Investors - I Am Looking For Advice

[wethouse]

I own a small business in Fort Worth. I have been running this business for around 10 or so years and doing well.

We survived the recession and are coming out of it stronger than expected.

I basically buy and sell equipment (both new and used) and resell this equipment world wide.

Our financials look good. Besides a few private and public loans we don't owe much money. Credit score, etc is all good.

I have quite a few machines in inventory. We always have had a large selection.

Im looking for a way to use this equipment in inventory as collateral on loans. Perhaps a loan of 50% of the machines values and then repaying that back plus interest when the equipment sells. Generally equipment sells within 30 - 90 days.

I am trying to raise funds to expand the business. Our bank doesn't want to give us a loan until they see 3 months of working capital cash in our account for at least 3 months (about $100,000) which is kind of difficult because in that time, i could probably make a lot more money with the $100,000 then i could with the loan if i waited the 3 months. Ive talked with other banks and they basically told me the same thing. I have about $200,000 in inventory (our costs) so, holding $100,000 for 3 months would probably cripple my business.

My idea, like i said, is too look for investors willing to give me about 50% the retail value of the equipment. Once we sell the equipment, i would pay back the loans.

I do have about 6 - 12 family, friends, and acquaintances that have been working with me over the years but, they are limited to only small investment. I'm not sure where else to find investors. Plus, everyone hates borrowing from friends and family.

Generally when i borrow from them, i fill out a promissory agreement and we both go to the bank and have it notarized. I then deposit the investors check and give them original copies of the contract (which has machine serial number, etc), a copy of deposited check and original bank receipt. if placing a lien on the equipment is cheap and quick then i would be willing to do that too....

[ZenReputation]

it will be better if you can directly contact to persons that utilize machines...or retails holder..just search out new people in this..VIA forum sites..new websites..new small brands..hope they may may be fresher in this field..and hoping for person like you

[wethouse]

Originally Posted by ZenReputation

it will be better if you can directly contact to persons that utilize machines...or retails holder..just search out new people in this..VIA forum sites..new websites..new small brands..hope they may may be fresher in this field..and hoping for person like you

This is a very nitch industry. I don't think it would be too easy to get people in the industry to make investments and those people, i would rather sell them something then hit them up for a loan. Im kind of looking for local investors but i really don't know where to find them. Like i said, i do have freinds and family investors but they are more small investments. Im looking for larger investors that i am not so personal with.

[ZenReputation]

if so..then start local Classifieds over Internet as location wise

[jasminelane]

Originally Posted by wethouse

This is a very nitch industry. I don't think it would be too easy to get people in the industry to make investments and those people, i would rather sell them something then hit them up for a loan. Im kind of looking for local investors but i really don't know where to find them. Like i said, i do have freinds and family investors but they are more small investments. Im looking for larger investors that i am not so personal with.

Really its not a easy task to find people and make industries investments.You should find Business adviser and taking help from them.

[AlexB1]

Hi Wethouse,

We are in the process of setting up a consumer-to-business lending platform, where you can find people to lend to you on a short-term basis (9 months) and the loan is secured on your assets (but leaves you the flexibility to sell the equipment and buy new equipment. These lenders are just individuals looking to do something with their money other than leave it in the bank earning <1% interest, especially if it is better for small business. Happy to chat about this if you think it might be helpful - alex