Business Loans

Within the last couple of months, I’ve put into practice some concepts presented in a little ebook I came across while I was surfing the net one day. From my own success with these ideas a strong, proven understanding of how to get loans in spite of our unique situations was clearly elaborated. Why do I say proven? I’ve used a number of these ideas personally and my credit is GARBAGE, now. (I’ll tell you why in a bit.) So if I can take advantage of these methods, ANYONE CAN!

If you have good credit but your debt to loan ratio is too high for regular financing, or if you’re within budget but your credit score is lousy…if you have limited or no credit history established, or even if you’ve filed for bankruptcy as I had to just over 2 1/2 years ago, it’s OK; you’ll get a number of successful end-arounds here that you can use to successfully get the cash you’re after! Truly, the techniques are so simple that nearly anyone can borrow thousands of dollars. Happily, this has proven true for me.

Right off the bat I saw that I’d be able to use a two things that were mentioned, and I used these right away with great success and in a short time.

The first idea I latched onto was that of borrowing against something I already own – in this case, my older RV. I owned this outright and I’d already considered selling it to raise funds for a little startup business I’m involved with. Man, I just didn’t want to take that huge bath I was going to have to take if I chose to sell it. Besides, I love the danged thing – I didn’t want to sell it at all…I wanted to continue to use it for vacations plus reasonably priced comfortable and convenient travel on weekends. At the time it appraised for around $3,000.00 per NADA.com’s valuation. And what I could actually expect to move it for on the street and quickly was more like $1,500.00. It really doesn’t matter what the item is as long as it has sufficient value,.

For the writer, a 9 year old car that was worth around $2500.00 on the street brought $3,000.00 in the form of a secured loan. Happily, I was able to borrow $3900.00 for mine. I had to talk to a number of lenders but I finally got the figure I wanted. That $3900.00 was a real shot in the arm for me since I needed the money for a small business startup and this has gotten it off the ground. Better still, I continue to use it even now.

Idea number two was that of making my loan request known to a network of people. I broke my one large request down into a lot of small amounts. If I asked one person for $10,000, it’s quite likely that person would say no immediately. By networking (joining an organization that whose sole purpose is to provide business/socialization opportunities and to further each member’s interests.) There are ways of finding people willing to loan the money I need quickly. I decided to look for amounts of $500.00 or so. These were reasonable, manageable, bite-sized chunks as I wrote about earlier.

The people I looked for – talked to are doing well – they’re successful. Some helped simply because they’re altruistic and generous and it makes them happy to help out like this. They have a heart for helping others. You sometimes have to look carefully for these people and perhaps some friends or associates in common will help as well.

Sometimes further on down the road in the friendship or association, once these folks are satisfied that you are not a slow-pay or a no-pay, they will introduce you to others who they’re certain can help too. Some people will help because they are successful entrepreneurs and they remember the difference a little more cash would have made to them way back when. Then there are those who want a reasonable return on their money. Like anything else, people’s reasons for doing anything will vary.

I did avail myself of my friends’and family’s help to begin with but for the last two loans I’ve managed, this has not been the case.

Of course the people I’ve had help me here weren’t concerned with my FICO for this sized loan. My credit is terrible for reasons detailed below and I simply chose to tell them the truth about this when asked. I’m careful not to volunteer any information, I only answer the questions I’m asked. For one thing, I prefer not to volunteer any more information than is needed and for another, the lender might not want to hear answers to anything other than what they’ve asked. Some years ago, I was badly injured in a motorcycle accident. My wife at the time had just lost her job due to the company’s closing. We had no health insurance because we could not afford the insurance COBRA conversion premiums now that we were down to the wire.

Having been hospitalized for miscellaneous infections, sepsis, abscesses, bone-infections that set in after the coring of my right tibia I ran up over a half a million dollars in medical and hospital bills. I saw no way to ever be able to repay these debts under the circumstances so we had to declare bankruptcy in October of 2006. This is another of the great things about using the multiple ‘person to person’ loan format. These folks were willing to lend me the small amounts I needed on the strength of the reason for the loan, and my ability and guarantee to repay.

Although these loans probably happened quicker and more easily for me because of family, friends and people I knew when I joined these organizations I don’t think familiarity is absolutely necessary, it simply would have required more time and effort for me had the people I know not been available. I’m sure of this because the people I’m dealing with now don’t know me much better than as an aquaintance. So don’t talk yourself out of this avenue because it can be scary. Although that might be true mostly what it’ll most likely come down to is just the need for more thought and effort.

What I’ve done is simply to move within these circles introducing myself to others and letting my need be known with as much tact as I can. I am not by nature one who easily does that…but it’s what’s needed to get what I want so I do it. A cool fringe benefit is that I’ve made some nice new friends now too.

Beyond this $3900.00 I mentioned above for the RV, I’ve calculated that I need another $10k. I have 5 loans, 4 at $500.00 and one at $1,000.00 so I need $7,000.00 more as it stands right now. If I ask for and receive $500.00 plus from 14 more of these folks, I’ll have the $10,000.00. Currently, I’m at $3,000.00.

One really great thing is that even though I don’t have the entire $10,000.00, the $3,000.00 I have received coupled with the $3,900.00 from the RV loan have allowed me to launch the business with some breathing room; I now have time to seek out the remaining $7,000.00. I don’t need it all at once. Because I’m a writer, I can author whatever needs to be written usually, the ezine articles and this is what I’m mostly doing – what I’m wrapped up in. But I’m slow in the website design area because I lack knowledge and I just don’t have the time to educate myself right now. So I farm that out to someone who knows what they’re doing, along with some other things and therein lies most all the cost. I can hire my contractor and add and setup domains/websites as they’re needed. Beyond that, if what I have working begins further income production, I might not even need the entire sum. Better news still!

You know, it’s not even necessary for me to tell each potential lender I speak to that I’m trying to borrow a total of $10k…it might be that I have to provide a reason as to why I need their $500 piece of things but each one only needs to know why and that I’m borrowing $500 or more from THEM! As long as I just pay them back as agreed, even if they find out the entire amount (and two have, by talking) they don’t seem to mind. Again…this is adhering to my policy of not disclosing more than I feel I need to tell anyone.

There is a seven day envelope for obtaining many of the loans, but this is not always so. When an idea will likely exceed this envelope, we’re clued-in a bit as to what kind of a time-frame to look for.

There are networks and organizations big and small that by joining, we can contact and network with people who could help us. Giving it some thought every now and again, I come up with more ideas myself and so will you, I’m sure. Outfits like my local chamber of commerce and http://www.prosper.com or any other networking pursuits I can think of and have time for are what I look into. This involves establishing relationships online or face to face with my ‘person to person’ lenders and that’s taken time. If I was in a hurry, I’d have to consider other ways.

OK – here’s a quicker method that was mentioned…I don’t have one of these so it doesn’t apply to me but it might work for you. If you have a 401k plan with sufficient balance, you can borrow up to 50% of it’s cash value. You’ll most likely be funded within the 7 day time frame and it’s simply a no-brainer if you really need money. You’re borrowing from yourself.

Still another way, is that if you’re a business owner, you can usually obtain the cash value of your business in the form of a loan. This can happen quickly too. Asking some of the larger banks about their lending policy regarding businesses will give you knowledge as to what’s needed for them to lend money to you. If you are rejected by an institution, talk to them about what you might have done a better job at…where you were weak so that you can better prepare yourself when you approach the next big lender. Once you’re refined things down to a gnat’s bum, you should finally connect with that one that’ll do what you want.

There’s so much more thinking that’s been useful to me and I haven’t got room here to tell you everything. It’s why this article is roughly a couple of pages and the work contains thirty-eight.

So if you need a loan and so far, lack of ideas or lack of knowledge have been keeping you and the money you need from connecting, you can grab a lot of the information you want here and that’ll help turn things around for you. As I said earlier, I got educated from it.

A couple of these ideas put me on the fast-track to making a go of my new business because the funds are available to me, though of course there’s been a fair amount of work involved in obtaining them. There’s very little in our world that comes with no effort. That which does usually isn’t worth much. To coin a phrase, “That which we obtain too easily, we esteem too lightly.”

Author: Todd Fraser
Article Source: EzineArticles.com
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