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

How To Start or Expand A Business for $10,000 or Less WithoutConventional Financing

Starting a business and/or expanding one for less than $10,000 withoutconventional financing might be easier than you think. Many people arelooking for ways to control their financial future due to this economicmess. Many Americans have either lost their job, have their pay reducedor think they are in danger of losing their job in the near future.This economic recession is world wide and hasn’t discriminated. Frombanks and lenders, to Wall Street, to well known businesses, thisrecession has stripped Americans of not only cash flow or earnings butthe 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 andapplicants not looking for a job anymore, the rates may have exceeded20%. Many states have seen real estate loses up to 50% of their valuesince 2006. California, Arizona, Florida, New York and Nevada have gonethrough major job and real estate market changes.In this recession, many lenders have tightened their conventional lendingstandards and have made it almost totally impossible to obtain financing.Additionally, if they will finance your project, the restrictions could beimmense and monies available limited to economic times.Additionally, startup businesses have more obstacles to overcome andtherefore U.S economic growth and/or expansion has been limited.What does this mean to the company employee, the business personand/or the established business. This recession has created atremendous opportunity to start and/or expand a business for under a$10,000 investment. The types of industries we will address includeconstruction, trucking, transportation and all small business niches.

USCCLG

U.S. Corporate Capital Leasing Group Inc.

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 thiseconomic upheaval hasn’t been paralleled since the Great Depression.Banks are sitting on repossessed real estate, construction equipment andtrucking, transportation vehicles, medical, and tons of other commercialitems that we will describe later….These lenders must move theseinventories 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 theseinventories.As part of the liquidation process, these lenders are offering easyqualifying to prospective start up and seasoned businesses in order tomove these items. Easy qualifying can be in the form of the price andfinancing. We have seen minimum personal credit score qualifications aslow as 500 with down payments starting at zero. In some lending markets,there are no credit check programs, no personal credit is pulled. Thisincludes 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 thousanddollars down…Once again, this is based upon sub standard credit lendingpractices. .The financing described above is in the form of leasing. The lender willlease 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 beoffered 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 ageof the equipment being financed..Lets recap at this stage, the most important investment step can beobtained with marginal credit, the down payment is minimal and now wehave at our disposal a income producing asset……Lets review somenumbers,

Cost of asset…………………… $50,000Amount of down payment………… $4000Lease Term………………………… 48 monthsEstimated Monthly paymentIncluding taxes……………………..$1400Residual Buyout ……………………..10%Based upon these assumptions, we need to come with a small budget toproject out our monthly expenses. Advertising, Gasoline, Telephone,Utilities, Product Costs, Insurance, Financing payment, etc. Eachbusiness is different but a budget is a budget to come up with monthlyexpenditures. Once we have come up with these monthly expenses, weneed to look at the revenue stream. Whether it is based upon a signedcontract, an estimate based upon projections, the revenue stream mustcover the expenses to make sure the investment is worth it. The frontmoney for these other expenses should be minimal, a deposit maybe for rent, insurance, utilities, etc should run around $1000-5000 dependingupon the business…….Based upon the combination of the down payment on the asset weacquired, see above, and the monies required to get the businessrunning, $1000-5000, we are up and running for under $10,000 withoutconventional financing.The next question the start up or seasoned business is asking, is whereare all these great items I can acquire without good credit. The answer isthrough contacting lenders for bank repos and off lease lists, internetsearch inquiries, contacting lease and financing brokers etc.Check out internet through Google, Yahoo etc and enter off lease reposfor 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 theitems for sale. The internet search for auctions and liquidators would beanother great source of items for sale.The internet is a great way to create and run a business. Not only can youfind the right equipment, trucks, etc to acquire without conventional