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cdn2wheeler · 09-24-2007, 10:19 PM

Paeng, your story rings so very familiar.

First of all, let me give you a little background of who I am: I've been involved in personal and professional finance for decades, working at banks and large institutions.

When making a loan or investment decision, there are a number of things that are taken into account (no pun intended):

Credit history
Zeal to be in the business
A solid, practical and reasonable business plan
Other financing arrangements.

From what I read here, you've got one out of four going for you; that is, the zeal and "fire in the belly" and it's clear that you love what you do.

That said, it's not enough. Yes, you have to enjoy your work but you can't base financial decisions on things like, "I know in my heart that the business will pick up very soon" and "He is quite a nice guy" and "My other partner is also a nice guy" and "people i have met loves our work, and promised that theyll help out."

So here's some practical, rubber-hit-the-road advice, in order of importance:

Talk to your banker. Tell them exactly what you've told us. Contrary to popular belief, bankers are actually human (well, most of them, anyway) and if they can make arrangements to help you get over this hump, they probably will;
Start generating some income outside of this business. It may mean taking another job or something of the sort, but reality is that cash flow is king;
I'm sure your colleagues are all very good people and nice and whatnot. So, they won't mind it at all if you have a look at their business plan so you can see for yourself what their plans are for the future and how well their previous projections have stacked up against reality;
Same with the books. If they want you as an investor, you've got the right to see the balance sheet. Study it hard
If they refuse to show you either the business plan or the balance sheet, then my suggestion would be to cut your losses and move on. That doesn't make them bad people and it doesn't make them the enemy, it just means that you're not in a position right now to invest further time/money because of your current situation.

Hope this hslps. If you need further info, PM me and maybe I can help. No charge.

09-24-2007, 10:19 PM	#3 (permalink)
cdn2wheeler Senior Member Join Date: Sep 2007 Posts: 1,016	Paeng, your story rings so very familiar. First of all, let me give you a little background of who I am: I've been involved in personal and professional finance for decades, working at banks and large institutions. When making a loan or investment decision, there are a number of things that are taken into account (no pun intended): Credit history Zeal to be in the business A solid, practical and reasonable business plan Other financing arrangements. From what I read here, you've got one out of four going for you; that is, the zeal and "fire in the belly" and it's clear that you love what you do. That said, it's not enough. Yes, you have to enjoy your work but you can't base financial decisions on things like, "I know in my heart that the business will pick up very soon" and "He is quite a nice guy" and "My other partner is also a nice guy" and "people i have met loves our work, and promised that theyll help out." So here's some practical, rubber-hit-the-road advice, in order of importance: Talk to your banker. Tell them exactly what you've told us. Contrary to popular belief, bankers are actually human (well, most of them, anyway) and if they can make arrangements to help you get over this hump, they probably will; Start generating some income outside of this business. It may mean taking another job or something of the sort, but reality is that cash flow is king; I'm sure your colleagues are all very good people and nice and whatnot. So, they won't mind it at all if you have a look at their business plan so you can see for yourself what their plans are for the future and how well their previous projections have stacked up against reality; Same with the books. If they want you as an investor, you've got the right to see the balance sheet. Study it hard If they refuse to show you either the business plan or the balance sheet, then my suggestion would be to cut your losses and move on. That doesn't make them bad people and it doesn't make them the enemy, it just means that you're not in a position right now to invest further time/money because of your current situation. Hope this hslps. If you need further info, PM me and maybe I can help. No charge.