Home – New Forums Starting your journey Financing a Start Up – could use some recommendations!

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  • #966636
    mdheywood
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    Hi people of flying solo!

    My name’s Mark and I have a question I’m hoping some experienced people here might be able to help me with… but first a quick back story!
    I’ve recently been studying the NEIS program, and have come to the very end of it.. (to actually complete the course, you need to acquire funding!)

    I have spent the last 6 months perfecting a business plan, worked on cash flow statements and profit/loss prediction statements for the next two years..

    I really want to start my business (in visual media, in hobart) in Feb, and am searching for the best bank/institution to provide the right loan for me…
    I’d be what you’d call a ‘young entrepreneur’ and, unfortunately, have no property (commercial or private) that could be used as security…
    I’d need to apply for a $55,000 (unsecured) loan to start the business up right… (I could do it for less, but don’t want to cut corners or be cheap when it comes to anything, as I believe if done right this will be unstoppable…)

    I’ve met with two banks already; Westpac offered me $30,000 unsecured and unfortunately I can’t do it for that amount and have it succeed, and ANZ offered me $10,000 unsecured… Before I go hunting around a million places to get the same answers, does anyone know of any lenders who have low interest start up loans (for people like me who have completed NEIS), or a good lender that will look at my business plan and prediction statements and give me a fair chance?

    Thanks in advance, and sorry to make it such a massive post!

    -Mark :)

    #1019834
    Karen Wardle
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    • Total posts: 363
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    Hi Mark

    I can provide you with a list of government grants/schemes that you maybe eligible for, but can’t offer anything different as far as what you have already learned from the banks.

    I will email you privately.

    Sorry I can’t be more helpful. Please let us know how you get on.

    Good luck

    Karen
    http://www.you-can-start-business.com

    #1019835
    mdheywood
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    • Total posts: 2
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    Thanks, Karen!

    I look forward to the email :)

    -Mark

    #1019836
    Eca IT business systems
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    we also have just been thru the neis plan and were advised:
    cut down on start up costs
    call your neis trainer with any concerns thru the planning/start up phase! (after all they assess your plans)

    #1019837
    Army of One
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    Yeah – I am surprised even Westpac offered $30k unsecured! Good work!

    To make up the difference have you investigated obtaining private finance? I understand you maybe do not want to go down that path as it would probably involve having the investor(s) looking over your shoulder.

    But if you have put this much work in, and can show the potential in terms of income to be generated, maybe you could induce someone else to invest?

    Also, what specifically is the financing for? Is it more purchase of equipment / software? Maybe there are alternative ways of funding these purchases?

    I agree with the point that you should NOT compromise you offer (and compromise your success).

    Sorry – I don’t know any low interest (relatively) lenders for this kinda of stuff. I will keep my eyes open though.

    Good luck
    Kris

    #1019838
    The Incubator
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    I’m about to start NEIS and would love to know about any grants that I may apply for. Have had a look at a few but not sure which is right for me.

    #1019839
    seb
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    Rather than compromising, have a look at if everything needs to be done at the start? You could try starting with the biggest chunk that can be done for $30k from westpac and add new features down the road when you have some capital coming in. Though, of course, this might not be applicable to your industry.

    #1019840
    King
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    surprised you can get any loan, esp if you plan on doing it full-time. Be interested to learn how well you do in the end.

    #1019841
    MikeNash
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    I’m very suprised that a bank would give an unsecured business loan – it’s never been my experience with them – they always seemed to want property as security.

    I agree with the other advice here – if you can pare back your plans to be within the budget available through Westpac, go for it. Aside from that, there are family and friends too.

    One piece of advice – having been through the process of successfully raising venture funding/investment – this can be a huge, huge draw on your available time. If you can do it without, I’d go for it.

    Mike

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