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getting a loan for a website business

I have found that regardless of our sales and profitability history, getting a loan to grow an online business is impossible. The banks want a tangible asset like a building, etc. to attach their money to. We are too small for vc's interest.
We don't need to renovate or rebuild our retail location, but may be up for a renovation and expansion if we could swing a larger loan to help fund our online business. Would you advise going this strange round about route or suggest other options?

2 Responses

  • Feb 22, 2010

    Julie Rains

    I am wondering if you can use your building as collaterol without having to renovate but it sounds like you may have gone that route. Another idea is to identify what you need funds for and then match find funding for that particular need: for example, if you need to fund inventory, ask your vendors for higher credit limits; if you want to buy a snazzier computer system, look to vendors for a lease rather than purchase.

  • Feb 23, 2010

    Owner/President

    Do you have enough personal collateral to either personally guarantee such a loan, or can you take out a home equity loan? The home equity loan may be the easiest route if you have a good credit score and have equity in your house.

What do you think?

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