How I Got $300,000 for My Small Business in 3 Days
By Mark S. Have you ever dreamed of securing a substantial amount of funding for your small business in just one week or less? Well, that dream became a reality for me when I was able to secure $300,000 in funding within 3 days. In this blog post, I will share with you my journey to get the best funding for my business, so grab a cup of coffee and get ready to learn how you can do the same for your own small business!
Owning a small business can be an exciting and challenging endeavor. You pour all of your heart and soul into your business to make it successful, but sometimes you need a little extra help to take your business to the next level. So you know it’s time to start looking for additional money you need to grow. Whether you are looking to buy the equipment/inventory, hire more people, buy your commercial property, or invest in new marketing campaigns, securing funding is one of the biggest struggles faced by small business owners like you and me.
One of the primary reasons why securing funding is so difficult for small businesses is because most traditional lenders view us as high-risk investments due to various factors such as lack of credit history, limited collateral, or not understanding the cash flow of our business. This perception makes it hard for small business owners to obtain loans from banks or other financial institutions.
Another challenge faced by small businesses when it comes to funding is competition from larger corporations. Big companies have more resources and established relationships with investors that make it easier for them to secure funding. This puts smaller businesses at a disadvantage when seeking financial support.
Furthermore, many government programs designed to assist small businesses are processed through traditional banks that often have strict eligibility criteria and lengthy application processes. This can be overwhelming for busy entrepreneurs who may not have the time or resources to navigate through these programs successfully.
Here’s my small business financing story…
I had an opportunity to purchase inventory at a 25% discount, but I lacked the working capital to take advantage of this opportunity. I knew that if I didn’t find additional funding to pursue this inventory, I would not have the increase in revenue I needed to sustain my growth and my larger competitors could price me out of future business.
I began my search for financing at my local branch of my bank. I had been a client of this bank for the 18 months I had been in business and my gross revenue was an average of $50,000 per month, so I thought I would easily qualify for a loan. When I sat with my banker, he informed me that I could take a Home Equity Line of Credit (HELOC) to acquire the necessary funds. I believe in my company, but I could not risk my family’s home; my wife would not be pleased, to say the least.
My next step was to seek out additional sources for funding by going to the internet. I found all these flashy ads promising to get me funds, some even the same day. I applied and got approved for a loan, but when I was reviewing the contract, I saw that there was $45,000 being immediately deducted to pay my loan broker and other fees charged by the lender. The rate was listed as 20%, but I learned that was not the true APR I would end up paying. I would also be required to make daily payments that started the very next week, limiting the use of capital. To add insult to injury, I noticed that the lender this broker hooked me up with was placing restrictions on how I conducted my business. I immediately turned the loan down and told that shady business loan broker to lose my information!
Being an entrepreneur, I was not going to give up. I talked with some people in my business networks and I learned about Ashleigh Zelaya with Resonate Business Services. I gave her a call and she asked me some questions about my business, its revenue, net profit, and cash flow. She also asked me about my goals and about the amount and use of funding I was looking for.
Within an hour, she called me back and let me know that her preferred lending partner would be able to help me get the funding I needed. She facilitated the meeting with Corey and was there for any questions I had. I received approval and my loan terms that day. She then provided me with a free Financial Analysis and analyzed how the loan would impact my cash flow. I felt confident that this was the right loan to accomplish my goals. I signed everything, sent the required documents in and was funded $300,000 in 3 business days.
With the funds, I purchased the inventory at a discount and negotiated with my vendor a contract to continue receiving the discount. However, with the additional inventory, my growth was rapid and I knew that I needed some expert guidance to help me navigate the tight cash flow.
I engaged Ashleigh for services as my Cash Flow Consultant. With her services, we monitored the cash flow weekly to ensure that my growth was controlled and well-funded. After my Cash Flow Crunch was over, we transitioned to monthly services. After several months of working with her, we have increased my cash flow by $500,000 per year, I have 6.2 months of cash reserves to fund my business, and I know I am on track to exceed my one-year goals. My wife is extremely happy because I can finally take her on the Italian wine country tour she’s been dreaming of.
