Question about funding my startup

digiology

Hi all,

Let me explain my situation, I have a great business idea but need between €60,000 and €80,000 to get it going.
The good news is that its fairly low risk, most of the money will go towards equipment that can be sold second hand at a 10%-15% loss if the business tanks (thats assuming I get vat off the equipment). General running costs should be very little.

A bank loan would be ideal, but if there are better options please do tell.
In let say a year and a half when hopefully banks are lending a little more what are my chances of getting a loan like this that I wouldn't have to start paying back for 9-12 months.
I mean, during the boom would this have been realistic?

I have no property and I would be using my parents as guarantor (both home-owners). I would hopefully be over 6 months employed in a job at the time of applying.

Failing that, what other options are there for my situation?

tombull82

digiology wrote: »

Hi all,

Let me explain my situation, I have a great business idea but need between €60,000 and €80,000 to get it going.
The good news is that its fairly low risk, most of the money will go towards equipment that can be sold second hand at a 10%-15% loss if the business tanks (thats assuming I get vat off the equipment). General running costs should be very little.

A bank loan would be ideal, but if there are better options please do tell.
In let say a year and a half when hopefully banks are lending a little more what are my chances of getting a loan like this that I wouldn't have to start paying back for 9-12 months.
I mean, during the boom would this have been realistic?

I have no property and I would be using my parents as guarantor (both home-owners). I would hopefully be over 6 months employed in a job at the time of applying.

Failing that, what other options are there for my situation?

BOI are doing get packages for startups at present and are offering startup loans of upto €300k but I'd say you would want to have a gold plated business plan to get big bucks off them..

digiology

Thanks, I haven't done much planning yet but its a very niche thing that would be hard to convince anyone of its potential unless they were familiar with market.
Like I said, it is low risk given that its going in to equipment that can be sold off, I would hope that would work in my favor.

tombull82

digiology wrote: »

Thanks, I haven't done much planning yet but its a very niche thing that would be hard to convince anyone of its potential unless they were familiar with market.
Like I said, it is low risk given that its going in to equipment that can be sold off, I would hope that would work in my favor.

NO I would definately not go in say that if it does not work the equipment can be sold off to recoupe the costs, the first thing they will then say to you is that you are not even confident in the plan yourself and hence looking to put your their money into it and not your own.. be careful as everything can be turned against you. You will have to think of every question that can possibly be put to you and have a good answer for them..

digiology

tombull82 wrote: »

NO I would definately not go in say that if it does not work the equipment can be sold off to recoupe the costs, the first thing they will then say to you is that you are not even confident in the plan yourself and hence looking to put your their money into it and not your own.. be careful as everything can be turned against you. You will have to think of every question that can possibly be put to you and have a good answer for them..

Good point but wouldn't it be good to highlight the fact that the worst case scenario is, well, not so bad?

I'm very confident in my plan, or at least I should be by the time I need to apply for the loan. I'd put my own money into it if I had any

Bandara

IMO the banks will not want to deal with you.

You have no assets, you are bringing nothing to the table and are requiring 100% funding and don't want to start repaying the loan for a year.

Your parents as guarantor isn't of any interest to a bank, they are not exactly going to find it easy to have your parents throw out of their homes if you fail or do a runner with the money.

Its a business loan and requires the normal business criteria, they would at the very minimum be looking for 50% funding from you.

With regard to how you do it, why do you not have your folks release 50k equity in their properties? You can then get the other 50k from the bank, your immediate repayments will only be half as you can defer your folks for a year (with their agreement of course).

If they are willing to go guarantor then this is not really all that different, except they are excused from any risk other than the 50k.

As a matter of interest why can you not start to pay back the loan within the first year?

digiology

Hammertime wrote: »

IMO the banks will not want to deal with you.

You have no assets, you are bringing nothing to the table and are requiring 100% funding and don't want to start repaying the loan for a year.

Your parents as guarantor isn't of any interest to a bank, they are not exactly going to find it easy to have your parents throw out of their homes if you fail or do a runner with the money.

Its a business loan and requires the normal business criteria, they would at the very minimum be looking for 50% funding from you.

With regard to how you do it, why do you not have your folks release 50k equity in their properties? You can then get the other 50k from the bank, your immediate repayments will only be half as you can defer your folks for a year (with their agreement of course).

If they are willing to go guarantor then this is not really all that different, except they are excused from any risk other than the 50k.

Thanks, its nice to know what's realistic. I never thought about releasing equity, and will look into this.

Hammertime wrote: »

As a matter of interest why can you not start to pay back the loan within the first year?

I won't be making anything substantial until at least 3 months after the loan and perhaps even 6 months. Admittedly I've never applied for a loan and am unsure about what kind of monthly payments to expect. It might be feasible to begin paying it back immediately, especially if it makes my chances better.

Thanks again for your help.

ecaf

just to let you know, we are in the same position as yourself. New to the business world and going asking banks for a loan. Bringing a bit ourselves to the table, but most banks won't bite at all, and we even have guaranteed business (sub-contracting) for a well established business, with a letter from them guaranteeing 5 years work and also projected figures for the next year showing that we will be out of the red in 3 - 4 months, and well able to pay back the loan after that. We are taking over existing work, so the figures drawn up by the existing business are correct.
We didn't go in very well prepared (in terms of a business plan) TBH but I am in the process of revising that. We had financial advise from an accountant, but he was sure we wouldn't have much trouble given the figures we had laid out, and we still do.

Plus be ready for over eager staff trying to pull you in, but once you've made the application, be prepared never to be able to contact them again! It is so frustrating, and I'm trying to keep a full time job on the go myself, so I don't really have the time to keep chasing banks up all day.

Just thought I'd share this so that maybe you can be far more prepared than we were. Also you will need to bring some money to the table, or they will just refuse you straight away. Hammertime has some good advise there.

Mr Biz

Hi all,

Let me explain my situation, I have a great business idea but need between €60,000 and €80,000 to get it going.
The good news is that its fairly low risk, most of the money will go towards equipment that can be sold second hand at a 10%-15% loss if the business tanks (thats assuming I get vat off the equipment). General running costs should be very little.

A bank loan would be ideal, but if there are better options please do tell.
In let say a year and a half when hopefully banks are lending a little more what are my chances of getting a loan like this that I wouldn't have to start paying back for 9-12 months.
I mean, during the boom would this have been realistic?

I have no property and I would be using my parents as guarantor (both home-owners). I would hopefully be over 6 months employed in a job at the time of applying.

Failing that, what other options are there for my situation?

Have you thought about getting an investor on board?
If it's low risk as you say, many might jump at the chance..

Have a look at www.businessangels.ie
No association

Good luck!

digiology

Mr Biz wrote: »

Have you thought about getting an investor on board?
If it's low risk as you say, many might jump at the chance..

Have a look at www.businessangels.ie
No association

Good luck!

Yeah I thought about that, I'm not comfortable selling off part of the company but its an option.
I reckon we'd be bringing in between 6,000 and 9,000 euro a month if we got an 80,000 euro investment so I reckon they would want a big chunk of it.
That said it is low risk and its also very scalable, all profit would be used to expand capacity (its a web service) meaning we could be earning double the next year, quadruple the next etc.

Thanks, I will keep this in mind.

byrne0f56789

Look to lease your equipment. That's probably easier than getting a bank loan to buy the equipment.

digiology

byrne0f56789 wrote: »

Look to lease your equipment. That's probably easier than getting a bank loan to buy the equipment.

Its quite specialized equipment which is hard to get hold of unless you buy it, at least thats true in Ireland.

I might be able to convince the companies that make the equipment to let me use it for free for a period, it will act as a form of advertising for them.

Overall, I reckon I'll have to do some combination of what everyone has suggested.
Thanks everyone, keep 'em coming

Spinnaker

Read up on Finance Leases and Operating Leases. The former might just enable you (versus raising full capital) if everything else is in line.

Finance leasing is particularly applied to specialist equipment often directly by the bigger vendors or indirectly by a bank section or international lease provider recommended by and known to the vendor. (The vendor needs them to facilitate the sale just like a car dealer does).

Note you will still need to provide security and other assurances.

You can find cost calculators on line. Here's a rough one... (no connection) http://www.financeirl.ie/commercialf.html

antoinolachtnai

You probably need an investor who will give you a mix of debt (secured on the machinery) and equity capital. This can be done, if the figures are really solid. Maybe the bank would go for it if it were well presented.

Can you get your prospective customers to make written commitments or even write letters of intent to you about this?

digiology

antoinolachtnai wrote: »

You probably need an investor who will give you a mix of debt (secured on the machinery) and equity capital. This can be done, if the figures are really solid. Maybe the bank would go for it if it were well presented.

I'm not sure I fully understand you but it sounds like you're saying that I can have an arrangement where the investor pays for the machinery but has it as collateral?
About the bank, I presume you mean after some investment in the business has been made then I might be able get the bank to lend additional funds to me? Or by 'investor' did you mean the bank?
Sorry, I'm not up on the business lingo (yet).

antoinolachtnai wrote: »

Can you get your prospective customers to make written commitments or even write letters of intent to you about this?

No, I'm offering services to consumers and I'd rather keep a tight lid on it until its launched if thats possible.

digiology

There is one other option. I could go to the companies who make the equipment and offer them a percentage of the company in exchange for a year loan of the equipment.
It would be good advertising for them but I'm not sure how willing they'd be willing to give some startup 2-6 grand of equipment. The percentage wouldn't be likely to make them much money (compared to their revenues) but would show that we're a real company and not some scammer.

tombull82

was it not "60-80k which most of would be the equipment cost"??

tombull82

truth is nobody here can really give you the correct answer as you could be looking at thousands of different markets. Its hard to tell how to get funding without knowing what your doing, and i know you can't really disclose that at present

digiology

tombull82 wrote: »

was it not "60-80k which most of would be the equipment cost"??

Sorry let me clarify. Each unit costs between 1 and 4 grand, I need one or two units from various manufacturers.
The number I need is really down to preference, I'd like to launch with about 15 but 10 would be cool. In theory I could squeeze everything into about 40,000 but I would prefer to have more for a launch.
My capacity to serve customers is limited by how many units I get a hold of but I can scale everything up once I'm making profit.

kenbrady

digiology wrote: »

Sorry let me clarify. Each unit costs between 1 and 4 grand, I need one or two units from various manufacturers.
The number I need is really down to preference, I'd like to launch with about 15 but 10 would be cool. In theory I could squeeze everything into about 40,000 but I would prefer to have more for a launch.


My capacity to serve customers is limited by how many units I get a hold of but I can scale everything up once I'm making profit.

How are you going to get your first customer ?

There are companies that have no issues with capacity to serve customers and they still can't get funding. An iphone app can serve millions of customers and has access to a market of millions. But the problem is who will buy the app and why, not how many they can serve.

Save up and buy one unit, nobody will ever fund anything to meet extra capacity of customer you don't have.

antoinolachtnai

If it's a consumer play and it's a new product, it's a marketing game, especially if you want to launch sort of big, which is what you want to do.

That is where the cost of launching a venture like this comes in.

digiology

How are you going to get your first customer ?

There are companies that have no issues with capacity to serve customers and they still can't get funding. An iphone app can serve millions of customers and has access to a market of millions. But the problem is who will buy the app and why, not how many they can serve.

Save up and buy one unit, nobody will ever fund anything to meet extra capacity of customer you don't have.

I should say that each unit will only serve one customer at a time, they will be using it remotely which more cost effectively than buying something they're only going to use for an hour or two a week. They book time slots so 10 units may serve 200-300 users let say but only 10 concurrently.
Consumers will want variety and one unit will make the service very poor.

This may sound naive but the market I'm targeting will spread this by word of mouth (forums probably) and very little marketing will have to be done, in fact if I marketed it I'd already be short on capacity.

Funds may come from the Government (at EU, national and local level) and from a number of organisations such as Local Enterprise Agencies. Many major private companies collaborate with such organisations to provide finance in the form of grants and loans. Banks are more likely to help small businesses that are receiving support and advice from these agencies.

I will definitely pursue this but I would have to change my business plan a little as they would probably be looking for job creation opportunities, not simply a return on the investment.
For the first year this would probably be running from my home if I can get a fast enough broadband connection. That way all profit can go in to increasing capacity.
There are opportunities for jobs (support, development) but I'd need double the investment to pay for office space and salaries if I were to start employing immediately.

kenbrady

digiology wrote: »

This may sound naive but the market I'm targeting will spread this by word of mouth (forums probably) and very little marketing will have to be done, in fact if I marketed it I'd already be short on capacity.

Let's just say that is true (but it's not)

Why is there no people doing it at the moment ?

What's to stop a competitor ? with more money coming in and offering the service cheaper, as they can buy more machines, get better prices and offer a faster turn around to customers. Hell they might even spend some money on marketing.

antoinolachtnai

So how are you going to get your first customer? You need a good few customers to begin with to get any word of mouth.

I would still say you are underestimating the cost of marketing. Have you done any market research to determine the best price?

It is hard to say without knowing more about the product.

digiology

antoinolachtnai wrote: »

So how are you going to get your first customer? You need a good few customers to begin with to get any word of mouth.

I would still say you are underestimating the cost of marketing. Have you done any market research to determine the best price?

It is hard to say without knowing more about the product.

Perhaps I am, I cannot see the need for marketing if the idea is really as useful as I think it is. Its the kind of thing that people spend hours in forums talking about, this is pretty new and should spread provided I have a good service from day 1.

There is nothing else like this around so I would imagine I'd set the price a little higher than I'd pay for it (and lower the price later if necessary) but make sure I get plenty of opinions before the launch.

I imagine that it'd be something like 1 euro an hour (20 minutes would be fine for most customers) to use something that they would normally pay 2000 euro to buy and only use for an hour or two a week.

I realize that this is a little pointless without telling you more about the market I'm targeting. I think I know what my options are now.

antoinolachtnai

Marketing is not just promotion. There is a lot more to marketing than that.

My opinion - I would say, like someone else, get one unit, try it out, see how it goes with some people you know from forums. You will learn loads from that with very little risk.

digiology

antoinolachtnai wrote: »

Marketing is not just promotion. There is a lot more to marketing than that.

My opinion - I would say, like someone else, get one unit, try it out, see how it goes with some people you know from forums. You will learn loads from that with very little risk.

Oh I'll be buying one unit, for testing that is. Launching with one is suicide, I'd have a competitor on my ass before I have adequate capacity.

antoinolachtnai

If the market is really as big and solid as you think, then 80k and one of ten different units isn't going to provide you with a great deal of capacity to fend off a serious competitor either.

Maybe you need a partnership with someone who can provide the extra capacity if and as you need it?

digiology

antoinolachtnai wrote: »

If the market is really as big and solid as you think, then 80k and one of ten different units isn't going to provide you with a great deal of capacity to fend off a serious competitor either.

Maybe you need a partnership with someone who can provide the extra capacity if and as you need it?

Great question. Ideally I'd start with half a million but that aint going to happen. The software will easily take a year to develop (I'm a software engineer and am working with someone else) so that gives us some time to be ahead of the curve.
We could patent it but thats just more money wasted that could be put into capacity.
If we can start with 60-80k that'll be a decent service to start with and allow us to double the capacity the next year with the profit if all goes well. I would imagine that once its launched we'd find it much easier to find additional investment but well have to start with a good service first.

I'm not sure who would partner with us, I know you can't help with that because the product is a secret

antoinolachtnai

Well, this 'unit' that you're buying, it must have a supplier, and one of those suppliers would be the obvious partner.

A year sounds like a long time to wait to launch - someone could have stolen a march on you by then. If it's really a big potential, you might need to get more money in order to allow you to be appropriately aggressive.

kenbrady

digiology wrote: »

Great question. Ideally I'd start with half a million but that aint going to happen. The software will easily take a year to develop (I'm a software engineer and am working with someone else) so that gives us some time to be ahead of the curve.
We could patent it but thats just more money wasted that could be put into capacity.
If we can start with 60-80k that'll be a decent service to start with and allow us to double the capacity the next year with the profit if all goes well. I would imagine that once its launched we'd find it much easier to find additional investment but well have to start with a good service first.

I'm not sure who would partner with us, I know you can't help with that because the product is a secret

If you say it's what you say. A proper business plan is all that it would take to raise a million. You have to answer these questions first:

What are people currently using ?
Who are the competitors, existing and future ?
What is your unique selling point ?

I've seen every type of start up company, none have ever had a paid for product, that can be launched via word of mouth, with the only issue how to meet customer demand.

digiology

antoinolachtnai wrote: »

Well, this 'unit' that you're buying, it must have a supplier, and one of those suppliers would be the obvious partner.

When you say 'supplier' do you mean manufacturer or some middle man like a wholesaler?
No single manufacturer will cut it, I need a variety of equipment.

A year sounds like a long time to wait to launch - someone could have stolen a march on you by then. If it's really a big potential, you might need to get more money in order to allow you to be appropriately aggressive.

Thats why I'm not telling anyone, this could have been done 4 or 5 years ago but it hasn't which baffles me.
I can't see me getting more than 100k in my wildest dreams, if we can launch with something decent and credible thats unlike anything else out there then I would think that we should be able to attract additional investment before competitors emerge.

digiology

kenbrady wrote: »

If you say it's what you say. A proper business plan is all that it would take to raise a million.

I hope you're right. A million would probably be a bit much, I'll have to do more research but I cant see us serving more than 100 people an hour even with infinite capacity and loads of marketing. Its a new idea but the market is still a little niche.

I've seen every type of start up company, none have ever had a paid for product, that can be launched via word of mouth, with the only issue how to meet customer demand.

Put that way it does make me sound a little crazy. There'd be marketing involved, I really do feel that the necessary marketing budget would be quite small though.

antoinolachtnai

100 people per hour isn't that much - problem is that a lot of people will probably want to use this whatever-it-is at the same time.

I think you should think about what amount of use you could realistically get in Europe and the USA and use that as some sort of starting point for what size your business would ideally need to be. Not saying you start by developing and launching to hit that market, but that you have some sort of plan to get there, eventually.

digiology

antoinolachtnai wrote: »

100 people per hour isn't that much - problem is that a lot of people will probably want to use this whatever-it-is at the same time.

I think you should think about what amount of use you could realistically get in Europe and the USA and use that as some sort of starting point for what size your business would ideally need to be. Not saying you start by developing and launching to hit that market, but that you have some sort of plan to get there, eventually.

Perhaps that approach would probably be better but I would assume an investor would be more likely to make a small risk rather than a big one. Sure, if I can convince them but this is a new idea in a fairly niche market.
Thanks for your help, I'll have to keep this in mind as an option.

antoinolachtnai

Nope, that is not necessarily the case. It depends on the investor, but if they want to reduce the risk, by spending more money if necessary.

strange but tru

Just thaught I could help in some what with your question


when it comes to state bodies you would need to prove that there is a market for your product or service which you say is quiet nieche which is not what they want to hear I am afraid.

To be honest it is the same with most banks and at the moment , your main source would have to be private investors which again in the modern economic climate are turning down most buisness plans without concrete figures based on reliable sales figures calculated in a real time market which for a nieche buisness is almost impossible. Also you dont sound like you have much buisness expierence which is another negative but one that can be rectified by gettting a partner with the buisness skill required and maybe some cash ????

All of the above sounds complicated but it boils down to this, how do you know pepole want your service or product and if the answer is yes what is to stop a larger company with more money for advertising just wiping the floor with you????

I have had meetings with private investors and banks over the years and to be honest unless you have an iron clad buisness plan with every detail accounted for your not going to get a penny.

ON the point of knowing what you can recoupe if the buisness goes belly up is an absolute must, any investor of any kind wants to know what happens if things dont work out and what are you going to do to get them some return on there investment.

To be honest most meetings go down the road of what if your wrong ?what if you dont make sales ? what do you plan to do about it when your 40K in the hole and things arent going the way you planned.

This is worst case senario for most investors so thats what there worried about not the what if it takes off and we all make money.

Oh and a crazy figure like 9k a month in month four is sadly unrealistic even with major marketting behind you and i mean major advertising a web based service or product is lucky to have gotten 200 hits by month 3 and I mean spending 60k on advertising alone and thats from expierence. If your planning on word of mouth remember the proven fact that if someone get a good service or product they tell 3 friends who tell no one else if they get a bad service or product they tell 10 who in turn will tell at least 3 each .

pm if you think I might be able to help

kenbrady

strange but tru wrote: »

when it comes to state bodies you would need to prove that there is a market for your product or service which you say is quiet nieche which is not what they want to hear I am afraid.

Not true, niche has nothing to do with demand, in fact niche can be good as you can charge a premium.

Ferrari's are a niche product.

State bodies look at the overall business and it's potential to make money

digiology

strange but tru wrote: »

when it comes to state bodies you would need to prove that there is a market for your product or service which you say is quiet nieche which is not what they want to hear I am afraid.

I should probably say that when I mentioned it being niche I was more so trying to highlight the fact that its likely to be an unfamiliar market to business people. There are quite a few companies pulling in billions from it (I'm using the term market to refer to many related product not in competition with my own idea).
Investors are unlikely to be convinced of this unless they know the market which I can't see as likely in Ireland. Besides that, I suppose it comes down to numbers. How do I prove that there is a market for something that doesn't exist?
Are there websites that will help with this? I am aware of companies that my target market currently buy from, perhaps various annual reports might be a place to look.

strange but tru wrote: »

All of the above sounds complicated but it boils down to this, how do you know pepole want your service or product and if the answer is yes what is to stop a larger company with more money for advertising just wiping the floor with you????

I have had meetings with private investors and banks over the years and to be honest unless you have an iron clad buisness plan with every detail accounted for your not going to get a penny.

ON the point of knowing what you can recoupe if the buisness goes belly up is an absolute must, any investor of any kind wants to know what happens if things dont work out and what are you going to do to get them some return on there investment.

To be honest most meetings go down the road of what if your wrong ?what if you dont make sales ? what do you plan to do about it when your 40K in the hole and things arent going the way you planned.

This is worst case senario for most investors so thats what there worried about not the what if it takes off and we all make money.

I'm starting to realize that I'm going to have to aim a lot higher in order to get this off the ground. I figured if I could convince a bank to give me 60,000 I'd be sorted but I'm going to need a decent business plan and some solid market research.
My main question then is: where do I start and can you recommend any books

lion_bar

digiology wrote: »

I hope you're right. A million would probably be a bit much, I'll have to do more research but I cant see us serving more than 100 people an hour even with infinite capacity and loads of marketing. Its a new idea but the market is still a little niche.

Do i have these figures right? You're looking for 80,000 approx, to setup some service/product, that you'll be paid 1 euro per hour for with maybe 100 user every hour?

Does that mean you'll get revenue of 2,400 per day?

digiology

lion_bar wrote: »

Do i have these figures right? You're looking for 80,000 approx, to setup some service/product, that you'll be paid 1 euro per hour for with maybe 100 user every hour?

Does that mean you'll get revenue of 2,400 per day?

No, I was saying that on average 100 users concurrently is probably the maximum I'd get if I have infinite capacity. Although to be honest I picked this number out of nowhere so I need much more research.

Each unit costs between 1000 and 3000 euro and will serve one person at a time.
80,000 at lets say 2000 a unit (although it should be less on average) gives 40 units and thus 40 concurrent users at the most.
Not all units are going to be equally used so I could estimate that there may be about 25 users using the service per hour 24-7.
I'm obviously simplifying, there will be broadband, electricity and some limited marketing and support costs (I hope). I'll have the software done on my own time so that'll be taken case of.

Thats 600 per day at 1 euro an hour. Its likely I'd start out at 2 euro an hour and bring it down if necessary. 1 euro certainly seems like a nice sweet spot but given that I'd have limited capacity and this is an entirely new service I should be able to charge a little bit more.
Its all very scalable, every month I could add more and more units using the profits to expand it further.

I suppose what I need to be able to convince investors of is that I can get those 25 users an hour and that they will be willing to pay this amount.

SpinTech

Hi,

I have a colleague who is heavily involved in finding 'angel' investors for startup companies.

I'm new to this forum so is there a way you can contact me directly - I don't want to publish and names and contact details in the public forum?

digiology

SpinTech wrote: »

Hi,

I have a colleague who is heavily involved in finding 'angel' investors for startup companies.

I'm new to this forum so is there a way you can contact me directly - I don't want to publish and names and contact details in the public forum?

To be honest, I'm not ready for that yet. I don't think I'll be successful getting an investor on board until I have the software written and ready to go and also a solid business plan.
Before I spend months developing I do need to gauge if this will work specifically if I'll find investment afterwords. Its too early to disclose my idea to investors and I've heard that investors are reluctant to sign NDAs in general.
I could of course get investment for the development and hire some programmers but that would simply up the amount of investment needed even more.

I might PM you in a few months however, thanks.

SpinTech

Sounds sensibly cautious - best of luck anyway.

hinault

Have you really tried all of the banks, seeking a loan?
Have you approached all of the domestic banks for a loan?
Have you approached all of the foreign banks here for a loan?

The leasing equipment option would seem to be a good option as stated earlier?

Or how about seeking capital investor?

Have you consider approaching venture capital companies?
Usually they invested in companies which are up and running but some venture capital companies are prepared to invest in startups?
There are plenty of venture capital companies seeking to invest in viable ideas - in return for an equity stage bolted on to a fixed term investment
time period.

digiology

hinault wrote: »

Have you really tried all of the banks, seeking a loan?
Have you approached all of the domestic banks for a loan?
Have you approached all of the foreign banks here for a loan?

I haven't even tried one yet, most responses in the first page of this thread seemed to suggest I wouldn't get a loan without investment or my own money.

hinault wrote: »

The leasing equipment option would seem to be a good option as stated earlier?

I'm looking in to this, it seems to be quite unusual to lease this equipment, especially long term but there are companies that do it.

Or how about seeking capital investor?

Have you consider approaching venture capital companies?
Usually they invested in companies which are up and running but some venture capital companies are prepared to invest in startups?
There are plenty of venture capital companies seeking to invest in viable ideas - in return for an equity stage bolted on to a fixed term investment
time period.

Yup, I'll take whatever I can get. Right now I'm just figuring out what the likelihood is of me getting investment whether from a bank loan, investor or VC.

strandsman

Did you get your business setup digiology. What is it you do?

digiology wrote: »

I haven't even tried one yet, most responses in the first page of this thread seemed to suggest I wouldn't get a loan without investment or my own money.


I'm looking in to this, it seems to be quite unusual to lease this equipment, especially long term but there are companies that do it.



Yup, I'll take whatever I can get. Right now I'm just figuring out what the likelihood is of me getting investment whether from a bank loan, investor or VC.

chrisfitzp

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