Need Loan For Auto Detailing and Refinishing Facility.

[Pat@apexauto]

Hi Guys, my company Apex Auto is bascially looking for a grant or a loan of any sort. What we find more appealing is perhaps an Investor/Partner in the business. I see that the potential growth could be great because of our concepts. Won't get into that here, but if you have questions feel free to contact me via private message. So. Basically we would like a loan of $10,000 in order to pay for our start up. The money is for a year's rent. The place we are bent on having is only 600$ a month, and the owner pays all the utilities including water. The only thing I'd like to do with this loan is pay for the 1st year up front. Pay for advertising, wrap on two cars. Insurance. supplies (pressure washer, air compressor, air tools, etc.) we have no employees. basically two owners. most of the supplies have been bought other then the one's that i've mentioned here. I've got two companies that I do work for now, but it's hendering us because we don't have a facility. The other great thing about the location that we are seeking is that we are the only auto detailers in a shop community with over 15 car dealers that currently detail their own cars for sale. Please contact me with any questions or if you know of a way that we can receive funding. Located in georgia.

[Harold Mansfield]

I have a friend that does auto detailing and has a few dealerships as clients and he doesn't have a shop. His entire operation is mobile and he goes to the client. He has 3 trucks and his key employees take the other 2 home with them.
His home's garage is his shop where he stocks supplies and parks his equipment and where everyone stocks up, or his wife will take supplies out and meet them at a location when they are really busy.

I say this because $10,000 is not a lot of money and doesn't seem as if it would offer much return for an investor with 2 others that need to be paid. Between the 2 of you, that's only $5k a piece. Definitely doable for 2 dedicated people, even if it means a part time side job and getting a little creative with keeping your expenses down.

If you take away the year's rent, you are down to $2,800. $1400 a piece. If I were an investor I would wonder why 2 people couldn't come up with that with their own funds, personal loan, second mortgage, family, friends, pawn shop or any of a million ways to generate small amounts of cash in a pinch.

[Dan Furman]

If I were an investor I would wonder why 2 people couldn't come up with that with their own funds, personal loan, second mortgage, family, friends, pawn shop or any of a million ways to generate small amounts of cash in a pinch.

Yea, I don't see anyone loaning 10k here. Truthfully, this is an ideal situation for credit cards/etc.

[CloptonCapital]

Truthfully I think you should aim higher. 10k is nothing. Believe it or not if you put a good business proposal together and have reasonable credit it is likely easier to borrow 100k than 10k.

[yanni]

Even if you only need 10k, always ask for more. I agree with @cloptoncapital, it's easier to get a loan for 100k than 10k. If you absolutely need only 10k and are confident that you will be able to break even within one year, a credit card is the way to go. If you have good credit, you could apply for an interest free credit card with the way things are going right now.

[phanio]

I would have to disagree with those saying you should ask for more. If you can't cash flow (service) a loan for $100K - then don't ask for it. The only way you might find an investor is to get out in your local community and seek out other business owners or business professional who might loan or invest the $10K as a way of giving back to their community. Plus, you might be able to get one of the dealerships to sponsor you for that amount - then you can give them a discount on services in return.
As stated, most who only need that amount do so from personal savings, tapping friends and family or from personal credit cards.
You could also look into micro loans (up to $35K for new businesses with an average of about $13.5K). Or, peer-to-peer loans which are personal loans from people just like you and sometimes offer some of the lowest rates around.
But, I think your best bet is to get out and get more business - start earning an additional $600 plus a month and use those funds for your facility.

[tylerhutchinson]

I both agree and disagree. I would never ask for more then what you need. I would advice putting a "cushion" for unseen expenses. Maybe 10% of what you think you need. Before throwing a number out you will want to build a one year expense sheet of ALL expenses you may occur during the first year. This includes rent, utilities, parts, equipment, and so on. You also want to have a bit in the bank to cover for services and items before you get a customer.

I do not think you will find an investor for only 10k. Even at a 30% return rate that is only 3k profit for them (10k initial investment+ 3k in interest). A smart investor will not give that little of money to see that little profit back over the course of a year or so. Also, if you want in investor make sure you have a very detailed business plan as well as an foreseen expense report (described above). I have personally invested in start ups and I do not even consider giving money until I see the company inside and out to be able to form a firm opinion on if it will be profitable.

Here is my suggestion. instead of sinking 10k into a brick and mortar business (which 10k will not be enough for rent, advertisement, signs, ect) take the money, get your equipment and put a sign on your current vehicle as a mobile car detail. Not only do you save money by not paying rent, but you get the perks of using home expenses as tax write offs at end of year since it would be considered home based. Also, you should see an increased customer base. You can get business by advertising "we will detail your car while your at work" and simply drive to their place of business and detail their car. On top of that you can increase your fees since you can add driving and gas expenses and a "luxury fee" to it. I know personally I would rather call someone to do it and have it not take time out of my busy day. I have used mobile mechanics and windshield repair and LOVE it.

Just my opinion. Hope it helps.

[nealrm]

I would suggest NOT getting a loan. All that will do is put stress on your business to make payment. Start small. Do the work on site and don't rent. Purchase good quality but used tools. Once the business has proven itself, you can then easily cash flow the expansion.

[scottmcconnell71]

There are many benefits to obtaining a business loan, one being the fact that you can build, or rebuild, your credit. And there are companies available who are willing to provide funding in the 10k range.

Best regards,
Scott McConnell

[SBOwner]

My company offers a grand opening loan of up to $40,000.00 send me an email if you would like more information at kristie.hamilton@payscapeadvisors.com Basically you have to accept credit cards at your business and your payments come out of what you process each month