lender attraction

 

Start Business Loans

Start Business Loans Blog

How Not To Borrow

Micro Loans

Attractive to Loans

Other Business Loan Options(this page)

Other Buyer Loan Options

Grant Proposals

Internet ATM

How To Interest

 

 

CONGRATULATIONS!

You have embarked on an exciting journey! Congratulations and best wishes. I'm real excited for you because you are now a member of a very special comunity! The Entrepreneurial comunity!

Business or Vendor Loans?

One loan gimmick you may want to consider is the vendor, or supplier loan. I call it a gimmick because it is a loan, but it is not really a loan.
What is a vendor loan?

This works real well if you are an artisan, craftsman, or work with products that need to be reconfigured. For instance, a clay pot maker would fall under this category, or a carpenter.  

How does this work?

Let's say that you are going on your own as a potter who makes small flower pots. You have the kiln, the tools, and the space already dedicated to the job. Through your contacts and just word-of-mouth, you secured a contract to make a large quantity of pots. Problem is that you don't have enough money to buy the product (clay, paint, etc) to complete the job. Borrowing money for this would be hard and would take far longer than you may have to complete the job. How do you resolve this?

The Lending Process?

You approach your vendors and show them your contract or agreement to provide so many pots for whomever your buyer is. Make sure that you trust the vendor and if you don't you may want to hide the buyer's information. Being straighforward with the vendor let them know that you need the product and will be willing to pay for their supplying you on generous terms. Such as 90 days due, or something like that. You could negotiate some terms that would be real generous but still allow you to get a profit from your deal.

What's in it for the Vendor?

The vendor gains because they will have sold product and profited from it. They would also gain you as a new customer with potential for more sales. They would also gain your goodwill and word-of-mouth marketing resulting from this sale.

What's in it for you?

You gain because you are "borrowing" the supplier's capital to start your business. You also gain because you will be able to prove your "character" in the marketplace. Your buyer will gain as well as they will realize they can trust you with their business. Everyone gains! And, you didn't have to borrow a cent.

You can duplicate this with any vendor.

Once you have established your reputation in the marketplace, you won't necessarily have this problem again, but it will be good reference for any other vendors, as they start working with you and realize the growth in business that you will be able to bring them.
If you would like more information on this or any other items here send me an email loans@start-business-loans.comwith your questions