# Getting financial aid for my startup



## mustangFWL (Feb 27, 2012)

I am starting my own screen printing business, and like all start ups, I need to get some cash for the equipment. I have good credit, but its new credit.

I am going to be mainly a contract (I believe thats that its called) printer, I am going to be doing 80-90% of the printing for the company I currently work for, and we do over 100K a year in printing alone. So I am looking at about 80-90K my first year in "sales". 

*My question for you all that have been through this process before is does letting the finance company know that I am a contract printer, and already have a large contract set up with an established company help me in getting a lower intrest rate and getting the money I need? And possibly would it hurt me in any way to mention that to the bankers?* 

My thought is that if I get a letter from the owner, stating that I will be printing 90% of their jobs, and with a projected outlook of the 80K, getting the start up money (about 12K), would ease their minds and not require all of the co signer and other details they are requiring me at the moment.

Id love to hear from some of you that could give me some information on this.

Thanks


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## royster13 (Aug 14, 2007)

How do your numbers look?......Can you make enough on 80,000 in sales to cover your loan payments, pay your overhead and make a living?....How can you tell the bank that the sales are guaranteed to continue?....Are you planning on doing contract printing on manual equipment?..What equity do you have to put in as a down payment?....


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## mustangFWL (Feb 27, 2012)

Well ill make about 30-40k profit on the 80K, thats my projected at least, (no rent, no utilities, just ink, screens, lease payment, and other office items), The business I am going to be printing for is my parents business, growing about 70-90% a year for the past 5 years, (above a million in sales a year), yes, I will be doing it on a manual press, and I have the 20% that the banker said they require, but the only other real "property" I own is my car, work 20K


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## royster13 (Aug 14, 2007)

If it is your parent's business and they are doing that much sales, I suspect the banker will ask why they are not financing your venture.....I also think the banker will have a problem with no previous sales for your company...


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## sben763 (May 17, 2009)

New start up usally pay extra percent or 2 and yes you will need proof of sales to come. Is your car paid for. You could use it as collateral. Problem with getting a loan to pay for equipment is you don't have equipment but if you get a purchase agreement then you can probably use as collateral. If you can prove 80% secured loan a credit score of 650 or higher no collections and no late payments you should be good, but this also depends on bank you may look into private investors if the banks shoot you down.


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## mustangFWL (Feb 27, 2012)

sben763 said:


> New start up usally pay extra percent or 2 and yes you will need proof of sales to come. Is your car paid for. You could use it as collateral. Problem with getting a loan to pay for equipment is you don't have equipment but if you get a purchase agreement then you can probably use as collateral. If you can prove 80% secured loan a credit score of 650 or higher no collections and no late payments you should be good, but this also depends on bank you may look into private investors if the banks shoot you down.


Well the first person i went was trying to charge me 30% intrest.. and no my cars not paid for.. so I guess I can use that... so I guess I will have to find a co-signer, and my credit is above 650, and i have no collections and no late payments, so hopefully with the credit score, co-signer, and purchase agreement, hopefully I can get a lower percent.


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## sben763 (May 17, 2009)

30% is way too high for a secured loan. Thats almost lease rates. There are a few web sites with private investors that are around 15-20% I think. I looked into myself when I started 5 years ago but had a heart attack the year before so I had to start a lot smaller and work up to my current equipment. Good luck.


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## sben763 (May 17, 2009)

I forgot to add have a business plan ready. You will also need a projected profit and loss statement included At least that's all the stuff they wanted from me I believe it was 12% if I didn't have some of the medical stuff on report otherwise it was 28.99.


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