After spending over 20 years in the client services business (attorney, business broker, funding consultant) and then venturing into the wild world of entrepreneurship, I have seen first hand how extremely important being sufficiently capitalized is to any venture that you undertake.  Over the past several years, I have received numerous inquiries about receiving start-up business funding.  I wanted to take a few minutes to clarify the types of loans/funding you are probably looking to get and the pros and cons associated with each.

First thing to remember - loans will fall into 2 categories - Business Loans and Personal Loans.

Business Loans may or may not consider your personal credit score (they usually do), but the one constant is that YOU MUST HAVE BEEN IN BUSINESS FOR A MINIMUM 6 MONTHS AND YOU MUST BE GENERATING REVENUE.  The different types of Business funding include:

Term Loan

Business Line of Credit

Equipment Financing

SBA Loans

Accounts Receivable Financing

Merchant Cash Advance (MCA)

Working Capital Loans

Franchise Financing

There are benefits to each of these types of loans, but with the exception of equipment financing, there is a minimum time in business requirement and you must be generating revenue. 

FOR ALL PRE-REVENUE business funding needs, you have THREE OPTIONS:

1) Equipment Funding - Must have LLC/business organization already set up. You must have equipment already selected.  Example.  A new landscaping company that looks to purchase 10 new mowers and a trailer.  The drawback is that the money is only for the equipment and not any extra for working capital.

2) Traditional personal loan - This one is pretty straight forward. Use your personal credit to get a loan and use the proceeds for your business startup.  The drawback of this is that the amounts are generally on the lower end of the spectrum $10k-30k range.

3) Hybrid program - The hybrid program is a program that uses your personal credit to qualify, with the knowledge that the funds will be used for a business start-up (or any other purpose).  The benefit of this type of loan product is that you can receive between 10k-400k!

The hybrid program that I am familiar with has a 680 credit score requirement and proof of income of $27k/year or more.  Also, not a lot of new credit lines/inquiries on your report and no open bankruptcies. With just those requirements, you can get 100k+!

The "drawback" of this type of money is although it is easy to qualify for, you will pay 15% fee upon receiving the funding.  (You are seeking 100k - you will receive 115k and pay the 15k fee). 

When I first heard this, I thought it was A LOT! But when factoring the ease of qualifying for the money, the amount you can qualify for, and the fact that you can write-off 100% of that amount just means that you are paying that much less in taxes at the end of the year! 

Of course 90% of true business start-ups (pre-revenue) are choosing this last option due to the easy of qualification and the amount that you can get funded.  

If you are interested in ANY of the funding programs, please reach of to me directly at 

(404) 441-7860 text

 or visit my site at

https://azquire.wixsite.com/azquirefunding