Hi guys,
Our business needs to take out a small business loan (10k USD) to fulfill around 2 dozen orders. Basically, the customers are on a 2 week waiting list with money down.
The problem is that we don't have enough cash in our bank at the moment to buy the new inventory.
Our business is growing too fast to keep up with demand, so our current cash is invested in inventory yielding higher margins (35%) than the products on the waiting list (20%). We are in business since July 2012, but only saw real growth since February of this year.
How do we go about taking out a loan even if it's just a small one?
We contacted our bank and basically opted for a cash flow solution that allows us to go negative on our checking account at 10% interest/year (calculated on the negative amount x days)
We are asked to supply year-end numbers, but honestly they are 5x weaker than the current quarter's numbers.
Any suggestions?
PS There are individual money lending companies lending out small amounts at half the cost (5.7%) for "personal" loans. Think of slow laners paying for their wedding. They have the reputation of being easily obtainable credits that can even be applied for online. Would you recommend this?
PPS: English is not my native language. I'm based in Europe so we might not have every solution that's available in the US.
Our business needs to take out a small business loan (10k USD) to fulfill around 2 dozen orders. Basically, the customers are on a 2 week waiting list with money down.
The problem is that we don't have enough cash in our bank at the moment to buy the new inventory.
Our business is growing too fast to keep up with demand, so our current cash is invested in inventory yielding higher margins (35%) than the products on the waiting list (20%). We are in business since July 2012, but only saw real growth since February of this year.
How do we go about taking out a loan even if it's just a small one?
We contacted our bank and basically opted for a cash flow solution that allows us to go negative on our checking account at 10% interest/year (calculated on the negative amount x days)
We are asked to supply year-end numbers, but honestly they are 5x weaker than the current quarter's numbers.
Any suggestions?
PS There are individual money lending companies lending out small amounts at half the cost (5.7%) for "personal" loans. Think of slow laners paying for their wedding. They have the reputation of being easily obtainable credits that can even be applied for online. Would you recommend this?
PPS: English is not my native language. I'm based in Europe so we might not have every solution that's available in the US.
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