Funding your new Business

Jan. 25, 2010 - PRLog -- How to find alternative funding sources for your business?

By Mario Rotanelli

If you’re starting a new business and you have just sat down with your enormous SBA Packets, then you should read this article first. There are a few ways that you can fund your new business without going to a bank or selling your soul to the SBA.

Like many people 2008 was a really rough year for me and my business, as a result my credit barely escaped with out dropping into the 500’s. As the economy continued to tumble my regular customers had less and less money to spend in my stores. Finally we had to totally reinvent our brand and follow the herds to new pastures.

Being that my credit starting this venture was not as strong as when I started my first business this posed a few challenges when I started my search for additional start up capital. I knew before hand that I would not quality for traditional funding, so as a result I begin to search the web for alternative funding options. When you’re using the web to find information these days you are really taking a big chance because much of the integrity has been sucked out of online journalism due to the success of Google Affiliate Market programs.

The best advice I can give you is never pay anyone for an approval. In the commercial lending world there is term known as Due Diligence Fee’s. As a matter of fact the first funding site I landed on was a group of so-called brokers hustling desperate entrepreneurs out of due diligence fees. A due diligence scam requires that you to pay anywhere from $5,000 - $15,000 for a broker and his cronies to research the viability of your executive summery. How the scam works is they wait about two months after you have paid the money (via bank wire that is), to tell that your plan did not pass the feasibility study.

Now you’re out of $10,000 that you could have applied to your start up cost. They are able to get away with it because they provided you with a service and the scammers have a right to charge whatever price they want for the scam.

So if you’re looking for commercial funding for your business then please avoid a site called Mortgage grapevine.com. This site is loaded with a bunch of hustling brokers waiting to rip you off, consider yourself warned!

I have found two great sources that will help you find all of the funding you need for your start up business with out charging you a dime. I would like to note for the record that I am not an affiliate marketer with any of the sites that I am about to refer you to, nor do I receive any compensation for my endorsements.

Listed below are two sources that you can visit in order to find alternative funding sources that will consider your commercial funding request regardless of your credit history.

The Scotsman Guide is the absolute best place to start your search for funding for your business especially if you need fund for commercial real estate. Their website is loaded with nothing but reputable companies that have been granted the right to place ads on their site. The Scotsman Guide will also send you this beautiful magazine every month fill with tons of funding sources. The Scotsman Guide is divided into two categories of funding, Residential, and Commercial.

The next site that I boldly endorse is Business Finance. Com. Business finance is a great site if you would like to save yourself the time of searching Google all day. On this site you can answer a few simple questions about your venture and they will generate a list of potential lenders that have pre qualified your business plan based on the information you submitted. Just one quick note about their site, this site is FICO score driven.  

It took me many hours of searching and eliminating before I arrived at the companies I have just listed. Please visit the bottom of the article for direct links to their site. In the world of commercial credit your FICO score is king, so if your score is below 640 then your interest rate will be extremely high if you’re offered a loan. The good news is many of the lenders in the Scotsman Guide will only peep at your credit while placing their entire approval on the strength of your plan.

I also would also like for you to consider Hard Money Lenders if you’re FICO score is really low. Many hard money lenders based their approvals on the amount of equity in your venture. Many HM lenders don’t even consider your personal credit.

If you would like more information on how to find alternative funding sources then please go to the contact us page of my website and I will be more then happy to send you a list of hard money lenders for free.

Max Personal Public Relations – http://www.ironcladrep.com

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Tyronne Jacques

Mario Rotanelli