Home – New Forums Starting your journey Acquring unsecured finance for start-up

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  • #967084
    Guy. E
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    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

    #1023295
    lukew
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    Have you tried the following
    NAB Microenterprise loan.
    http://www.nab.com.au/wps/wcm/connect/nab/nab/home/About_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.

    #1023296
    Guy. E
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    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!

    #1023297
    Steven Hudson
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    Try some Venture capital companies the one below is an aussie company never used them but have I seen them advertise.

    http://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

    #1023298
    Guy. E
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    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

    #1023299
    DJ_m
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    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

    #1023300
    Guy. E
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    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

    #1023301
    DJ_m
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    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.

    #1023302
    Guy. E
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    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

    #1023303
    DJ_m
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    • Total posts: 147
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    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

    #1023304
    Guy. E
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    • Total posts: 45
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    DJ_m,

    Sorry if this sounds rude mate – but again, if I had a ‘cure of cancer’, I wouldn’t be posting on here ;)

    At the moment, I am doing commision based work that earns me enough for the time being – but I need to jump on the boat quick to get in early enough before other providers do.

    $20k in telstra shares, must be doing well. If you’re wanting to know a little more on what we’re trying to do – send me a PM :)

    Cheers,
    Guy

    #1023305
    DJ_m
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    • Total posts: 147
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    GuyE, post: 27716 wrote:
    DJ_m,

    Sorry if this sounds rude mate – but again, if I had a ‘cure of cancer’, I wouldn’t be posting on here ;)

    At the moment, I am doing commision based work that earns me enough for the time being – but I need to jump on the boat quick to get in early enough before other providers do.

    $20k in telstra shares, must be doing well. If you’re wanting to know a little more on what we’re trying to do – send me a PM :)

    Cheers,
    Guy

    Sorry, I was being overly sarcastic. I’m just not sure about the recommendations to talk to banks and VCs are going to help you much.

    A bank won’t lend you without collateral and I don’t know a VC firm that looks at anything much under $100k.

    For $20k you really do need to earn it or look to friends and family if the former is not possible. If you had a unique invention or something then you could offer up a private share issue in your business.

    Good luck.

    DJ_m

    #1023306
    PrimerGroup
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    For a start up you can ask only about 20K to maximum 50K without security. Funding is done in rounds, your 1st round has to be 20K, if you want 250K that has to be the 2nd round after you are bringing in sales and making profit. You cannot ask for more than 100K without track record. Banks want real estate security or commercial security, so basically it is buildings they want!

    #1023307
    Guy. E
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    Hi guys,

    After speaking with many banks – you’re all right.

    However, because the business has only been in operation since November of ’09 and has no ‘track record’ of sales yet (as i’ve been busy trying to establish everything else), banks are looking at me and shaking their heads and pointing down the road.

    At the moment, $250k is the total figure I will be needing, so I would only be looking at between $20k-$30k to get the ball rolling to start making the sales to show what the product is capable of bringing in.

    Cheers,
    Guy

    #1023308
    PrimerGroup
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    Now you are on the right path.

    I would be happy to have a look at your business but our rounds for this year don’t start until August. We take in businesses every year during these rounds.

    Also make sure you have a good business plan along with all the documents needed.

    These are the documents required:

    Business Overview
    ▪ SWOT Analysis
    ▪ Marketing Plan
    o Market Analysis
    o Competitors Analysis.
    o Pricing Policy.
    o Promotions Strategy.
    ▪ Sales Forecast.
    ▪ Establishment Costs Forecast.
    ▪ Financial Analysis – cash flow and income projection

    Any bank or financial group would request these

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