Acquring unsecured finance for start-up

[GuyE]

Hello,

At the moment I'm seeking unsecured finance for up to $20k to get the ball rolling with my new business.

I'm not having much luck with the banks - and because I am so young and don't have any security, it's getting quite hard and at the point (after 6 months) of nearly giving up...

Has anyone got any ideas or suggestions?

Cheers,
Guy

[lukew]

Have you tried the following
NAB Microenterprise loan.
http://www.nab.com.au/wps/wcm/connec...bout_Us/4/3/2/

I'm going to be applying for it through NEIS, but there are other avenues to be eligable for it.

Luke.

[GuyE]

I've left messages with ENYA on several occasions via phone and they've yet to return one back to me.

At the moment, i'm not having luck with banks - they haven't even offered me a personal loan due to the fact that I am full-time self employed and haven't been operating for 3-6 months...

Any other suggestions would be muchly appreciated!

[Steven Hudson]

Try some Venture capital companies the one below is an aussie company never used them but have I seen them advertise.

www.businessangels.com.au/

another avenue advertise your self in your capital city paper in Melb the Age on Saturday but talk to your accountant and see if they will talk the calls

….and again another avenue your accountant may have some cashed up clients seeking a good opportunity to invest in.

But understand you will need to give away some share holding.

Next Friends and Family

[GuyE]

Thanks Steve - however, i've explored those paths in the past and found them to lead me down a path that leads no where.

In regards to speaking to my accountant, i'll see if it's possible to chat 'off the books' to him to see if he has any cashed up clients looking for a healthy investment.

In terms of friends and family - I would prefer to have a debt with the bank or someone else in case things go sour. One thing I have seen with a lot of people is that if their investment goes bad, so do family and friends.

Cheers
Guy

[DJ_m]

Mmmm. I couldn't help but respond to this. I hope I don't come across as rude but..

$20k is about 9 months part-time at McDonalds.

You are happy to borrow from strangers but not family in case things go 'sour'?

Surely $20k is not that hard to earn if you really believed in what you wanted to achieve?

I would have thought you could earn that easily in the six months you have been trying to raise it?

I really think people see 'borrowing' as a too easy solution. Trust me, you will spend your $20k far more wisely if it has come from the sweat off your own back.

This is the best advice you will receive here tonight.

Regards,

DJ_m

[GuyE]

DJ_m,

I absolutely agree with what you're saying. However, the $20k in question is only for specific need within the business.

In total, we're trying to acquire close to $250k - the reason I am trying to find a bank or lender to get the $20k from is because I think I may be short an investor and I might have to step up my game and stick a bit more in personally then expected.

Thanks,
Guy

[DJ_m]

I'm not sure this makes sense.

Who would lend $20k in a total pool of $250k unsecured? I have worked for a couple of Venture Capitalists... they would spend $20k on lunch but not on a business investment...

Just shove in the $20k....? If you have raised $250k why would you be asking advice on $20k...

Give us a more of the story.

Intrigued.

[GuyE]

DJ_m,

We don't have $250k pooled as of yet - if I did, I wouldn't be posting on here!

We're seeking $20k for start-up costs - basically to get the ball rolling. I think I might of misworded my last post.

Basically, we're seeking business angels/investors to pool up $250k. At the moment, we're not having much luck. So, after speaking to my accountant, he gave me the advice if I had $20k to get the ball rolling in terms of network development and the purchasing of equipment - I could keep trotting towards my goal.

Once our network has been built (all redundant PoP's in place), we can then have a core to start working off. At the moment, we have nothing but our business name, intellectual property and minor equipment.

Does this make a little bit more sense?

Thanks,
Guy

[DJ_m]

Hi Guy,

Yes, it makes much more sense. You are trying to attract $20k of investment in order that you can then attract more investment...?

Alas, this brings me back to my original point. If you go and earn $20k and pony up then you will more likely attract some investment.

I'm of course assuming you ave not managed to split the atom or have a cure for cancer. If so I have over $20k in Telstra shares that could do much better elsewhere. Let me know.

Regards,

DJ_m