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Jodilyn Owen posted a new Financing A Business thread on 5/24/2010

No collateral start-up loan

We are in Seattle and have a solid business plan and need start-up funding. We own a house but do not want to use it to secure the business loan. What are our options?
If you suggest finding investors, how do we go about finding them?

Thank you in advance!
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Alice Nadin Responded on 5/26/2010


There are may way to look for investors; they most frequent ones are family and friends who share your vision for this business. Another would be to look to similar facilities and approach them for a investment option or for insight into how they funded their venture. Depending on the ownership of those business you may or may not get interest/advice.

Next would be to approach your local business leader to learn who in your community are potential investors - a local leader would be your Director of the local Chamber Chamber of Commerce typically knows of local investors or how other like projects have found them. Additionally look to any local Business Development organizations for like advice or direction.

Entrepreneur Magazine has a helpful article that may also point out some other options ... see
http://www.entrepreneur.com/howto/raisemoney/1,5964,,00.html

AND BEFORE you take on any investor or partner be certain to have a solid legal agreement between all. While your business plan may be solid, may factors can change. Have a clear understanding of roles and responsibilities of all parties and commitment by you to pay/repay any investor. If you need legal advice consider contacting your local BAR association - find them at: http://www.abanet.org/

Lastly consider contacting your local SCORE office. They will be able to help you with more detailed free counseling. Go to www.score.org and use the FIND SCORE option.

Alice, SCORE Pittsburgh
 
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