Can anybody give some advice?

[Projecting IMAX 70mm]

Hello All,

I have this product that is weeks away from going public. It is a licensed product. And is Viper related, The sad thing is I can only reveal what it is to key people in my business or partners etc etc... I have the contract in my hands right now. But anyway.... I went down to the bank to get a business loan today. And they want my house for collateral. Which I have no problems with but was wondering if there is a little less painless way. The loan amount I am looking for is 25K. Estimating my profits that's only about 500 units I am going to have to sell. If there is anyway to get around putting my house up for collateral I am all ears. Thanks for any help/suggestions you might have.

Ben

 

[FranciscoR.]

There are small business loans the government gives out. Details I do not know but it's worth going to the library or something and checking it out. Collateral is equity. So unless you got something other then a house to put up for the 25k, you're kinda stuck on that one. I know you have heard it before, but business is a risk man. I am not saying in any way risk your house, or a car, or anything else. I am saying it always takes a leap of faith in my mind.

 

[carguy07]

Unsecured debt is all credit score driven. Places like MBNA and Capital One lend that kind of money all the time. Key is to not tell them what you are using it for. They hate to lend for venture capital, but a loan for an extra garage sounds about right. Expect rates anywhere from 6%-13% Having said that, a Home Equity Line is the cheapest money you can borrow. Rate will be around 4%, you get to write off the interest and minimum payments are usually interest only. $25,000 x 4% / 12 = $83.33 minimum payment. This gives you a lot of flexibility for getting your product to market while planning for very little cash flow early on. IMO.

 

[plumcrazy]

25K is NOT a lot of money. go and take out a personal loan at a higher rate.

 

[Projecting IMAX 70mm]

Hey Guys,

Thanks for your reply's. I definitely have a few more idea's to go on now. It's been 8 long months of work to get this far. So there is no way I am going to let it slip away. Once again...Thanks for your reply's

Ben