How To Start or Expand A Business for $10,000 or Less Without Conventional Loans and Financing

Starting a business and/or expanding one for less than $10,000 without conventional loans and financing might be easier than you think. Many people are looking for ways to control their financial future due to this economic mess. Many Americans have either lost their job, have their pay reduced or think they are in danger of losing their job in the near future.

This economic recession is world wide and hasn’t discriminated. From banks and lenders, to Wall Street, to well known businesses, this recession has stripped Americans of not only cash flow or earnings but the equities they own in stocks, bonds, real estate and other investments.

 Not only has unemployment rate has reached or exceeded 10% depending upon the state, the real unemployment, including part time and applicants not looking for a job anymore, the rates may have exceeded 20%. Many states have seen real estate loses up to 50% of their value since 2006. California, Arizona, Florida, New York and Nevada have gone through major job and real estate market changes.

 In this recession, many lenders have tightened their conventional lending standards and have made it almost totally impossible to obtain financing. Additionally, if they will finance your project, the restrictions could be immense and monies available limited to economic times.

 Additionally, startup businesses have more obstacles to overcome and therefore U.S economic growth and/or expansion has been limited.

 What does this mean to the company employee, the business person and/or the established business. This recession has created a tremendous opportunity to start and/or expand a business for under a $10,000 investment. The types of industries we will address include construction, trucking, transportation and all small business niches.

 Since the lenders and banks have tightened their lending models, secondary lending markets have been created. The amount of repossessions and off lease products the lenders have taken back in this economic upheaval hasn’t been paralleled since the Great Depression.

 Banks are sitting on repossessed real estate, construction equipment and trucking, transportation vehicles, medical, and tons of other commercial items that we will describe later….These lenders must move these inventories as quick as possible to free up cash flow and working capital. These lenders are working with local and/or regional dealerships, liquidators, auction houses and other qualified parties to move these inventories.

 As part of the liquidation process, these lenders are offering easy qualifying to prospective start up and seasoned businesses in order to move these items.  Easy qualifying can be in the form of the price and financing. We have seen minimum personal credit score qualifications as low as 500 with down payments starting at zero. In some lending markets, there are no credit check programs, no personal credit is pulled. This includes start up businesses as well..

 Based upon this information, we have seen numerous examples of construction trucks, semi trucks, construction equipment, limousines, medical equipment etc being financed as low as a couple of thousand dollars down…Once again, this is based upon sub standard credit lending practices.  .

 The financing described above is in the form of leasing. The lender will lease the equipment, truck etc to the applicant, whether a start up or not, and offer a buy out option at the end of lease period. This buyout could be offered out at a $1.00, 10 %, 20%, fair market value etc…..Obviously, these buyout formulas will have an impact on the monthly payments.. These leases usually run from 24 to 60 months depending upon the age of the equipment being financed..

 Lets recap at this stage, the most important investment step can be obtained with marginal credit, the down payment is minimal and now we have at our disposal a income producing asset……Lets review some numbers, 

        Cost of asset……………………     $50,000

        Amount of down payment………… $4000

        Lease Term…………………………  48 months

       Estimated Monthly payment

          Including taxes……………………..$1400

       Residual Buyout ……………………..10%

Based upon these assumptions, we need to come with a small budget to project out our monthly expenses. Advertising, Gasoline, Telephone, Utilities, Product Costs, Insurance, Financing payment, etc. Each business is different but a budget is a budget to come up with monthly expenditures. Once we have come up with these monthly expenses, we need to look at the revenue stream. Whether it is based upon a signed contract, an estimate based upon projections, the revenue stream must cover the expenses to make sure the investment is worth it. The front money for these other expenses should be minimal, a deposit maybe for rent, insurance, utilities, etc should run around $1000-5000 depending upon the business…….

 Based upon the combination of the down payment on the asset we acquired, see above, and the monies required to get the business running, $1000-5000, we are up and running for under $10,000 without conventional financing.

 The next question the start up or seasoned business is asking, is where are all these great items I can acquire without good credit. The answer is through contacting lenders for bank repos and off lease lists, internet search inquiries, contacting lease and financing brokers etc.

 Check out internet through Google, Yahoo etc and enter off lease repos for sale, off lease semi trucks for sale, off lease construction trucks or equipment  in the search entry area. You will find a starting point for the items for sale. The internet search for auctions and liquidators would be another great source of items for sale.

 The internet is a great way to create and run a business. Not only can you find the right equipment, trucks, etc to acquire without conventional financing.The internet is a marketing highway to generate sales without another major investment. The following are ways to minimize your advertising through the following special methods:

 Paid per Click, Blogs, Article Marketing, Video Marketing, Social Bookmarking, RSS Feeds, Forums, etc…

 It is good idea that a website should be designed and updated monthly by a webmaster. The upfront costs on this area could run you $200-$1000. This website should be keyword intensive describing your business, services etc. Once this is established, then the marketing methods above can be utilized to drive traffic and generate sales from your website.

 Even though paid per click isn’t free through Google, Yahoo, etc, it will automatically generate traffic to your website. The other traffic methods mentioned above can drive tons of traffic to your site for free. ( blogs, rss feeds, social bookmarking, forums and article marketing )

 The search engines love good content to post on the left of their search engines for free. Good content is driven by matching keyword content, videos, press releases, to a well written and designed website.  The search engines love videos and some are posted to their search engines for free within a hour of creation…….Check out this area, the cost is minimal.

 The most important thing that this article is going to present to you is opportunity in a messed up economy to acquire a income producing asset. Bad credit can be worked around and minimum paperwork requirements for approval can be obtained.

 Let’s look at real situations and industries we can obtain numerous items to start or expand a business for minimal amounts with marginal or poor credit…………

       Check out these items which are not all inclusive

     Minimum Down Payments, No Conventional Financing

  Need to provide signed and dated lease application and the summary page of your last three months personal/business bank statements

                      START UPS ARE WELCOME

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