SCORE.

My question is,Where can I get financing with a score of 500?
Female
Hispanic
Distressed
Susie P.

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Distressed - Lack of Business Financing

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Dec 06, 2007

Beauty Parlor Business Financing
by: Geri

Geri,
Did you see that there is a post right below yours that talks about having a partner who was established in the business? When I read your post that gave me the idea that you might look for a partner, someone who has good credit. I know it would be real hard to be a minority partner or a silent partner when the business is yours, but at least you would be able to get your business up and running.

Sep 14, 2007

Try Economic Devleopment Groups
by: Jason

You don't say where you are, but sometimes there are groups that in charge of developing economic areas. If there is an agency like that in your area, go talk with them. If they don't have anything, they might be able to point you in the right direction.

Sep 14, 2007

The Business Finance Game Today
by: Alice

Susie,
It's too bad that you didn't have all your plans together about six months ago. Six months ago, it was still pretty easy to finance a business. Credit scores were important, but they weren't the only consideration. I know the bank I work for has really tightened up with its loan requirements. Loans that would have gotten funded a few months ago are being turned down now. And we're asking for a lot more documentation than we used to ask for too. I have always found women's business groups to be very helpful with this type of information. If you're not a member, you might consider joining. See what other businesses in your area are doing. Alice Hennessey in Illinois

Sep 13, 2007

Business Financing with Low Credit Scores
by: MaryAnn

Susie,
Figuring out how to finance your business has got to be very frustrating. Here are some hard questions that your banker/lender is going to ask:
(1) Why did your previous business fail?
(2) Why didn't you save enough money to finance your new business?
(3) Why haven't you taken any courses to learn business finance?
(4) What makes you think you can start a successful business in this economy?

These sound harsh, but it is the reality. When you can figure out to respond to these questions, then go for funding.

If your business can start on limited financing, try the SBA. There are programs that will provide you with the mentoring you need, as well as limited financing. Some of the programs will look for collateral other than usual assets, and will bend the rules a bit on credit reports.

Another idea: How about opening up in a distressed area of town, and hire beauty school students to work for you? That would give you a way to get started again.

Or is there a way that you could train "beautician assistants" or nail salon attendants? The idea is to find a way back into the industry to prove that you can run an operation profitably. Then look for funding for your own business.

Good luck. I know it will be challening.

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Sep 13, 2007
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Submitted by: MaryAnn

Title

Comment
Susie, Figuring out how to finance your business has got to be very frustrating. Here are some hard questions that your banker/lender is going to ask: (1) Why did your previous business fail? (2) Why didn't you save enough money to finance your new business? (3) Why haven't you taken any courses to learn business finance? (4) What makes you think you can start a successful business in this economy? These sound harsh, but it is the reality. When you can figure out to respond to these questions, then go for funding. If your business can start on limited financing, try the SBA. There are programs that will provide you with the mentoring you need, as well as limited financing. Some of the programs will look for collateral other than usual assets, and will bend the rules a bit on credit reports. Another idea: How about opening up in a distressed area of town, and hire beauty school students to work for you? That would give you a way to get started again. Or is there a way that you could train "beautician assistants" or nail salon attendants? The idea is to find a way back into the industry to prove that you can run an operation profitably. Then look for funding for your own business. Good luck. I know it will be challening.

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