Trying to find financing for my business?

about two months ago, I paid everything off on my credit report. My scores have now jumped to almost 650 and have been on the raise since opening and paying on time my car loan, and two credit cards with 300.00 limits. My problem is that I have a party rental company, which I have approx 100,000 worth of equipment that I own out right including a box truck. I recently moved, and now want to restatr my business, but have no money for advertising, and I need a few new items that have out dated. If I didn't move, I wouldn't have this problem. I even have about 15,000 worth of retail party supplies. So to my question, any idea where I can get a loan to start my business and get some new equipment.

First of all beware of scams offering you bank loans. If you have any equipment that you don't need have you considered selling it through a service like Ebay or your local classifieds. This could help you raise some immediate money. Also, if you are interested in a loan, you will need a written business plan. Have you considered taking on a partner that you know and trust that can give you some money and you can pay with back with interest? These may sound like simple ideas, but they work.

If it's this difficult to get a loan, be careful. The banks are inadvertently telling you something...you are at high risk of default. Even if someone does offer you money at this point, you will be paying a large amount of interest which, I'm sure I don't even need to tell you, will eat right into the bottom line of your business. Start small, borrow from family, continue to increase your credit score, and ALWAYS borrow with caution and at a minimum. Good luck!

If you don't have any liens filed against the equipment (own "outright"), then you can pledge them as collateral for a note. But....most banks will only loan 25-50% of their value, since they tend to depreciate fast and would be tough to liquidate in case of default.

Sounds like you need a revolving line of credit, and based on your credit worthiness, you may have to take a 2nd mortgage on your home and pledge a personal asset if you can't get it unsecured. The LOC will best suit your needs, as it injects cash flows during slower periods.

If you go the commercial loan route, the bank will want to see a business plan, which should include historical and projected figures.