Acquiring finance after the recession

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Hi! I;m Barry and used to have a construction business until the recession took it away. I am sure there is many more people like me who lost it all, including the jobs that go with it, but we have to somehow get up and running again.

Problem: What can one do to get finance from a financial institution for a new venture? Here's the bad news: Without at least 80% (and mostly 100%) security for the loan, ABSOLUTELY NOTHING!! I have an business plan rated by all banks I applied at as "EXCELLENT". Loan required only R200 000 - R250 000, gross profit estimated around R1.3 mil in the first year, but "Sorry, we can't help you." 20 permanent jobs in 12 months, more to come, good profit, excellent business plan, cheap to run, excellent profit prospects, what more would they need? IDC, Shuttleworth Foundation, Khula, a wheel barrow full of others: NO GO.

The most of them start at R1.0 mil in loans so I am too cheap for them, but I am convinced that the security question will still remain no matter what!

I always held the belief that commercial banks are more of a liability to small business than an asset. When you have money (like I did for 20 years), they love you. They cannot do enough marketing to get a share of yours, be it insurance, credit cards etc. But where are they when you need them? Looking after shareholders interests only and stuff you "small man"!

I started to advertise for a private investor or investors to try to fund this thing. My money will go under the mattress instead of into the bank too. That way I can cut out the bank as a liability and not have to pay the costs associated with them. A recent report in the papers stated that about R12 BILLION is stashed under mattresses in South Africa! I am apparently not the only one who feels about banks the way I do!

If anyone has an idea as to what will work and what not, glad to hear from you!

Barry.

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