I need funding for my business, but don't have a lot of collateral. Any suggestions?
I'm a 27 veteran of the Real Estate Business and presently operating out of my home. I previously owned a Real Estate Franchise and felt overwhelmed with the overhead. This time I decided to start small and fund my own growth, but it's not happening fast enough. I don't have great credit, so I'm not sure where to turn for funding. I need a physical office and I need to recruit agents. I won't bring agents on board until I have a physical office.
You may use a good BP and collateral is needed when the risk is too much.
LBO can be used
You definitely need to have a solid business plan and be able to demonstrate that your idea ( as it appears to just be at that stage now) is viable. Think about how you can get proof to show there is a market for your product or service.
You may need to take on partners who have financial resources or other skills you need.
Why do you think you need an office?
Be prepared for a long 2-3 years, with very lean revenue. If you can't handle long periods with little to no cashflow, don't start the business now because the timing is wrong.
Be realistic about your situation, needs and goals.
Ebay started without an office and so did Microsoft,
Run before you can jump is one of the phrases we use in England
You will not grow fast without money and even if you have lots of money you then need time. Maybe start online and if you need to meet clients use a local cafe or restaurant.
or you could think like i would i want a office but have no money go and ask businesses have you a spare room or space.
I know one estate agent who set up like that and four very good friends. What i learnt was the big office is fancy but you pay threw the roof for it.
Once you have started like that and have a few clients you will find it that little bit easier to get a bit credit.
There are investors like business angels but you will need a really good business plan and i would expect like banks they don't like risk so a solid track record.