Are start up loans possible?

[Anonymous]

I’m looking to open a new retail business in July. I’ll be forming the LLC and getting my EIN in January. I will be doing some online sales between Jan-Jul but only about 1000-2000 per month. I need to get a loan to open a store front and I’m estimating 45k is the amount of the loan, and I will be putting in 5-7k. My personal credit at the time is going to be somewhere between 650-700, not great.

Is it possible to get an unsecured business loan for a startup before officially opening? Should I use those 7 months to build some business credit? I’m not sure the best route to go here to get funding.

[SouthJamaica]

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@Anonymous wrote:
I’m looking to open a new retail business in July. I’ll be forming the LLC and getting my EIN in January. I will be doing some online sales between Jan-Jul but only about 1000-2000 per month. I need to get a loan to open a store front and I’m estimating 45k is the amount of the loan, and I will be putting in 5-7k. My personal credit at the time is going to be somewhere between 650-700, not great.

Is it possible to get an unsecured business loan for a startup before officially opening? Should I use those 7 months to build some business credit? I’m not sure the best route to go here to get funding.

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IMHO when you're starting a business like that the first investor is y.o.u. You are going to have to come up with more capital, either from yourself or from friends and family, or start on a smaller scale, with a lower overhead. A storefront is high overhead.

I don't think there's any way you can get a loan other than a personal loan, or at least a personally guaranteed loan. And most small business loans are secured, not unsecured.

Unless of course there is some kind of government program in your area to assist people starting businesses.

[GApeachy]

@Anonymous wrote:
 Should I use those 7 months to build some business credit? I’m not sure the best route to go here to get funding.

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Build your biz credit, the better the credit the better the terms. 

I was able to build ours, biz credit, in 6 months.  Different from you is the fact that we have a long biz history, however we never built biz credit, ever.  It was always our personal credit that was the way we funded our big $$ needs. So no credit is no credit....had some work to do. Read the biz section through and through to see how it's done; what works and what doesn't.  Then figure out what will be the best starter's that your personal scores can support and go from there.  I pay Exp. Biz to monitor and give me an idea of the direction we're going in.  It's 179/yr that I find well worth the money.  Research that too, D&b research- they have a free credit builder.

Now, after 6 months of following advice in the MyFico Biz building section, we've obtained some really sweet biz cc's,  some 30/60 net, loc, loans just slowly but steady adding to our tl's while watching score improvements and then taking another step....baby steps.  It didn't take long, although it does seem that way, esp. when you're excited and anxious to get the ball rolling, so whatever you do now until July is going to help you and your biz scores. 

Just take it ONE step at a time, come here for advice, don't jump on just any offer, do your research.  You can build your credit and biz credit at the same time but the better your personal credit the better your outcome for building and obtaining some good terms for your new biz.  I don't worry about PG or Non-Pg, it's more the terms and how the tl's will be working tools for us.  Later, you can pick and choose but for now.....following this Business Section here on how to start a biz and est. credit is essential.  GL!  

[mikesonthemend]

As a retailer, your wholesaler should be willing to give you credit. If they are not, don't have high hopes for others to front you.

[Anonymous]

Just a thought, but with the difficulties retail is having these days I would try to focus more on online sales. Physical space is a costly venture.

IDK what the nature of your goods are, but you might do better running it our of your house and renting a small storage unit for stock.

The money you would haev put towards renting a place, plus utilities,  and insurance could go for broader advertising.