Coffee with Glen, CEO of Brazzlebox
As the CEO of Brazzlebox the question I get the most is “how do I get money or a loan to start my business?” For many of my early businesses I was always hopeful that I could obtain a small business loan or business line of credit through a bank. The rejections were numerous and for various reasons like: not enough industry experience or Business Plan revenue expectations did not seem possible. What it will always come down to is your personal credit score and if you have any collateral. Even if you have industry experience or even if you have the greatest business plan the internal criteria for these banks will demand a high credit score and sometimes some sort of collateral that secures the entire loan. You will always be urged to try by the bank as they have internal quotas for each bank location to have a certain number of applications each month, approved or not. Be cautious to ask for or be coaxed into asking for more than you need as a denial at that loan amount will not allow you to ask if you can be approved at a lower amount.
The best direction I have ever seen come out of the SBA is actually a short video – this is the link: http://www.sba.gov/learning/video/sba-loans-explained
Next: Securing money from friends and family. This was the way I funded all of my businesses. If you believe in your model and you are determined enough to do whatever it takes to make your business successful then, if they are financially able, friends and family could be your best resource for start-up funds. Once you start showing good cash flow then it will be time to consider a business line of credit. Try your local, community banks first as they like to display their community support.
If you have any specific questions, leave a comment. I can do the research for you and ask our vast network of local Bank Vice Presidents, Wall Street Executives and local Financial Consultants.
At Brazzlebox – we are here to help and you’re among family.
Hope you enjoyed our coffee today!