I need some options for raising capital, any ideas? Would i be able to get SBA funding for a truck if i registered a corp?

I know alot of you scoff at the thought of having a business plan, but i think im going to make one anyway.. However, without actually deciding on a truck, trailer, whether or not ill lease, etc. What's the best way to get semi accurate figures for the bank? (because they want to know this stuff)

I also need some input on what type of business to register for different tax purposes, also, is it possible to get my own authority while being leased on to someone else, to let it sit and get a 6 month history for the future?

And, is it possible to haul under someones authority and still my own?

Example: I lease to ATS (Which is currently who i'm looking at) and i head down to california.. ATS Doesn't have a load for me coming back out, but i have a broker friend that has plenty.. can i pick up my own load and use my authority to run back out of cali, back into a better area?

I have so many questions.. my head is spinning =P Thanks guys! Been doing tons of research, but it always seems to help when there is an open discussion about this stuff and i can gather multiple opinions at once, so i understand that alot of this has been covered, i've probably read it already, just looking for more food for my research.

Check BRoncRider's thread. he posted one he used.

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You can certainly apply for the SBA. I wouldn't hold your breath unless you've got something to put up as collateral on it and/or you've got military experience. That seems to be how Bronc got his. I was denied with no collateral, no military service, with a high credit score and basically no debt. I was denied to due to the length of time being in business. We were a start up company, so you know...

For your semi accurate figures, just use the high end. Say your torn between this 05 KW and a 03 Pete. Use the higher priced one. SBA's like it better when you ask for more money. For example, I don't think they will even consider you unless you ask for for than 30K.

I personally feel, as a start up company just file your DBA (FYI the bank will require you to have this if you want to open a business account) as sole proprietorship and run like that for awhile. I see no benefit when you are just starting out to incorporate. However, I'm sure you'll find others on here that will say incorporate, it's your call.

Yes, you can get your own authority while working for another company. You will need your $1 mil Liability of the Public (whatever) policy in effect and current. You won't have to carry any other insurance til you actually start using the operating authority.

I'm unsure on the running 2 authorities question. It may only work if 1- it's your own trailer not ATS's and 2- you have your own signs and numbers you can throw up on the door and completely cover ATS's. I would guess that ATS would not be thrilled and may have a policy in place to prohibit just that. This is just my guess on this, not factual information.

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I dont think you can, If it was the other way around you could... Run your authority and get loads from ATS, if they dry up, then you can go to broker buddy, or whoever else you want to. But to do that takes money, I know. I'm in the same boat, got plans but no money.....

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A million miles of barbed wire fences, I hear the moan of a westbound train. That purple sun is fading in my windshield, here comes the lonely night again......-Troy Olsen

Thanks guys keep the info coming.

One more question here, would it be feasable to ask for a 'line of credit' for emergencies? I wouldn't want to take additional money out on a loan, but i want something there "just in case" until i can build up my maintenance account... How I'm planning on doing this is by paying myself a fairly low salary for at least the first year or two, and letting the rest pile up in the bank.

It's dumb that they prefer you to own a home in this case, because you are probably more likely to succeed if you don't have overhead at the house with car payments, etc. You can run until you are successful without worrying about other burdens holding you back.. This is the main reason i want to jump into this now and get it out of the way, it's much easier to plan future expenses on current income than to try to force current income to meet with your current expenses.

Tankergirl, did you get your stuff figured out yet? I was thinking of trying to find a broker (even though i hate them) to try and find me an SBA loan.. I'm sure there has to be a financial company out there somewhere willing to loan someone the money.. with a solid business plan ofcourse.. Seems like this is going to take a while, though.. And i'm going to need to figure out a name for my DBA/Corp.. All the good ones are taken =(

Yes. Essentially that's what a lot of SBA's turn into, lines of credit. You'll want to put that on your business plan. They want to see it. You need x amount of money for purchases and start up costs, and x amount of money for working capital. You can ask for it in the form of a line of credit.



They like it because sometimes they'll want you to put your house up against the loan. NEVER do this. It also goes to show them you can make large installments. $500 a month for a car note is nothing compared to $1500 house note, which is nothing compared to $2500 payments on an SBA (or whatever). It also shows you're stable if you've lived there awhile, they know where to find you if they want to sort of thing.



You can name it whatever you wnat on your DBA. When you go to incorporate then it will need to be an unused name (in your state's registry, I believe). Example, you start Swift Transportation. It will always be Swift but when you incorporate you'll name it ABC Group. Then it will be ABC Group DBA Swift Transportation. You'll keep the names on your doors, checks, whatever as Swift.
Pfftt... as for us.... yes and no. We said to hell with the banks and SBA's. I felt like I was begging for money and they want everything and the rights to my 1st born son to even consider. We are saving up the cash on our own. That way when we get out there we only owe our equipment payments and not any loan payments. We should be out there before too long, we've got just about all we need.

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I appreciate the advice, and i wish you guys the best of luck.. I'm sure after reading your posts you'll do great out there.. Getting started is the hardest part!

LOL you are so right.

Good luck to you with the SBA, keep us informed on how it's going.

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eckz,

Are you prior/current military? If so, the SBA has a pilot program called the Patriot Express Pilot Loan Initiative. Its based of off the SBA Express Program. Collateral is required. The Initiative is to be evaluated Dec 2010 and a decison made as to whether or not to continue it.

As for the Business Plan.... I use Business Plan Pro v11.0 from Palo Alto Software. The software is very thorough. Another plus is the BP is printed out in the format that the SBA and lenders want to see. It is professional in appearance. I bought it direct from Palo Alto on EBAY. It also includes sample BP's from all sorts of industries to include Trucking. It is user friendly.

For additional research try the SCORE website. Just GOOGLE it. When I am not on this site researching I am on that site researching. There is so much information there it is easy to get overloaded. You can also request counseling through a SCORE office. Many a successful business person volunteers their time to mentor small business owner hopefuls in all industries.

R/

Frat

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US Navy Chief
"Navy Chief....Navy Pride"
"Destination: Excellence"
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Work, Work 24/7 if you have to and save, save, save. Eat beans and rice, do without everything you can and save. You will make much better business decisions spending money you earned than money you just borrowed.