

What's the Best Way for a Startup to Apply for a Loan? - throwawayone

Hi Guys,<p>I own a startup in the states with about 100 customers and 10K/month in revenue. All are recurring subscriptions.<p>We've been in business for about 2 years.<p>We've hired our first programmer a few months ago. I need to hire two more developers and also a web designer so I can stop programming full time and take the company to the next level.<p>I have two options. One, is keep things organic, and keep acquiring 2 to 4 customers a week until we can afford our next programmer, or take revolving line of credit from a bank and speed things up a notch.<p>I met with a couple of banks, but didn't apply because the process seemed too automated. I feel if someone took our business and studied it on its own merits (passion, customer satisfaction, processes, etc..) we will have a much better chance to get approved.<p>I'm looking for around 250K line of credit or loan.<p>Have any of you applied for a loan and got approved?<p>Are there banks that understand technology/startup companies better than others?<p>Any tips or help that you can provide would be greatly appreciated.<p>Thank you!
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jacquesm
That's about as easy as getting a drink out of a Vogon.

You'll need some collateral outside of your business, a debt free house or
something like that would go a long way. If you do have such a collateral you
can probably do much better (lower interest rates) if you mortgage it and then
put the money into the business. That does put you privately on the hook if
the business folds though.

In other times banks were stingy borrowing money to companies that don't have
a long track record and solid profits, especially companies without assets.
Today I would say that it is impossible, but maybe I'm wrong and you will find
a way to swing it. If you have a credit union locally that might be worth a
shot.

