# Grants/Loans



## Forward (Jan 30, 2011)

As we come along in our business we're are slowly running out of money. We at the point of printing and can't seem to find the extra cash to get it off the ground. Has anyone gotten grants or loans? If so how did you go about doing it. Life would be grand if printers had terms


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## rawbhaze (Jan 29, 2011)

First and foremost, schedule an appointment with your local Small Business Center if you haven't already done so. They will be able to help you with loan and financing information but more importantly figure out why you are lacking in funds when you haven't even made it to production yet. That's a red flag- one that no lending agency is going to want to see. (Everyone say it with me now...) "Especially in today's economy."

If possible, sell before you print to avoid inventory.

Depending on the size of loan needed it may benefit you to look into micro-loans.

A generalization is that Credit Unions are easier for Small Business to work with than their big bank counterparts. I have found that to be true in past endeavors.


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## Forward (Jan 30, 2011)

We have been using our own money to finance everything so far. As we get into the most expensive part our personal funds just don't quite cover it. It's possible that we could just cut the quantity down and still pull it off but it sure would be nice to have a little back-up capital for unexpected costs....and a professional website.


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## rawbhaze (Jan 29, 2011)

I understand.

My personal opinion is that you have to spend money to make money but it only makes sense to do so wen you have the money to spend. I would not go into debt unless I already had guranteed sales lined up and deposits for those orders put down. If you are not on a deadline, would it perhaps be a better idea to wait and reload the business cash flow at a later time?

I don't know your business type. Is it possible to only print sample garments at this time, put together your catalog and look book, send them out, take orders and then purchase production with the deposit money?

Call the Small Business Center in the morning. They'll be able to help guide you in just about every direction.


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## Forward (Jan 30, 2011)

I agree, and I think that's the route we're going to take for now. Thanks for the advice! I really appreciate it!!!


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## JAF (Oct 12, 2008)

I started my business with cash from a small savings and a 5 yr lease on my embroidery equipment. I paid off my lease and bought a 4 head. Paid off my lease and bought screen printing equipment. In between big lease payments I bought several other pieces of equipment. 
You need to plan for purchases. Grants & low interest loans are nice (if you can get them) but don't plan on them to keep your business afloat. I just don't want you to be disapointed if you can't find a grant.
Write your business plan without expection of grants.


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## mlink (Mar 4, 2011)

I've looked into trying to apply for grants and I have yet to find them. It looks like, they don't have grants for small businesses like ours, unless its a non-profit, education, etc... Check out SBA. There's a ton of information on there. Only thing is that, SBA will refer you to a website that can possibly give you a grant, but that site will refer you back to SBA. Who knows, maybe you'll be able to research it more thoroughly cause theres a ton to read. But if you find anything, make sure you post it back on the site. =) Good Luck!


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## Creed (Nov 19, 2010)

One you may look into is: http://www.accionusa.org/ 
I have never used them, tho have considered, so I have researched them. They seem easy to work with and are generous.

I would, as many mentioned, look into the SBA or the SBDC, which is SBA connected. They are located on every major college campus. All help is free with some small fee classes you could attend.

Also, do not overlook SCORE

www.sbdc.org
www.score.org


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## jiarby (Feb 8, 2007)

I am confused.... have you been in business a while or is this a new start up??

If you have been in biz a while and the money is running out then I would advise AGAINST borrowing money... because you would be just delaying the inevitable. You need to examine WHY you are running out of money and fix that first. If you are already losing money how will you find the funds to repay the loan? 

If you are a new startup then I would be cautious about borrowing money. Have some pros examine your business plan from top to bottom. If you do decide to borrow, make sure you do it through your business and avoid personal guarantees... If your business fails you will be risking a personal bankruptcy that could affect you for years to come. 

These are the best solutions to a cash flow problem:
1. Raise your prices! If your money is bleeding off then there is a flaw in your business plan. 
2. Sell more. Focus on marketing & sales before buying gear. 
3. Sell some personal asset (second car, TV, coion collection) before going into debt. 
4. Reduce expenses. Examine all your business processes and stop spendng money on things that do not increase profit.


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