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THE SECRET OF RAISING MONEY WHAT TO DO ABOUT BAD DEBTS If in debt, you must devise some plan to get out of the red. You can declare bankruptcy, but that will tarnish your credit and financial records. An alternative is the "wage earner" plan, which allows you to meet your debts methodically without bankruptcy. remember, creditors hate bankruptcy because they may be left with no payment. To them, 20 percent of what you owe is better than nothing at all. But if you can get on the wage-earner plan, there is another solution. Sit down with your creditors and negotiate a payment plan. Tell them how much you can pay. believe me, they will settle for less than the actual amount owed. For more information on negotiating with creditors, refer to the section titled "Take Over An On-Going Business For Zero Down." WIPE OUT DEBTS WITHOUT BANKRUPTCY In 1938, federal law established the wage-earner plan, now administered by the same branch of our judicial system that handles bankruptcy. To take advantage of the plan, you must be a wage earner and most of your income come from wages, regardless of how much you make. You can discharge any amount of your debt under this law. Here's how it works: 1. Call the nearest U.S. District Court and find out the name of the trustee who administers the wage-earner plan; and make an appointment to see him. 2. Bring to your appointment all relevant financial records, such as payment books, contracts, etc. 3. The trustee will examines your finances and set up a plan by which portion of your debts is paid over a three-year period. 4. You then make your monthly payments to the trustee who, in turn, pays each of your creditors. THE OUTCOME A possible side effect of the wage-earner plan is the reduction of much of your debts, because a provision of your filing requires your creditors to appear in court. Statistics show that 40 percent of creditors fail to appear in court--in this case, you owe only 60 percent of your creditors their claims. In some cases, none of your creditors will appear. If this happens, all your debts are wiped out, without the pain of bankruptcy. If some of your creditors do appear in court, the court allows you to divide your payment into smaller amounts to be paid over a three-year period. Once you file, you will stop bill collectors, law suits, judgments, assignments, seized bank accounts, and other actions against you. Indeed, in many cases, your credit rating may improve because you have made an honest effort to work with the lending parties to pay off your debts. Your debt may be wiped out entirely if a creditor used deceptive trade practices to induce your purchase, as defined by the Uniform Commercial Code. You should also be aware that, that under the Homestead Act, your residence may be exempted from levy to the extent determined by local law. Check with a lawyer or your local courthouse for more details. ESTABLISHING CREDIT When first establishing credit, there are several things you should do: 1. Open a checking account at a bank. A checking account verifies that you have some dealings in the financial world; mortgage banks will allow almost certainly check how you've maintained it and, most importantly, your average balance. 2. Open as many charge accounts as you can. If any company will make you a loan, it is a department store, by means of a charge card--they know how closely their business is tied to charging. Use the cards liberally, making sure you will be able to pay off the accounts exactly according to the terms. 3. Use a cosigner. This frequently used method allows someone with no credit to get a loan relying on the good credit rating of someone else, say a parent. Banks are willing to risk the loan because the cosigner is just as liable for paying back the money as the true borrow. 5. Use a private loan company. These companies, such as Household Finance and Beneficial Finance, are more willing than banks to take a risk when lending money; for that risk, they charge slightly higher interest rates. Borrow up to your limit; pay it back religiously. MAINTAINING YOUR CHECKING ACCOUNT If you have no credit, possession of a checking account is one of the main factors weighed by bank lenders when deciding whether or not to give you credit. Write down all the details of every check you write. This practice can be very valuable during tax time. If some of your checking expenses are tax deductible, note that in your checkbook. You will find duplicate checks very handy. After writing a check and transferring the amount to the register, you should write in the new balance of your checking account. If you do this, you will always know how much money you have in your account. Double check that amount of the check matches the amount you have transferred to the check register. IF you carry a few check with you, don't forget to transfer the amounts to your check register. Enter all your deposits in your checkbook as soon as you make them. KEEPING YOUR CHECKING ACCOUNT BALANCED You should reconcile your checking account as soon as you receive your monthly statement. Keep your check in order, preferably by date. Compare each check you wrote with the bank statement. Mark each check off as you go along. Do the same with deposits. Get a check file so you can file your checks by month. If you ever need a canceled check, you can find it easily. Subtract the bank charges from the balance in your checkbook. To reconcile your checking account, do the following: Subtract all the check you have written that the bank has not deducted from your bank balance (don't forget outstanding checks from the previous month). Add all the deposits you have made that the bank has not credited to your account balance. After you have finished this, your new balance should equal your new checkbook balance. Some banks will reconcile your checking account for you if you have trouble. You should always leave a floating amount in your checking account. Every time you go under that amount, deposit more money. Keep your checking account in good order--it may determine whether or not you will be given credit. HOW CREDITORS RATE YOU Your credit record lists anyone with whom you have had credit dealings. The longer your credit has been extended and the larger amount you have been allowed to charge, the better your credit rating will be. PRESENT JOB The longer you are at a job and the higher you wages are, the higher your credit rating will be. Occupations are also important. Stable occupations improve credit ratings, as does more than 10 years employment. Utility companies will usually grant you credit if you have worked for the same employer for at least 18 months. CREDIT BUREAU FILE You should find out if there are errors on your credit bureau file and correct them. A bad rating with the bureau can ruin your chances of getting credit. BANK ACCOUNTS AND CREDIT CARDS If you have accounts in good order, you will ensure a high rating. Overdrawn checking accounts and unpaid credit card balances will hurt your rating. INCOME Your rating will improve, not because of what you make, but because of what you bring home (net income). AGE Generally, the older you are, the better risk you are. By law, those older than 62 cannot be rated lower than those younger. DEPENDENTS Usually, dependents do not improve your credit rating because they are considered expenses. Your ability to support your dependents will influence your credit rating. ADDRESS AND PHONE Having the same address and phone number for several years show stability, so the longer you have them, the better your credit rating. CAR OWNERSHIP If you own a car, especially a late model, your credit rating will benefit. You will also benefit if you are paying for the car on installments and if you have always paid on time. But car payments may also hurt you because they add to your expenses. EXPENSES AND DEBTS The more expenses, the lower your rating. A loan officer looks at how much money you have left after you meet your monthly expenses. He looks for a low-income-to-expenses ratio. DOWN PAYMENT If you want to buy something on credit, the larger the down payment you offer, the better your chances of success. The more you put down, the lower risk you are to the lender. METHODS OF GETTING CREDIT If you want to establish credit at a fast, but sure pace, follow these instructions. Open a savings account, and deposit money on a regular basis. Soon after, open an interest-bearing checking account. Have no overdrafts. Pay your rent and utility bills on time. To eliminate or reduce the large deposit usually required by utilities, have your employer verify that you have worked for him more than 18 months. If you apply for credit and are turned down, find out why. By law, the party that turned you down for credit must tell you why. When you find out why you were refused, improve that aspect of your credit history. Buy things on lay-away plans and pay them off in a week or two. After doing this a few times, apply for credit at the stores, and make sure the credit officers know about your lay-aways. Apply for credit from all the stores you know. If you do establish credit, make all payments early and don't miss a single one. Make sure you can pay back all the debts you incur. ANOTHER METHOD OF GETTING CREDIT For this plan to work, you need to start with a least $1,000. Borrow from friends if you have to. Go to a bank of your choice and deposit the money in a savings account. Wait a few days for the account to be posted, return to the bank and ask for a $1,000 loan, offering the money in your savings account as collateral. Since your money is excellent collateral, the bank will loan you the money without making a credit check. Next, go to another bank and open a savings account by depositing the $1,000 you just borrowed. return to the second bank a week later and ask for a loan using your savings account money as collateral. repeat this process with a third bank. Wait a few days, then open a checking account at a fourth bank. Begin making payments on each of the three loans. A week later, make more payments on your three loans until you have almost paid off all your balances. Any credit investigation will show you with three active bank loans, a checking account and a paying history for all three loans. Once you have established a good credit rating, you may apply for loans, credit cards and other forms of credit. PROTECTING YOUR CREDIT It is your job to protect your credit. Make sure: 1. If your loan application is rejected, ask if the reason is your credit report. If it is, get that report and correct any errors on it, no matter what time and effort are required. When the corrections are made, reapply for the loan. 2. If disaster strikes--you become ill or loose your job--and can't make payments, tell your banker. Don't lie and hide. 3. Know the laws that protect you: a) Fair Debt Collection Practices Act, which prohibits creditors from using false or misleading threats or abuse and harassment. b) Fair Credit Reporting Act, which allows you to get a copy of your credit report and correct errors. c) Truth in Lending Act, which makes lenders detail exactly how much the loan is going to cost you. d) equal Credit Opportunity Act, which forbids lenders denying you credit because of your age, sex, race or marital status. GET ANY CREDIT CARD YOU WANT If you establish credit using the above procedure, you should have no trouble getting any credit card you want, but there are still a few guidelines you should follow to ensure you have no difficulties: 1. Apply for department store cards first. Purchase something, and then pay the balance off when it comes due. 2. Apply for gasoline credit cards using department store cards as references. 3. Apply for bank cards, such as Mastercard and Visa. 4. Apply for entertainment and travel cards, such as American Express and Diner's Club. HOW TO GET ON A LOAN'S OFFICER'S GOOD SIDE 1. Have a good reason for requesting the loan. The likelihood of you repaying a loan for a trip to Europe is not as great as that of you repaying a loan for home improvements, a business venture, a real estate purchase, etc. Prove to the loan officer that your reason for requesting a loan is good and that you are not a high risk. 2. Be honest. Be honest when the loan officer asks you about your finances, but don't say more than you have to. 3. Don't get angry with the loan officer. He may say no today and yes tomorrow. 4. Be confident and optimistic at all times. 5. Agree with the loan officer on as many issues as you can. people don't like to hear the word "no." If you must disagree, this sales technique: "Yes, I understand what you're saying, but...." 6. Be calm and collected at all times. Don't be afraid of the loan officer. You will be doing as much for his institution as he will be doing for you. Being afraid will only make you nervous and jumpy. 7. Know as much as possible about the loan before you apply for it. This will put the loan officer on the defensive. 8. Be well dressed and groomed for the interview. 9. Be open to any suggestions or criticism, and try to see the situation from the loan officer's point of view. GETTING TURNED DOWN FOR A LOAN If you are turned down for a loan, find out why--it's your right. Request your TRW report, and be sure it is accurate. Correct any errors on it. By studying your credit report, you should be able to find out why you were refused. Work on your weaknesses, and try again for another loan. Don't give up until you get a loan. If you have done all you can to improve your credit rating, and are still unable to obtain from your bank, consider these options: 1. A credit union loan--often they are easier to get than loans from a bank, and the interest is sometimes lower. 2. A source other than your bank--often other lending institutions have less rigid qualifications for loaning their money; for examples, Household Finance and Beneficial Finance. Interest is usually higher, however. 3. A cosigner--often you will get a loan if someone with a good credit rating cosigns your application. RAISING LARGE AMOUNTS OF MONEY I have put together a list of some of the best creative financing techniques available. People have made a lot of money using these techniques, and that's why companies charge $10 to $20 just to share them with you. Raise $200,000 In 24 Hours With Only Your Signature As Collateral Many people have opportunities that require quick cash, but most are unable to capitalize because of a lack of ready money. There is a simple procedure that allows you to generate quick cash in 24 hours. The process is easy and fast, but requires that you first make necessary preparations and lay out the groundwork for the plan. Begin by going to 10 banks and telling the loan officer at each that you want to borrow $1,000 for 10 Days. After paying back your loans, wait 30 days before going back to the banks. This time, request a larger amount, depending on what you think the bank will loan, say $5,000. If each bank approves a $5,000 loan, you raise $50,000 the second time you collect from the banks. Continue this step-by-step process. Each time you go to the bank, ask for a larger loan and a longer pay back period. What you are doing is establishing a millionaire's credit rating using the process of repetition. That is, you are always paying back the money when it is due. Making your payments on time, combined with the number of loans that you have taken out and paid back, enables you to establish a very powerful credit rating and good relations with lending institutions. After using this procedure for about a year, you should be able to borrow $20,00 from each bank on just your signature. Using 10 banks in this plan, you will be able to borrow $200,000 on your signature in as little as 24 hours. HOW TO KEEP BORROWED MONEY INDEFINITELY A variation of the previous plan enables you to maintain a constant cash flow. By applying to twice as many banks, you may pay back loans with loans you receive from other banks. However, wary of using such a method, but don't forget that companies do this all the time. They issue bonds to pay off debts, and when these bonds are due, they issue more bonds. Debt-renewal systems are very common among investors. HOW TO RAISE $50,000 OVERNIGHT ON YOUR SIGNATURE You can borrow up to $50,00 and use for as long as you like. How? With the use of overdraft protection, which is, in effect, a loan. It is money that is transferred into your checking account when you overdraw. Once you qualify, this protection is automatic, but there is usually a predetermined overdraw limit set by your bank, and you usually have to pay interest on the money you borrow. Once you have worked out a "credit plan," it is not hard to get your application approved. The first step of this system is to open 10 checking accounts at four different banks. Apply for overdraft protection with a $5,000 limit at each bank. It is important that you apply for overdraft protection at each bank without the other banks knowing that you already have such accounts. Banks don't want to overextend you. If they know that you have other accounts, they may deny you accounts at their branches. You may think $5,000 is a high limit, but it's not for a bank. Banks often have checking accounts with overdraft limits of up to $25,000 Some banks may not give you a $5,000 limit at first, but don't let that discourage you. Stay with the bank for a few months, then reapply for the $5,000 limit. Do you see how easily you can transform this overdraft protection into $50,000 cash overnight with only your signature as collateral? You can raise $50,00 by writing 10 checks for $5,00 each. KEEP MONEY FOR AS LONG AS YOU LIKE Banks usually require you to pay back 5 percent, or one-twentieth, of the loaned amount every month. However, this rule is not always enforced. If you keep your loan under the overdraft limit, the bank may not require you to make principal or interest payments. Some banks require you to make payments every month. How can you keep the money? Borrow money from eight different banks, each with $5,000 overdraft limits, and you have $40,000 to use. Let's say that your loan payments total $2,200 per month. Use a loan from a ninth bank to make the first two monthly payment. For the third monthly payment, use the money from your other accounts to pay off the loan from the ninth bank. Repeat this process, and you will be able to keep the money indefinitely. This process works if the banks do not charge you interest on the money you borrow. If they do charge you interest, you can only keep the money for a limited time. In any case, it is very important to have a good investment for the money you borrow. MULTIPLY YOUR MONEY WITH A 'Compensating Account' You can get a loan from a bank by depositing a "compensating balance" into an account. In most cases, a compensating balance amounts to about 20 percent of the loan it is insuring. You may be able to borrow up to five times the amount you deposit into the account. Your ability to use this process depends on how good your credit rating is. If you have a poor credit rating, you may have to deposit a higher percentage of the loan. GETTING AN INSTANT LOAN, INTEREST FREE Mastercard and Visa have a service that allows you to get a free loan with their special check-writing service. The check you write is simply billed against your credit card, and has the effect of an instant loan. You may have a seen this type of check with your regular statements. The way to make this loan pay off is to find a bank that accepts this type of special check with a 30-day grace period. To get an indefinite loan, write the first special check and do whatever you want with the money. Then write a second special check and deposit the money into your checking account. Use this money to pay back the credit card company. In this way, you may keep the money indefinitely. HOW TO RAISE $50,00 USING YOUR CREDIT CARDS In today's "credit World" virtually everyone has credit cards. Millions of Americans carry as many as 30 credit cards, with credit limits averaging about $1,000 per card. With just your credit cards, you can get more than $15,000 in cash and merchandise. even hard-to-get credit cards, like American Express and Carte Blanche are easy to get once you have cards like Mastercard and Visa. American Express and Carte Blanche have limits as high as $20,000. Combining these cards with cards like Visa and Master Card can give you credit up to $50,000 for 60 days, with no interest. RAISING MONEY USING DEPARTMENT STORE CARDS You can use your department store cards to raise quick cash. Simply go to the stores that have issued you cards and charge merchandise. A few days later, return the merchandise for merchandise-credit slips instead of having your account credited. These slips may be used for future purchases, and they are as good as cash in those particular stores. Then cancel these credit slips to your friends and neighbors for a 10-percent discount. Since this money is to be used for an investment, make sure the investment will pay higher than 10 percent. If you begin this plan right after your monthly billing notice, you will have the use of the money for 60 days and pay no interest to the department store. SAVE 33.3% ON CREDIT CARD INTEREST CHARGES In most states, banks are allowed to charge you only 1.5 percent on unpaid balances of your credit card accounts. This comes out to 18 percent per year, which is a high interest rate. Because these states consider them loans, the banks can only charge you 1 percent interest per month. That's 12 percent per year. How can you use this to your advantage? Make purchases with your credit cards, and pay off these same purchases with a cash advance. With this method, you pay for the purchases about 30 days after you make them and at a rate of only 1 percent per month. You will cut your credit expenses by one-third using this method. ALTERNATE METHOD This method of raising capital requires that you place a classified ad in the business opportunities section of your Sunday newspaper. Here are a few examples: Will pay___ percent interest on small loan for a short period. Sound collateral. Your name and phone number. Advertise in the "Business Opportunities" or "Capital Wanted" sections of the paper. If you live in a small town, put the ad in a big-town newspaper. THE CORPORATE METHOD OF RAISING MONEY You can get money you need by forming a corporation. Besides being easy to form, there are many advantages. For instances, you can be authorized to sell one million shares of stock at no par value when creating the charter for the corporation. Let me show you an example of how your corporation will work. First, issue one million shares of stock once you are authorized to do so. Keep 300,000 shares for yourself and reserve another 300,000 for future sales to the public. The remaining 400,000 shares should be issued for public sale at about $1 per share. If you sell 100,000 shares, you will have raised $80,00 after deducting a 20 percent broker's fee. In time, your stock may go up to $5 per share. Your stock that was worth $300,000 will then be worth $1.5 million. You will have quadrupled the worth of your stock. And this doesn't include the stock that you reserved for future sale. You may find this example hard to believe, but the truth is, people just like you make it work. If you have a worthwhile venture, this may be your best option. I must point out one drawback of this method. You must go through the United States Security Stock Commission in order to incorporate. For this you will need legal council, which is expensive. However,many lawyers will accept shares of stock in your corporation as payment for their service. DO AWAY WITH SEC REGISTRATION There is a way to sell and trade stock without going through the SEC red tape: Price your stock at 10 cents per share and make the total selling price of the corporation's stock less than $50,000. These shares are known as penny stock. You may begin by issuing 100-share lots and distributing them to those you feel want to invest in your venture. Before you know it, you will have raised thousands of dollars, interest-free, which you will never have to pay back. TAKE OVER AN ON-GOING BUSINESS WITH ZERO CASH I Have spoken to many people who want to start their own businesses, and I fully support their efforts. I believe in learning from others, in not reinventing the wheel. If you have had a lot of experience in a certain field, you should have no trouble operating a business related to that field. But if you have little or no experience in a business, you have two choices: work for a company to gain experience in the field you want to enter; or buy an existing business. To buy a business, you need money. This section will show you how to buy an existing business inexpensively. Preferably you will know a great deal about the business you are entering. GETTING STARTED To get started, look for a business that is in deep trouble, one that is almost bankrupt. Many such businesses may be acquired with little or no down payment. They may be manufacturing businesses, service businesses, real estate businesses, etc. Why would someone offer a business for zero cash down? here's why: 1. The owner of a failing business wants to get out from under his bills and headaches. 2. He believes the business is beyond saving. 3. Finding a buyer for a heavily indebted business is extremely difficult. There are always plenty of cash-flow take-overs available, whatever the state of the economy. These business offers are often advertised, but you have to look for them. Search through business ads in newspaper classifieds and trade magazines, check with local business brokers and with local real estate agents who also handle business sales. FIND OUT EVERYTHING Once you find a suitable firm, learn all its details. For instance, find out how much the business owes and to whom, the value of the inventory and all machinery and the value of the building and the property itself. Look for a company in which the inventory and assets are higher than the debts. Also consider the sales income and expenses required to operate the business profitably. Examine such things as gross sales, selling and labor costs, taxes owed, etc. This information may be gathered from the firm's account books, income tax returns or from an accountants' certified statement. MAKE YOUR OFFER Explain your belief to the owner that you can turn the business around and make it profitable, but that it will take at least two years. Here is a typical offer to make the owner of such a business: Zero cash down Pay all company debts Promissory notes No payments for two years Be sure your lawyer draws up a proper sales agreement before you buy. You should also make arrangements to pay the attorney's legal fees from the business funds, not out of your own pocket. If you find that the owner insists on a nominal down payment,, you may use any of the capital-raising methods described earlier to come up with cash. However, you must insist on paying the bulk of the price with promissory notes. You must also insist that payments do not begin for a year, preferably two. You will need that much time to turn the business around and show a profit. Once you acquire the sick business, you must take certain steps to make it profitable. The first step is to deal with the creditors. Here's what you do. Set up an appointment with each creditor to discuss the firm's indebtedness. Explain to each that you have just taken over the business, and that you would like to pay off all the debts as soon as possible. Tell them that the business has no cash at the moment, but that you hope to start showing a profit in six months to a year. Your strategy is to convince the creditors to accept a reduced settlement of the debt. First, try to get a reduction of 30 to 70 percent of the total debt. You may also insist that payments do not begin for at least one year. Your third request will be for long-term repayment, 10 years if possible. Once the creditors accept your offer, make it legal by having them sign agreements. With this maneuver alone, you will have reduced your debt from 30 to 70 percent, lowered payments by getting the payoff time extended, and received complete debt relief for the whole year. Taking care of the business' debts helps substantially. The business is then in a far better position to recover from its ailments, but don't stop there. There are other things you can do to improve its financial standing, such as: 1. Sell excess inventories: finished goods or raw materials. 2. sell obsolete production machinery 3. Sell more company stock 4. Sell a separate division of your company. 5. Split your company into separate firms and sell stock for both. 6. Make any cost cuts you can: reduce payroll, find cheaper supply sources, eliminate waste, etc. 7. Eliminate products, services or accounts that are only marginally profitable. 8. Study how to increase sales and locate new markets. As incredible as it may sound, there are many businesses saved by using these methods. All too frequently, owners are completely unaware of the true value of their businesses. In many cases, an owner has exhausted his operating capital and credit through mismanagement. Your offer allows him to recoup some of his investment, and it may be the only one he gets. THE CORPORATE TAKEOVER You may use a variation of the promissory-note method offering the owner corporate stock as a down payment, or even as full payment if the owner is desperate. Assuming you set up a corporation with 10 other investors, the owner will be assured of a sales potential of 10 customers for his stock, once the business gets going. HOW TO CREATE SUCCESSFUL LOAN REQUESTS The proposal you submit for your loan will determine whether or not the banker will give it to you. The following formula will show you how to apply successfully for a loan. COVER PAGE On this page, include your name and address and the names and addresses of any others who are applying jointly with you. This page goes on the front of the loan request, and it should contain the title of your request. LETTER OF REQUEST This letter may be the most important part of your loan request, and it will determine if you get the loan. The letter must get right to the point and tell the loan officer exactly what he has to know in one or two pages. The letter should tell the officer: 1. Why you want the loan. 2. How much capital you want. 3. How you propose to pay back the loan. 4. Any personal information that may help you get the loan. CREDIT APPLICATION You may obtain a credit application form from any lending institution. DATA SHEET This form, similar to a resume, is very helpful to the lender. It contains background information about yourself and all your personal information, such as name, address, height, weight, marital status, birthdate, etc. It also includes information about your past four jobs, three references and a complete record of education. MARKETING PLAN FOR BUSINESS VENTURE If you try to get a loan for a business venture, this part of your proposal is one of the most important. The function of the marketing plan is to show the lender what you will do with the money loaned you and how you will pay it back. The marketing plan proves to the lender that you will make a profit. The following six steps should be taken when creating your marketing plan. If you have trouble, contact your local SBA office for assistance. 1. Analyze Your Present Marketing Situation In order to project your company's future achievements, you must know where it stands at the present time. In this portion of your marketing plan, analyze your company's financial resources, competitive strengths and weaknesses, organizational set-up, market conditions, experience, management capabilities, clientele, channels of distribution (how you will distribute your product) and your competition. 2. Determine Your Marketing Objectives This step provides guidance and direction for your company. Here, you tell the lender exactly what you want your company to achieve. But remember to be specific and make sure that the numbers can be measured, such as: "Increase the market share of widgets 10 percent from January 1 to December 31, 1984." You do not have to know these numbers precisely, but you should make a rough estimate of what your company can achieve. 3. Assess Your Company's Capabilities In this step, show the lender how you will use your resources to reach your objectives. You must show that you have every resource necessary to reach your objectives, except one: a certain amount of money. In this step, explain past experiences and accomplishments that you, your company, or other company officers have had that could aid the future of your firm. Also mention anything favorable in Step 1 that may help you reach your objectives, such as your clientele, receivable, equipment, etc. 4. Create A Marketing Strategy In this step, show the lender your plan or strategy for meeting your objectives. This may include continuation or revision of an existing strategy, or be completely different strategy. A strategy is a complete plan of how you will best use your resources to meet your objectives. List each activity you will perform. It is also important to establish which duties or activities will be delegated to which person. 5. Put Your Overall Plan On A Time Schedule In this step, place the activities you have listed in the previous step on a time schedule. List each activity and show how long it will take you to complete. You should also show beginning and completion dates. Do this with all your marketing activities. The lender not only sees what you plan to do, but how long it will take you. 6. Control And Evaluate Your Plan You should have a method of evaluating your process as you follow your plan. You should be able to control all the proposed activities and make sure they are on schedule. For examples, if your objective is to obtain 300 accounts within a 10-mile zone, your control activity will check that you have done just that. The control activity will be a monthly record of the number of accounts you have obtained within the designated 10-mile zone. Financial Statements Personal financial statements of all persons involved in the business venture are important to the lender. Current, as well as projected financial statements, should be included in the loan request. Projected financial statements are statements that show how predicted sales will affect future financial conditions. It is advisable to have an accountant help you prepare your statements. Statement Of Capital Expenses This statement shows the lender exactly what you plan to do with the money he loans you. You should itemize how each dollar he lends you will be spent. REAL ESTATE LOANS Having a professional, independent appraisal of the property is the first requirement. If possible, include pictures of the property, as well as maps showing its exact location. GETTING MONEY FROM VENTURE CAPITAL SOURCES Venture capital institutions will finance business investments. And since they assume the risk, they ask for equity in your business. A conventional source for a business loan takes your collateral if the business fails and charges you interest on the loan. What makes venture capital source different? Since they own part of your business, you don't have to pay them interest. Venture capital companies invest in companies that they feel will make them money. They also specialize in certain industries or fields. You will have to write them to find out where they prefer to place their money. These companies have fluctuating funds. There are times when they can loan a lot of money, and others when they don't have much to spare. Keep writing the same venture capital companies in your field. You may approach them when they have a glut of capital to loan out. It is important that you submit a professional presentation to these companies. Your chances of getting the funds will be much greater if you present your case well. Look over the section on creating a successful loan request. Follow the steps I outlined for you on your loan presentation. If you do, you have a good chance getting the money you need. VENTURE CAPITAL SOURCES The following companies asked to be listed in this book because they expressed a desire to finance new or existing ventures. Write them for more information. Explorer Fund, Inc.,28 State St.,Boston, MA 02109 State Street Bank Company, 225 Franklin St.,Boston, MA 02110 Paine Venture Fund, Box 73, Boston, MA 02110 Resources & Tech MGT Company, Box 100 Chestnut Hills, MA 02167 Gemini Associates, 234 Pearl St.,Ste One, Hartford, CT 06103 Hartford Comm. Capital Corp.,70 Farmington Ave.,Hartford, CT 06106 The Prospect Company, One Tower Eq.,Hartford, CT 06115 First Conn. S.B.I.C., 177 State St.,Bridgeport, CT 06604 Charter Oak Enter.,CBT Plaza, Darien, CT 06820 Paul Revere Investors, 1275 King St.,Greenwich, CT 06830 Anderson Invest. Com.,49 Locust St.,New Canaan, CT 06840 Wehr & Associates, 4 Forest Dr.,Westport, CT 06880 Western Group, Inc.,Box 1273, Weston, CT 06880 University Capital Corp.,107 Jefferson Ave.,Westfield, NJ 07090 Main Capital Investment Corp.,818 Main St.,Hackensack, NJ 07601 Wall Street Venture Capital, 2 Esterbrook Lane, Cherry Hill, NJ 08002 DSV Associates, 221 Nassau St.,Princeton, NJ 08540 Gunwyn Ventures, 14 Nassau St.,Princeton, NJ 08540 H.J. Morgan Company, 30 W. Prospect St.,East Brunswick, NJ 08816 Schroder Capital Corp.,One State Street, New York, NY 10004 Kalb Voorhis & Com.,27 Williams St.,New York, NY 10005 Loeb Rhodes & Company, 42 Wall Street, New York, NY 10005 American Capital Partners, 261 Madison Ave.,New York, NY 10016 BT Capital Corporation, 600 3rd Ave.,New York, NY 10016 Bancap Corporation, 420 Lexington Ave.,New York, NY 10017 Royal Business Funds, ^ East 43rd St.,New York, NY 10016 R.E. Hart & Com.,Inc.,380 Madison Ave.,New York, NY 10017 Bradford Ventures, LTD.,10 Rockfeller Plaza, #1010, New York, NY 10020 Winthrop Ventures, 527 Madison Ave.,New York, NY 10020 Whitcom Investment Company, 110 W 51st St.,New York, NY 10020 Time Incorporated, 1271 Avenue of the Americas, New York, NY 10020 Rockefeller Bros.,Inc.,30 Rockefeller Plaza, New York, NY 10020 The Franklin Corporation, ONe Rockefeller Plaza, New York, NY 10020 Exxon Enterprises, Inc.,1251 Ave. of the Amer. Rm 4448, New York, NY 10020 Capital For Future, Inc.,635 Madison Ave.,New York, NY 10022 Technimetrics, Inc.,527 Madison Ave.,New York, NY 10022 Stewart Capital Corp.,485 Madison Ave.,New York, NY 10022 Stewart R. Mott Associates, 515 Madison Ave.,New York, NY 10022 Masco Associates, 437 Madison Ave.,New York, NY 10022 Jacobs Investment Com.,645 Fifth Ave.,New York, NY 10022 Llyod Capital Corporation, 186 Riverside Dr.,New York, NY 10024 Emerging Ventures International, 1350 6th Ave.,New York, NY 10027 R.W. Cross & Company, Inc.,1175 Park Ave.,New York, NY 10028 Midland Capital Corporation, 110 William St.,Rm 2605, New York, NY 10038 Pioneer Ventures Com.,One Battery Park Plaza, Buffalo, NY 14202 Tait & Legge, 110 Allens Creek Rd.,Rochester, NY 14618 Hillman Company, 2000 Grant Bldg.,Pittsburg, PA 15219 Osher Capital Corp.,Wyncote House 101, Wyncote, PA 19095 Allied Capital Corp.,1625 Eye St.,N.W., Rm. 603, Washington, DC 20006 Columbia Ventures, Inc.,1701 Pennsylvania Ave.,N.W. Washington, DC 20006 Greater Washington Investors, Inc.,1015 18th St.,N.W. Washington, DC 20036 Dorset Associates, 135 E. Baltimore St.,Baltimore, MD 21202 Southern Investment Corp.,P.O. Box 6610 Newport News, VA 23606 Montag & Caldwell, Inc.,2901 First National Bank, Atlanta, GA 30303 Southeastern Capital Corporation, 380 Interstate North, Ste 475, Atlanta, GA 30339 Urban Ventures, Inc.,825 S. Bayshore Blvd.,Miami, FL 33137 Gold Coast Capital Corporation, 3550 Biscayne Blvd.,Miami, FL 33137 North American Company, 111 E. Las Alas Blvd.,Fort Lauderdale, FL 33301 Business Research Company, P.O. Box 2137, Palm Beach, FL 33480 Investment Cap. Corp.,P.O. Box 2069, Montgomery, AL 36103 Standard Growth Capital, Box 10106, Knoxville, TN 37919 Financial Resources, Inc.,1909 Storick Bldg.,Memphis, TN 38103 Community Venture Co.,88 E. Broad St.,Columbus, OH 43215 Dycap, Inc.,88 E. Broad St.,Columbus, OH 43215 American Fletcher Mortgage Co.,606 Madison Ave.,Toledo, OH 43604 Morgenthaler Associates, P.O. Box 91052, Cleveland, OH 44101 Capital Funds Corp.,127 Public Square, Cleveland, OH 44114 Houston & Associate, Inc.,9 Hickory Hollow, Birmingham, MI 48010 Growth Equities, LTD.,2116 Financial Center, Des Moines, IA 50309 Wisconsin Capital Corp.,840 N. 3rd St.,Milwaukee, WI 53202 Commercial Capital Corp.,6001 N. 91st St.,Milwaukee, WI 53225 Eagle Investment Corp.,921 Marquette Ave.,Minneapolis, MN 55402 North Star Industries, 4570 W. 77th St.,minneapolis, MN 55435 Northland Capital Corp.,402 W. 1st Street, Duluth, MN 55802 Vanguard Venture Capital, 301 E. Main St.,Barrington, IL 60010 Venture Capital Corporation, 540 Frontage Rd.,Northfield, IL 60093 Advance Capital Growth Corp.,401 Madison St.,Maywood, IL 60153 William Blair & Co.,135 S. La Salle St.,Chicago, IL 60603 Stewart Capital Corp.,100 S. Wacker Dr.,Rm. 202, Chicago, IL 60606 Atlant/La Salle Capital Corp.,150 S. Wacker Dr.,Chicago, IL 60606 Urban Fund, Inc.,300 N. State St.,Chicago, IL 60610 First Capital Corp.,One First National Plaza, Chicago, IL 60607 Business Capital Corp.,1732 Canal St.,Ste 110, New Orleans, LA 70112 Brittany Corp.,4324 Republic Bank Tower, Dallas, TX 75201] Venture Adviser, Inc.,2828 Forest Ave.,Dallas, TX 75215 Venture Investment Corp.,714 N. Valley Mills DR.,Waco, TX 76710 Telecom Corporation, Houston Natural Gas Bldg.,Houston, TX 77002 Enterprise Capital Corp.,4635 S.W. Freeway, Rm. 465, W Houston, TX 77027 Ricky Hicks, 6448 Fannin St,.,Houston, TX 77030 Hixon Ventures Co.,341 Milam Bldg.,San Antonio, TX 78205 Riuss $ Company, Alamo National Bldg.,San Antonio, TX 78205 Cambridge Banking, 1711 Security Life Bldg.,Denver, CO 80202 Denver Coalition Vent.,1711 Pennsylvania, Denver, CO 80202 Venture Associates, 1020 15th St.,Denver, CO 80202 R.W. Halliday Associates, P.O. Box 8508, Boise, ID 83701 Dineh Cooperatives, P.O. Box 569, Chintle, AZ 86503 Capital Manag. Serv.,611 West 6th St.,Los Angeles, CA 90017 Union Venture Corp.,445 S. Figueroa ST.,Los Angeles, CA 90017 Manus, Incorporated, 900 Wilshire Blvd.,Los Angeles, CA 90036 Professional S.B.I.C., 5979 W. 73rd St.,Los Angeles, CA 90036 Goodman & Mautner, LTD.,5250 W. Century Blvd.,Rm 444, Los Angeles, CA 90045 Brentwood Associates, 11661 San Vincente Blvd.,707, Los Angeles, CA 90049 Source Capital, Inc.,1888 Century Park East, Los Angeles, CA 90067 Wilshire Cap. Corp.,1000 Santa Monica Blvd.,Los Angeles, CA 90067 Developers Equity Com., 9348 Santa Monica Blvd.,Beverly Hills, CA 90210 The Foothill Group, 9383 Wilshire Blvd.,Beverly Hills, CA 90211 Manning & Com.,29438 Quailwood Dr.,Rancho Palos Ver., CA 90274 H.M. Eldridge, P.O. Box 1983, La Jolla, CA 92037 Alison Promotions, 5834 Soledad Mt. Rd.,La Jolla, CA 92307 Capital City Equity, 811 N. Broadway, Ste 500, Santa Ana, CA 92701 Equity Capital Corp.,25 Cornelia DR.,Hillsborough, CA 94010 Kliener & Perkins, 3000 Sand Hill Rd.,Menlo Park, CA 94025 Menlo Investment Com.,3000 Sand Hill Rd.,Menlo Park, CA 94025 Osco Ventures, 3000 Sand Hill Rd.,Rm 105, Menlo Park, CA 94025 Oak Grove Ventures, 2200 Sand Hill Rd.,Rm 110, Menlo Park, CA 94025 H&R Investment Cap.Co.,801 American St.,San Carlos, CA 94070 General Pacific Inv.,321 10th St.,San Francisco, CA 94103 The Merchants Group, 300 Montgomery St.,Rm. 908, San Francisco, CA 94104 Rock & Asso., 235 Montgomery St.,Rm. 1635, San Francisco, CA 94104 Opportunity Cap. Corp.,100 California St.,Ste 714, San Francisco, CA 94109 Bruce A. Blinn & Ass.,415 Merchant St.,San Francisco, CA 94111 Asset Management Com.,1411 Edgewood Dr.,Palo Alto, CA 94301 Hoebich Venture Manag.,860 Hamilton Ave.,Palo Alto, CA 94301 McMorgan & Company, 1000 Welch Rd.,Palo Alto, CA 94304 P.M. Investment Com.,1000 Welch Rd.,Palo Alto, CA 94304 San Fran. Venture Cap, 31285 San Clemente, Hayward, CA 94544 R&D Capital Company, 2700 Merced St.,San Leandro, CA 94577 FMC Corporation, 1185 Coleman Ave.,Box 580, Santa Clara, CA 95052 Delta Invest. Com.,555 Capital Mall, Rm 640, Sacramento, CA 95814 Trail Capital Corp.,1200 Westlake Ave.,North, Seattle, WA 98109 SMALL BUSINESS INVESTMENT COMPANIES Small business investment companies are privately owned by the stockholding public. They have good flexibility when giving loans to businesses, about 90 percent of which are eligible. Each SBIC has a federal licence to operate under the SBIC Act of 1958. Each SBIC has their own rules and regulations in regards to loaning. Here is a list of SBIC's. Write them for information on their lending policies. Massachusetts SBIC Inc.,75 Federal Street, Boston, MA 02110 Parker Corp.,265 Franklin St.,Boston, MA 02110 Northeast SBI Corp.,16 Cumber land St.,Boston, MA 02115 Boston Financial & equity, P.O. Box 68, Boston, MA 02215 Pilgrim Capital Corp.,842 A Beacon St.,Boston, MA 02215 Industrial Capital Corp.,111 Westminster St.,providence, RI 02903 New England Investments, 157 High St.,Portland, ME 04101 Manufacturers SBIC, 1488 Chapel St.,New Haven, CT 06510 Nutmeg Capital Corp.,35 Elm St.,New Haven, CT 96510 First Connecticut SBIC, 177 State Street, Bridgeport, CT 06603 All State Venture Capital Corp.,P.O. Box 442, Westport, CT 06603 Engle Investment Co.,35 Essex St.,Hackensack, NJ 07601 Main Capital Company, Inc.,818 Main St.,Hackensack, NJ 07601 CMNY Capital Company, Inc., 77 Water Street, New York, NY 10005 Creative Capital Corp.,214 Mercer St.,New York, NY 10012 Forum Equity Corporation, 214 Mercer St.,New York, NY 10012 New Mexico Capital Corp.,1420 Carlisle Ave.,N.E.,Albuquerque, NM 10017 Great Eastern SBIC, 230 Park Ave.,New York, NY 10017 Basic Capital Corp.,40 West 37th St.,New York, NY 10018 The Franklin Corp.,1410 Broadway, New York, NY 10018 Struthers Capital Corp.,630 Fifth Ave.,New York, NY 10020 Capital For Future, Inc.,635 Madison Ave.,New York, NY 10022 Conresco Corp.,444 Madison Ave.,Ste 3701, New York, NY 10022 Winifield Capital Corp.,237 Mamaroneck Ave.,White Plains, NY 10605 First Westchester Corp.,491 Main St.,New Rochelle, NY 10801 Lake Success Capital Corp.,100 Garden City Plaza, #516, Garden City, NY 11530 Jefferson Capital Corp.,1228 Wantagh Ave.,Wantagh, NY 11793 Monticello Capital Corp.,34 Norh St.,Monticello, NY 12701 First Pittsburgh SBIC, 1919 Rick Bldg.,Pittsburgh, PA 15219 Sharon SBIC, 385 Shenango Ave.,Sharon, PA 16146 Fidelity America SBIC, 1520 Locust St.,Philadelphia, PA 19102 Delaware Valley SBIC, 1604 Walnut St.,Philadelphia, PA 19103 Philadelphia Ventures, Inc.,1712 Locust St.,Philadelphia, PA 19103 Capital Investment Com.,900 17th St.,N.W.,Washington, DC 20001 Housing Capital Corp.,1133 Fifteenth St.,N.W., Washington, DC 20015 Hudson Investment Co.,1150 17th St.,N.W., Washington, DC 20036 Mortgate Capital Corp.,1925 N. Lynn St.,Arlington, VA 22209 Tidewater SBIC, 300 Boush St.,Norfolk, VA 23510 Charleston Capital Corp.,19 Broad St.,Charleston, SC 29401 Kent Investment Company, 695 E. Wesley Rd.,N.E., Atlanta, GA 30324 Central Florida Investments, P.O. Box 13646, Orlando, FL 32809 First Miami SBIC, 420 Lincoln Rd.,Miami Beach, FL 33139 North Alabama SBIC, P.O. Box 430, Anniston, AL 36201 Financial Resources, Inc.,1909 Sterick Bldg.,Memphis, TN 38103 Financial Opportunities, Inc.,981 S. 3rd St.,Louisville, KY 40201 Associated Investment Com.,320 Associates Bldg.,South Bend, IN 46617 Indiana Capital Corp.,927 S. Harrison St.,Fort Wayne, IN 46802 Financial Investors, 185 Devonshire St.,Boston, MA 46802 Waterfield SBIC, Inc.,123 W. Berry St.,Fort Wayne, IN 46802 Hawaii Econ. Devel. Corp.,P.O. Box 1427 Dillingham Rd.,Honolulu, HI 46817 J & M Investment Corp.,3044 W. Grand Blvd.,Detroit, MI 48202 Midwest SBIC, 1921 First Natl. Bank Bldg.,Detroit, MI 48226 Mor-America Capital Corp.,200 American Bldg.,Cedar Rapids, IA 52401 Northern States Capital, 330 E. Wilson St.,Madison, WI 53701 Chicago Community Ventures, Inc.,19 S. Lasalle St.,Ste 1114, Chicago, IL 60603 Minnesota SBIC, P.O. Box 1227, Minneapolis, MN 55440 First Heartland Com. Inc.,405 8th Ave.,N.E., Aberdeen, SD 57401 Berkshire Capital, Inc.,405 8th Ave.,N.E., Aberdeen, SD 57401 Small Business Improvement Co.,P.O. Box 1175, Billings, MT 59103 Abbott Capital Corp.,120 S. La Salle St.,Chicago, IL 60603 Chicago Community Ventures, Inc.,19 S. Lasalle St.,Ste 1114, Chicago, IL 60603 Vencap Fund, 10 S. La Salle St.,Chicago, IL 60603 Heizner Corp.,20 N. Wackee Dr.,Chicago, IL 60606 The Urban Fund, Inc.,1525 E. 53rd St.,Chicago, IL 60606 Combined Opportunities, Inc.,5050 N. Broadway, Chicago, IL 60640 Funded Investment, Inc.,6430 N. Central, Chicago, IL 60646 North Central Capital Corp.,203 Mulberry St.,Box 998, Rockford, IL 61105 Century Capital Corp.,250 N. Water St.,Decatur, IL 62523 Atlas SBIC, 1808 Main St.,Kansas City, MO 64108 Midland Business Investments, 122 W. Myrtle St.,Independence, KS 67301 First Small Business Investment, 1614 S. Bayou Dr.,Golden Meadow, LA 70537 Mid South Capital Corp.,312 Polk St.,Mansfield, LA 71052 Morris Capital Corp.,P.O. Box 20696, Oklahoma City, OK 73120 Investment Capital, Inc.,1301 Main St.,Duncan, OK 73533 First Dallas Capital, Corp.,P.O. Box 6031, Dallas, TX 75222 Central Texas SBIC, P.O. Box 829, Waco, TX 76703 SBIC of Houston, 640 West Bldg.,Houston, TX 77002 South Texas SBIC, 121 S. Main St.,Victoria, TX 77901 Colorado SBIC, Inc.,P.O. Box 5168, Denver, CO 80217 Intermountain Capital Corp.,18 West 3rd S.,Salt Lake City, UT 84110 Utah Capital Corp.,3600 Market St.,Salt Lake City, UT 84119 Val Vista Investment, P.O. Box 619, Phoenix, AZ 85001 Sheffield Industries, Inc.,P.O. Box 24768, Los Angeles, CA 90024 Professional SBIC, 5979 W. Third St.,Los Angeles, CA 90036 First SBIC of California, P.O. Box 2097, Term. Annex, Los Angeles, CA 90054 City Capital Corp.,9255 Sundet Blvd.,Los Angeles, CA 90069 Havard SBIC, 33 E. Huntington Dr.,Arcadia, CA 91006 Fresno SBIC, 5300 N. Fresno St.,Fresno, CA 91006 Roe Financial Corp.,6100 Kester Ave.,Van Nuys, CA 91401 Downtown Investment Com. 2501 Judah St.,San Francisco, CA 94112 Central Investment Com.,2272 Market St.,San Francisco, CA 94114 Walker States SBIC, 320 Pershing Dr.,Oakland, CA 94611 Merchants Equity Com. 1024 J Street, Sacramento, CA 95814 First Farwest Capital Fund, Inc.,1800 S.W. First, Portland, OR 97034 Oregon SBIC, 661 High St.,N.E.,Salem, OR 97301 Model Capital Corp.,105 14th Ave.,Seattle, WA 98122 PERSONAL AND DEBT LOAN COMPANIES Following is a list of companies that give personal debt consolidation loans. some of these companies can offer you unsecured loans through the mail, with no investigations. You can even get a loan for more than $25,000 with your signature as collateral. American Express Credit Corp.,401 Hackensack Ave.,Hackensack, NJ 07601 Diners Club, Inc.,10 Columbus Circle, New York, NY 10019 General Electric Credit Corp.,570 Lexington Ave.,New York, NY 10022 Commercial Credit Corporation, 55 Madison Ave.,New York, NY 10022 C.I.T. Financial Coorporation, 650 Madison Ave.,New York, NY 10022 Westinghouse Credit Corp.,933 Penn Ave.,Pittsburgh, PA 15222 Allstate financial Corp.,P.O. Box 2303, Wilmington, DE 19899 Sears Roebuch Acceptance Corp.,P.O. Box 2028, Wilmington, DE 19899 Associates Financial Service Corp.,1030 East Jefferson Blvd.,South Bend, IN 26617 Credit-Thrift Financial Corp.,601 N.W. 2nd St.,Evansville, IN 47701 S.F.C., 1561 South Green River Rd.,Evansville, IN 47715 Chrysler financial Corp.,900 Tower Dr.,Southfield, MI 48098 Amoco Credit Corp.,P.O. Box 9014, Des Moines, IA 50306 Dial Finance, 418 Seventh Street, Des Moines, IA 50390 Postal Thrift Loans, P.O. Box 448, Sioux City, IA 51102 Honeywell Finance Corporation, Honeywell Plaza, Minneapolis, MN 55408 General Finance Corporation, 1301 Central Ave.,Evanston, IL 60201 Household Finance Corporation, 130 East Randolph Dr.,Chicago, IL 60601 Bankers Investment Co.,Bankers Investment Bldg.,Hutchinson, KS 67501 GAC Executive Service Corp.,2917 South Western Ave.,Oklahoma City, OK 73109 Allied Finance Corporation, P.O. Box 2998, Dallas, TX 75221 Western Industrial Bank, 2777 South Colorado Blvd.,Denver, CO 80202 Nationwide Finance Corporation, 1660 South Albion St.,Denver, CO 80222 Thomas Knight financial Assoc.,American Building, Ste 245, Salt Lake City, UT 84101 Whitney Harris financial Oppor.,6800 First Security Bldg.,.salt Lake City, UT 84101 Transamerica Financial Corp.,1150 South Olive Street, Los Angeles, CA 90015 Avco Colorado Industrial Bank, P.O. Box 31225, Los Angeles, CA 90031 Carte Blanche Corporation, 3460 Wilshire Blvd.,Los Angeles, CA 90054 Capital Finance Services, 1930 South Hill Street, Oceanside, CA 92054 Avco Financial Corporation, 620 Newport Center Dr.,Newport Beach, CA 95128 Beneficial Executive Ln.Ser.,2828 Stevens Creek Blvd.,San Jose, CA 95128 Northwest Acceptance Corporation, P.O. Box 14490, Portland, OR 97214 Work at Home - work at home jobs
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