The Secret Of Raising Money

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The Secrets Of Raising Money



If in debt, you must devise some plan to get out of the red. You can
declare bankruptcy, but that will tarnish your credit and financial records.
An alternative is the "wage earner" plan, which allows you to meet
your debts methodically without bankruptcy. remember, creditors hate
bankruptcy because they may be left with no payment. To them, 20 percent of
what you owe is better than nothing at all. But if you can get on the
wage-earner plan, there is another solution.

Sit down with your creditors and negotiate a payment plan. Tell them
how much you can pay. believe me, they will settle for less than the actual
amount owed. For more information on negotiating with creditors, refer to the
section titled "Take Over An On-Going Business For Zero Down."


In 1938, federal law established the wage-earner plan, now administered
by the same branch of our judicial system that handles bankruptcy.

To take advantage of the plan, you must be a wage earner and most of
your income come from wages, regardless of how much you make. You can
discharge any amount of your debt under this law. Here's how it works:

1. Call the nearest U.S. District Court and find out the name of the
trustee who administers the wage-earner plan; and make an appointment to see

2. Bring to your appointment all relevant financial records, such as
payment books, contracts, etc.

3. The trustee will examines your finances and set up a plan by which
portion of your debts is paid over a three-year period.

4. You then make your monthly payments to the trustee who, in turn,
pays each of your creditors.


A possible side effect of the wage-earner plan is the reduction of much
of your debts, because a provision of your filing requires your creditors to
appear in court.

Statistics show that 40 percent of creditors fail to appear in
court--in this case, you owe only 60 percent of your creditors their claims.
In some cases, none of your creditors will appear. If this happens, all your
debts are wiped out, without the pain of bankruptcy. If some of your
creditors do appear in court, the court allows you to divide your payment
into smaller amounts to be paid over a three-year period. Once you file, you
will stop bill collectors, law suits, judgements, assignments, seized bank
accounts, and other actions against you.

Indeed, in many cases, your credit rating may improve because you have
made an honest effort to work with the lending parties to pay off your debts.

Your debt may be wiped out entirely if a creditor used deceptive trade
practices to induce your purchase, as defined by the Uniform Commercial Code.

You should also be aware that, that under the Homestead Act, your
residence may be exempted from levy to the extent determined by local law.
Check with a lawyer or your local courthouse for more details.

ESTABLISHING CREDIT When first establishing credit, there are several
things you should do:

1. Open a checking account at a bank. A checking account verifies that
you have some dealings in the financial world; mortgage banks will allow
almost certainly check how you've maintained it and, most importantly, your
average balance.

2. Open as many charge accounts as you can. If any company will make
you a loan, it is a department store, by means of a charge card--they know
how closely their business is tied to charging. Use the cards liberally,
making sure you will be able to pay off the accounts exactly according to the

3. Use a cosigner. This frequently used method allows someone with no
credit to get a loan relying on the good credit rating of someone else, say a
parent. Banks are willing to risk the loan because the cosigner is just as
liable for paying back the money as the true borrow.

5. Use a private loan company. These companies, such as Household
Finance and Beneficial Finance, are more willing than banks to take a risk
when lending money; for that risk, they charge slightly higher interest
rates. Borrow up to your limit; pay it back religiously.


If you have no credit, possession of a checking account is one of the
main factors weighed by bank lenders when deciding whether or not to give you

Write down all the details of every check you write. This practice can
be very valuable during tax time.

If some of your checking expenses are tax deductible, note that in your
check book. You will find duplicate checks very handy.

After writing a check and transferring the amount to the register, you
should write in the new balance of your checking account. If you do this, you
will always know how much money you have in your account. Double check that
amount of the check matches the amount you have transferred to the check
register. IF you carry a few check with you, don't forget to transfer the
amounts to your check register. Enter all your deposits in your check book as
soon as you make them.


You should reconcile your checking account as soon as you receive your
monthly statement. Keep your check in order, preferably by date. Compare each
check you wrote with the bank statement. Mark each check off as you go along.
Do the same with deposits.

Get a check file so you can file your checks by month. If you ever need
a cancelled check, you can find it easily. Subtract the bank charges from the
balance in your check book.

To reconcile your checking account, do the following: Subtract all the
check you have written that the bank has not deducted from your bank balance
(don't forget outstanding checks from the previous month). Add all the
deposits you have made that the bank has not credited to your account
balance. After you have finished this, your new balance should equal your new
check book balance. Some banks will reconcile your checking account for you
if you have trouble.

You should always leave a floating amount in your checking account.
Every time you go under that amount, deposit more money. Keep your checking
account in good order--it may determine whether or not you will be given


Your credit record lists anyone with whom you have had credit dealings.
The longer your credit has been extended and the larger amount you have been
allowed to charge, the better your credit rating will be.


The longer you are at a job and the higher you wages are, the higher
your credit rating will be. Occupations are also important. Stable
occupations improve credit ratings, as does more than 10 years employment.

Utility companies will usually grant you credit if you have worked for
the same employer for at least 18 months.


You should find out if there are errors on your credit bureau file and
correct them. A bad rating with the bureau can ruin your chances of getting


If you have accounts in good order, you will ensure a high rating.
Overdrawn checking accounts and unpaid credit card balances will hurt your

INCOME Your rating will improve, not because of what you make, but
because of what you bring home (net income).

AGE Generally, the older you are, the better risk you are. By law,
those older than 62 cannot be rated lower than those younger.


Usually, dependents do not improve your credit rating because they are
considered expenses. Your ability to support your dependents will influence
your credit rating.


Having the same address and phone number for several years show
stability, so the longer you have them, the better your credit rating.


If you own a car, especially a late model, your credit rating will
benefit. You will also benefit if you are paying for the car on instalments
and if you have always paid on time. But car payments may also hurt you
because they add to your expenses.


The more expenses, the lower your rating. A loan officer looks at how
much money you have left after you meet your monthly expenses. He looks for a
low-income-to-expenses ratio.


If you want to buy something on credit, the larger the down payment you
offer, the better your chances of success. The more you put down, the lower
risk you are to the lender.


If you want to establish credit at a fast, but sure pace, follow these

Open a savings account, and deposit money on a regular basis. Soon
after, open an interest-bearing checking account. Have no overdrafts.

Pay your rent and utility bills on time. To eliminate or reduce the
large deposit usually required by utilities, have your employer verify that
you have worked for him more than 18 months.

If you apply for credit and are turned down, find out why. By law, the
party that turned you down for credit must tell you why.

When you find out why you were refused, improve that aspect of your
credit history.

Buy things on lay-away plans and pay them off in a week or two. After
doing this a few times, apply for credit at the stores, and make sure the
credit officers know about your lay-aways. Apply for credit from all the
stores you know. If you do establish credit, make all payments early and
don't miss a single one. Make sure you can pay back all the debts you incur.


For this plan to work, you need to start with a least $1,000. Borrow
from friends if you have to. Go to a bank of your choice and deposit the
money in a savings account. Wait a few days for the account to be posted,
return to the bank and ask for a $1,000 loan, offering the money in your
savings account as collateral. Since your money is excellent collateral, the
bank will loan you the money without making a credit check.

Next, go to another bank and open a savings account by depositing the
$1,000 you just borrowed. return to the second bank a week later and ask for
a loan using your savings account money as collateral. repeat this process
with a third bank. Wait a few days, then open a checking account at a fourth bank.
Begin making payments on each of the three loans. A week later, make more
payments on your three loans until you have almost paid off all your

Any credit investigation will show you with three active bank loans, a
checking account and a paying history for all three loans. Once you have
established a good credit rating, you may apply for loans, credit cards and
other forms of credit.


It is your job to protect your credit. Make sure:

1. If your loan application is rejected, ask if the reason is your
credit report. If it is, get that report and correct any errors on it, no
matter what time and effort are required. When the corrections are made,
reapply for the loan.

2. If disaster strikes--you become ill or loose your job--and can't
make payments, tell your banker. Don't lie and hide.

3. Know the laws that protect you:

a) Fair Debt Collection Practices Act, which prohibits creditors from
using false or misleading threats or abuse and harassment. b) Fair Credit
Reporting Act, which allows you to get a copy of your credit report and
correct errors. c) Truth in Lending Act, which makes lenders detail exactly
how much the loan is going to cost you. d) equal Credit Opportunity Act,
which forbids lenders denying you credit because of your age, sex, race or
marital status.


If you establish credit using the above procedure, you should have no
trouble getting any credit card you want, but there are still a few guidelines
you should follow to ensure you have no difficulties:

1. Apply for department store cards first. Purchase something, and then
pay the balance off when it comes due.
2. Apply for gasoline credit cards using department store cards as
3. Apply for bank cards, such as Master card and Visa.
4. Apply for entertainment and travel cards, such as American Express and
Diner's Club.


1. Have a good reason for requesting the loan. The likelihood of you
repaying a loan for a trip to Europe is not as great as that of you repaying
a loan for home improvements, a business venture, a real estate purchase,
etc. Prove to the loan officer that your reason for requesting a loan is good
and that you are not a high risk.

2. Be honest. Be honest when the loan officer asks you about your
finances, but don't say more than you have to.

3. Don't get angry with the loan officer. He may say no today and yes

4. Be confident and optimistic at all times.

5. Agree with the loan officer on as many issues as you can. people
don't like to hear the word "no." If you must disagree, this sales
technique: "Yes, I understand what you're saying, but...."

6. Be calm and collected at all times. Don't be afraid of the loan officer.
You will be doing as much for his institution as he will be doing for you.
Being afraid will only make you nervous and jumpy.

7. Know as much as possible about the loan before you apply for it.
This will put the loan officer on the defensive.

8. Be well dressed and groomed for the interview.

9. Be open to any suggestions or criticism, and try to see the
situation from the loan officer's point of view.


If you are turned down for a loan, find out why--it's your right. Request
your TRW report, and be sure it is accurate. Correct any errors on it. By
studying your credit report, you should be able to find out why you were
refused. Work on your weaknesses, and try again for another loan. Don't give
up until you get a loan.

If you have done all you can to improve your credit rating, and are
still unable to obtain from your bank, consider these options:

1. A credit union loan--often they are easier to get than loans from a
bank, and the interest is sometimes lower.

2. A source other than your bank--often other lending institutions have
less rigid qualifications for loaning their money; for examples, Household
Finance and Beneficial Finance. Interest is usually higher, however.

3. A cosigner--often you will get a loan if someone with a good credit
rating cosigns your application.


I have put together a list of some of the best creative financing
techniques available. People have made a lot of money using these techniques,
and that's why companies charge $10 to $20 just to share them with you.

Raise $200,000 In 24 Hours With Only Your Signature As Collateral

Many people have opportunities that require quick cash, but most are
unable to capitalise because of a lack of ready money.

There is a simple procedure that allows you to generate quick cash in
24 hours. The process is easy and fast, but requires that you first make
necessary preparations and lay out the groundwork for the plan. Begin by
going to 10 banks and telling the loan officer at each that you want to
borrow $1,000 for 10 Days.

After paying back your loans, wait 30 days before going back to the
banks. This time, request a larger amount, depending on what you think the
bank will loan, say $5,000. If each bank approves a $5,000 loan, you raise
$50,000 the second time you collect from the banks.

Continue this step-by-step process. Each time you go to the bank, ask
for a larger loan and a longer pay back period. What you are doing is
establishing a millionaire's credit rating using the process of repetition.
That is, you are always paying back the money when it is due. Making your
payments on time, combined with the number of loans that you have taken out
and paid back, enables you to establish a very powerful credit rating and
good relations with lending institutions.

After using this procedure for about a year, you should be able to
borrow $20,00 from each bank on just your signature. Using 10 banks in this
plan, you will be able to borrow $200,000 on your signature in as little as
24 hours.


A variation of the previous plan enables you to maintain a constant
cash flow. By applying to twice as many banks, you may pay back loans with
loans you receive from other banks. However, wary of using such a method, but
don't forget that companies do this all the time. They issue bonds to pay off
debts, and when these bonds are due, they issue more bonds. Debt-renewal
systems are very common among investors.


You can borrow up to $50,00 and use for as long as you like. How? With
the use of overdraft protection, which is, in effect, a loan. It is money
that is transferred into your checking account when you overdraw.

Once you qualify, this protection is automatic, but there is usually a
predetermined overdraw limit set by your bank, and you usually have to pay
interest on the money you borrow. Once you have worked out a "credit
plan," it is not hard to get your application approved.

The first step of this system is to open 10 checking accounts at four
different banks. Apply for overdraft protection with a $5,000 limit at each
bank. It is important that you apply for overdraft protection at each bank
without the other banks knowing that you already have such accounts. Banks
don't want to overextend you. If they know that you have other accounts, they
may deny you accounts at their branches. You may think $5,000 is a high
limit, but it's not for a bank. Banks often have checking accounts with
overdraft limits of up to $25,000

Some banks may not give you a $5,000 limit at first, but don't let that
discourage you. Stay with the bank for a few months, then reapply for the
$5,000 limit.

Do you see how easily you can transform this overdraft protection into
$50,000 cash overnight with only your signature as collateral? You can raise
$50,00 by writing 10 checks for $5,00 each.


Banks usually require you to pay back 5 percent, or one-twentieth, of
the loaned amount every month. However, this rule is not always enforced.

If you keep your loan under the overdraft limit, the bank may not
require you to make principal or interest payments. Some banks require you to
make payments every month. How can you keep the money? Borrow money from
eight different banks, each with $5,000 overdraft limits, and you have
$40,000 to use.

Let's say that your loan payments total $2,200 per month. Use a loan
from a ninth bank to make the first two monthly payment. For the third
monthly payment, use the money from your other accounts to pay off the loan
from the ninth bank. Repeat this process, and you will be able to keep the
money indefinitely. This process works if the banks do not charge you
interest on the money you borrow. If they do charge you interest, you can
only keep the money for a limited time. In any case, it is very important to
have a good investment for the money you borrow.

MULTIPLY YOUR MONEY WITH A 'Compensating Account'

You can get a loan from a bank by depositing a "compensating
balance" into an account. In most cases, a compensating balance amounts
to about 20 percent of the loan it is insuring. You may be able to borrow up
to five times the amount you deposit into the account. Your ability to use
this process depends on how good your credit rating is. If you have a poor
credit rating, you may have to deposit a higher percentage of the loan.


Master card and Visa have a service that allows you to get a free loan
with their special check-writing service.

The check you write is simply billed against your credit card, and has
the effect of an instant loan. You may have a seen this type of check with
your regular statements.

The way to make this loan pay off is to find a bank that accepts this
type of special check with a 30-day grace period. To get an indefinite loan,
write the first special check and do whatever you want with the money. Then
write a second special check and deposit the money into your checking
account. Use this money to pay back the credit card company. In this way, you
may keep the money indefinitely.


In today's "credit World" virtually everyone has credit
cards. Millions of Americans carry as many as 30 credit cards, with credit
limits averaging about $1,000 per card. With just your credit cards, you can
get more than $15,000 in cash and merchandise. even hard-to-get credit cards,
like American Express and Carte Blanche are easy to get once you have cards
like Master card and Visa. American Express and Carte Blanche have limits as
high as $20,000. Combining these cards with cards like Visa and Master Card
can give you credit up to $50,000 for 60 days, with no interest.


You can use your department store cards to raise quick cash. Simply go
to the stores that have issued you cards and charge merchandise. A few days
later, return the merchandise for merchandise-credit slips instead of having
your account credited. These slips may be used for future purchases, and they
are as good as cash in those particular stores. Then cancel these credit
slips to your friends and neighbours for a 10-percent discount. Since this
money is to be used for an investment, make sure the investment will pay higher
than 10 percent. If you begin this plan right after your monthly billing
notice, you will have the use of the money for 60 days and pay no interest to
the department store.


In most states, banks are allowed to charge you only 1.5 percent on
unpaid balances of your credit card accounts. This comes out to 18 percent
per year, which is a high interest rate. Because these states consider them
loans, the banks can only charge you 1 percent interest per month. That's 12
percent per year. How can you use this to your advantage? Make purchases with
your credit cards, and pay off these same purchases with a cash advance. With
this method, you pay for the purchases about 30 days after you make them and
at a rate of only 1 percent per month. You will cut your credit expenses by
one-third using this method.


This method of raising capital requires that you place a classified ad
in the business opportunities section of your Sunday newspaper. Here are a
few examples: Will pay___ percent interest on small loan for a short period.
Sound collateral. Your name and phone number.

Advertise in the "Business Opportunities" or "Capital
Wanted" sections of the paper. If you live in a small town, put the ad
in a big-town newspaper.


You can get money you need by forming a corporation. Besides being easy
to form, there are many advantages. For instances, you can be authorised to
sell one million shares of stock at no par value when creating the charter
for the corporation.

Let me show you an example of how your corporation will work. First,
issue one million shares of stock once you are authorised to do so. Keep
300,000 shares for yourself and reserve another 300,000 for future sales to
the public. The remaining 400,000 shares should be issued for public sale at
about $1 per share. If you sell 100,000 shares, you will have raised $80,00
after deducting a 20 percent broker's fee.

In time, your stock may go up to $5 per share. Your stock that was
worth $300,000 will then be worth $1.5 million. You will have quadrupled the
worth of your stock. And this doesn't include the stock that you reserved for
future sale.

You may find this example hard to believe, but the truth is, people
just like you make it work. If you have a worthwhile venture, this may be
your best option.

I must point out one drawback of this method. You must go through the
United States Security Stock Commission in order to incorporate. For this you
will need legal council, which is expensive. However,many lawyers will accept
shares of stock in your corporation as payment for their service.


There is a way to sell and trade stock without going through the SEC
red tape: Price your stock at 10 cents per share and make the total selling
price of the corporation's stock less than $50,000.

These shares are known as penny stock. You may begin by issuing
100-share lots and distributing them to those you feel want to invest in your
venture. Before you know it, you will have raised thousands of dollars,
interest-free, which you will never have to pay back.


I Have spoken to many people who want to start their own businesses,
and I fully support their efforts.

I believe in learning from others, in not reinventing the wheel. If you
have had a lot of experience in a certain field, you should have no trouble
operating a business related to that field. But if you have little or no
experience in a business, you have two choices: work for a company to gain
experience in the field you want to enter; or buy an existing business.

To buy a business, you need money. This section will show you how to
buy an existing business inexpensively. Preferably you will know a great deal
about the business you are entering.


To get started, look for a business that is in deep trouble, one that
is almost bankrupt. Many such businesses may be acquired with little or no
down payment. They may be manufacturing businesses, service businesses, real
estate businesses, etc.

Why would someone offer a business for zero cash down? here's why:

1. The owner of a failing business wants to get out from under his
bills and headaches.

2. He believes the business is beyond saving.

3. Finding a buyer for a heavily indebted business is extremely

There are always plenty of cash-flow take-overs available, whatever the
state of the economy. These business offers are often advertised, but you
have to look for them. Search through business ads in newspaper classifieds
and trade magazines, check with local business brokers and with local real
estate agents who also handle business sales.


Once you find a suitable firm, learn all its details. For instance,
find out how much the business owes and to whom, the value of the inventory
and all machinery and the value of the building and the property itself.

Look for a company in which the inventory and assets are higher than
the debts. Also consider the sales income and expenses required to operate
the business profitably. Examine such things as gross sales, selling and
labour costs, taxes owed, etc. This information may be gathered from the
firm's account books, income tax returns or from an accountants' certified


Explain your belief to the owner that you can turn the business around
and make it profitable, but that it will take at least two years.

Here is a typical offer to make the owner of such a business:

Zero cash down
Pay all company debts
Promissory notes
No payments for two years

Be sure your lawyer draws up a proper sales agreement before you buy.
You should also make arrangements to pay the attorney's legal fees from the
business funds, not out of your own pocket.

If you find that the owner insists on a nominal down payment,, you may
use any of the capital-raising methods described earlier to come up with
cash. However, you must insist on paying the bulk of the price with
promissory notes.

You must also insist that payments do not begin for a year, preferably
two. You will need that much time to turn the business around and show a

Once you acquire the sick business, you must take certain steps to make
it profitable. The first step is to deal with the creditors. Here's what you

Set up an appointment with each creditor to discuss the firm's
indebtedness. Explain to each that you have just taken over the business, and
that you would like to pay off all the debts as soon as possible. Tell them
that the business has no cash at the moment, but that you hope to start
showing a profit in six months to a year. Your strategy is to convince the
creditors to accept a reduced settlement of the debt.

First, try to get a reduction of 30 to 70 percent of the total debt.
You may also insist that payments do not begin for at least one year. Your
third request will be for long-term repayment, 10 years if possible.

Once the creditors accept your offer, make it legal by having them sign
agreements. With this maneuver alone, you will have reduced your debt from 30
to 70 percent, lowered payments by getting the payoff time extended, and
received complete debt relief for the whole year.

Taking care of the business' debts helps substantially. The business is
then in a far better position to recover from its ailments, but don't stop
there. There are other things you can do to improve its financial standing,
such as:

1. Sell excess inventories: finished goods or raw materials.
2. sell obsolete production machinery
3. Sell more company stock
4. Sell a separate division of your company.
5. Split your company into separate firms and sell stock for both.
6. Make any cost cuts you can: reduce payroll, find cheaper supply sources,
eliminate waste, etc.
7. Eliminate products, services or accounts that are only marginally
8. Study how to increase sales and locate new markets.

As incredible as it may sound, there are many businesses saved by using
these methods. All too frequently, owners are completely unaware of the true
value of their businesses. In many cases, an owner has exhausted his
operating capital and credit through mismanagement. Your offer allows him to
recoup some of his investment, and it may be the only one he gets.


You may use a variation of the promissory-note method offering the
owner corporate stock as a down payment, or even as full payment if the owner
is desperate. Assuming you set up a corporation with 10 other investors, the
owner will be assured of a sales potential of 10 customers for his stock,
once the business gets going.


The proposal you submit for your loan will determine whether or not the
banker will give it to you. The following formula will show you how to apply
successfully for a loan.


On this page, include your name and address and the names and addresses
of any others who are applying jointly with you. This page goes on the front
of the loan request, and it should contain the title of your request.


This letter may be the most important part of your loan request, and it
will determine if you get the loan.

The letter must get right to the point and tell the loan officer
exactly what he has to know in one or two pages.

The letter should tell the officer:

1. Why you want the loan.
2. How much capital you want.
3. How you propose to pay back the loan.
4. Any personal information that may help you get the loan.


You may obtain a credit application form from any lending institution.


This form, similar to a resume, is very helpful to the lender. It
contains background information about yourself and all your personal
information, such as name, address, height, weight, marital status, birth
date, etc. It also includes information about your past four jobs, three
references and a complete record of education.


If you try to get a loan for a business venture, this part of your
proposal is one of the most important.

The function of the marketing plan is to show the lender what you will
do with the money loaned you and how you will pay it back. The marketing plan
proves to the lender that you will make a profit.

The following six steps should be taken when creating your marketing
plan. If you have trouble, contact your local SBA office for assistance.

1. Analyse Your Present Marketing Situation

In order to project your company's future achievements, you must know
where it stands at the present time. In this portion of your marketing plan,
analyse your company's financial resources, competitive strengths and
weaknesses, organisational set-up, market conditions, experience, management
capabilities, clientele, channels of distribution (how you will distribute
your product) and your competition.

2. Determine Your Marketing Objectives

This step provides guidance and direction for your company. Here, you
tell the lender exactly what you want your company to achieve. But remember
to be specific and make sure that the numbers can be measured, such as:
"Increase the market share of widgets 10 percent from January 1 to
December 31, 1984." You do not have to know these numbers precisely, but
you should make a rough estimate of what your company can achieve.

3. Assess Your Company's Capabilities

In this step, show the lender how you will use your resources to reach
your objectives. You must show that you have every resource necessary to
reach your objectives, except one: a certain amount of money. In this step,
explain past experiences and accomplishments that you, your company, or other
company officers have had that could aid the future of your firm.

Also mention anything favourable in Step 1 that may help you reach your
objectives, such as your clientele, receivable, equipment, etc.

4. Create A Marketing Strategy

In this step, show the lender your plan or strategy for meeting your
objectives. This may include continuation or revision of an existing
strategy, or be completely different strategy. A strategy is a complete plan
of how you will best use your resources to meet your objectives. List each
activity you will perform. It is also important to establish which duties or
activities will be delegated to which person.

5. Put Your Overall Plan On A Time Schedule

In this step, place the activities you have listed in the previous step
on a time schedule. List each activity and show how long it will take you to
complete. You should also show beginning and completion dates. Do this with
all your marketing activities. The lender not only sees what you plan to do,
but how long it will take you.

6. Control And Evaluate Your Plan

You should have a method of evaluating your process as you follow your
plan. You should be able to control all the proposed activities and make sure
they are on schedule. For examples, if your objective is to obtain 300
accounts within a 10-mile zone, your control activity will check that you
have done just that. The control activity will be a monthly record of the
number of accounts you have obtained within the designated 10-mile zone.

Financial Statements

Personal financial statements of all persons involved in the business
venture are important to the lender. Current, as well as projected financial
statements, should be included in the loan request. Projected financial
statements are statements that show how predicted sales will affect future
financial conditions. It is advisable to have an accountant help you prepare
your statements.

Statement Of Capital Expenses

This statement shows the lender exactly what you plan to do with the
money he loans you. You should itemise how each dollar he lends you will be


Having a professional, independent appraisal of the property is the
first requirement. If possible, include pictures of the property, as well as
maps showing its exact location.


Venture capital institutions will finance business investments. And
since they assume the risk, they ask for equity in your business. A
conventional source for a business loan takes your collateral if the business
fails and charges you interest on the loan. What makes venture capital source
different? Since they own part of your business, you don't have to pay them

Venture capital companies invest in companies that they feel will make
them money. They also specialise in certain industries or fields. You will
have to write them to find out where they prefer to place their money. These
companies have fluctuating funds. There are times when they can loan a lot of
money, and others when they don't have much to spare. Keep writing the same
venture capital companies in your field. You may approach them when they have
a glut of capital to loan out.

It is important that you submit a professional presentation to these
companies. Your chances of getting the funds will be much greater if you
present your case well. Look over the section on creating a successful loan
request. Follow the steps I outlined for you on your loan presentation. If
you do, you have a good chance getting the money you need.


The following companies asked to be listed in this book because they
expressed a desire to finance new or existing ventures. Write them for more

Explorer Fund, Inc.,28 State St.,Boston, MA 02109

State Street Bank Company, 225 Franklin St.,Boston, MA 02110

Paine Venture Fund, Box 73, Boston, MA 02110

Resources & Tech MGT Company, Box 100 Chestnut Hills, MA 02167

Gemini Associates, 234 Pearl St.,Ste One, Hartford, CT 06103

Hartford Comm. Capital Corp.,70 Farmington Ave.,Hartford, CT 06106

The Prospect Company, One Tower Eq.,Hartford, CT 06115

First Conn. S.B.I.C., 177 State St.,Bridgeport, CT 06604

Charter Oak Enter.,CBT Plaza, Darien, CT 06820

Paul Revere Investors, 1275 King St.,Greenwich, CT 06830

Anderson Invest. Com.,49 Locust St.,New Canaan, CT 06840

Wehr & Associates, 4 Forest Dr.,Westport, CT 06880

Western Group, Inc.,Box 1273, Weston, CT 06880

University Capital Corp.,107 Jefferson Ave.,Westfield, NJ 07090

Main Capital Investment Corp.,818 Main St.,Hackensack, NJ 07601

Wall Street Venture Capital, 2 Esterbrook Lane, Cherry Hill, NJ 08002

DSV Associates, 221 Nassau St.,Princeton, NJ 08540

Gunwyn Ventures, 14 Nassau St.,Princeton, NJ 08540

H.J. Morgan Company, 30 W. Prospect St.,East Brunswick, NJ 08816

Schroder Capital Corp.,One State Street, New York, NY 10004

Kalb Voorhis & Com.,27 Williams St.,New York, NY 10005

Loeb Rhodes & Company, 42 Wall Street, New York, NY 10005

American Capital Partners, 261 Madison Ave.,New York, NY 10016

BT Capital Corporation, 600 3rd Ave.,New York, NY 10016

Bancap Corporation, 420 Lexington Ave.,New York, NY 10017

Royal Business Funds, ^ East 43rd St.,New York, NY 10016

R.E. Hart & Com.,Inc.,380 Madison Ave.,New York, NY 10017

Bradford Ventures, LTD.,10 Rockfeller Plaza, #1010, New York, NY 10020

Winthrop Ventures, 527 Madison Ave.,New York, NY 10020

Whitcom Investment Company, 110 W 51st St.,New York, NY 10020

Time Incorporated, 1271 Avenue of the Americas, New York, NY 10020

Rockefeller Bros.,Inc.,30 Rockefeller Plaza, New York, NY 10020

The Franklin Corporation, ONe Rockefeller Plaza, New York, NY 10020

Exxon Enterprises, Inc.,1251 Ave. of the Amer. Rm 4448, New York, NY

Capital For Future, Inc.,635 Madison Ave.,New York, NY 10022

Technimetrics, Inc.,527 Madison Ave.,New York, NY 10022

Stewart Capital Corp.,485 Madison Ave.,New York, NY 10022

Stewart R. Mott Associates, 515 Madison Ave.,New York, NY 10022

Masco Associates, 437 Madison Ave.,New York, NY 10022

Jacobs Investment Com.,645 Fifth Ave.,New York, NY 10022

Llyod Capital Corporation, 186 Riverside Dr.,New York, NY 10024

Emerging Ventures International, 1350 6th Ave.,New York, NY 10027

R.W. Cross & Company, Inc.,1175 Park Ave.,New York, NY 10028

Midland Capital Corporation, 110 William St.,Rm 2605, New York, NY

Pioneer Ventures Com.,One Battery Park Plaza, Buffalo, NY 14202

Tait & Legge, 110 Allens Creek Rd.,Rochester, NY 14618

Hillman Company, 2000 Grant Bldg.,Pittsburg, PA 15219

Osher Capital Corp.,Wyncote House 101, Wyncote, PA 19095

Allied Capital Corp.,1625 Eye St.,N.W., Rm. 603, Washington, DC 20006

Columbia Ventures, Inc.,1701 Pennsylvania Ave.,N.W. Washington, DC

Greater Washington Investors, Inc.,1015 18th St.,N.W. Washington, DC

Dorset Associates, 135 E. Baltimore St.,Baltimore, MD 21202

Southern Investment Corp.,P.O. Box 6610 Newport News, VA 23606

Montag & Caldwell, Inc.,2901 First National Bank, Atlanta, GA 30303

Southeastern Capital Corporation, 380 Interstate North, Ste 475,
Atlanta, GA 30339

Urban Ventures, Inc.,825 S. Bayshore Blvd.,Miami, FL 33137

Gold Coast Capital Corporation, 3550 Biscayne Blvd.,Miami, FL 33137

North American Company, 111 E. Las Alas Blvd.,Fort Lauderdale, FL 33301

Business Research Company, P.O. Box 2137, Palm Beach, FL 33480

Investment Cap. Corp.,P.O. Box 2069, Montgomery, AL 36103

Standard Growth Capital, Box 10106, Knoxville, TN 37919

Financial Resources, Inc.,1909 Storick Bldg.,Memphis, TN 38103

Community Venture Co.,88 E. Broad St.,Columbus, OH 43215

Dycap, Inc.,88 E. Broad St.,Columbus, OH 43215

American Fletcher Mortgage Co.,606 Madison Ave.,Toledo, OH 43604

Morgenthaler Associates, P.O. Box 91052, Cleveland, OH 44101

Capital Funds Corp.,127 Public Square, Cleveland, OH 44114

Houston & Associate, Inc.,9 Hickory Hollow, Birmingham, MI 48010

Growth Equities, LTD.,2116 Financial Center, Des Moines, IA 50309

Wisconsin Capital Corp.,840 N. 3rd St.,Milwaukee, WI 53202

Commercial Capital Corp.,6001 N. 91st St.,Milwaukee, WI 53225

Eagle Investment Corp.,921 Marquette Ave.,Minneapolis, MN 55402

North Star Industries, 4570 W. 77th St.,minneapolis, MN 55435

Northland Capital Corp.,402 W. 1st Street, Duluth, MN 55802

Vanguard Venture Capital, 301 E. Main St.,Barrington, IL 60010

Venture Capital Corporation, 540 Frontage Rd.,Northfield, IL 60093

Advance Capital Growth Corp.,401 Madison St.,Maywood, IL 60153

William Blair & Co.,135 S. La Salle St.,Chicago, IL 60603

Stewart Capital Corp.,100 S. Wacker Dr.,Rm. 202, Chicago, IL 60606

Atlant/La Salle Capital Corp.,150 S. Wacker Dr.,Chicago, IL 60606

Urban Fund, Inc.,300 N. State St.,Chicago, IL 60610

First Capital Corp.,One First National Plaza, Chicago, IL 60607

Business Capital Corp.,1732 Canal St.,Ste 110, New Orleans, LA 70112

Brittany Corp.,4324 Republic Bank Tower, Dallas, TX 75201]

Venture Adviser, Inc.,2828 Forest Ave.,Dallas, TX 75215

Venture Investment Corp.,714 N. Valley Mills DR.,Waco, TX 76710

Telecom Corporation, Houston Natural Gas Bldg.,Houston, TX 77002

Enterprise Capital Corp.,4635 S.W. Freeway, Rm. 465, W Houston, TX

Ricky Hicks, 6448 Fannin St,.,Houston, TX 77030

Hixon Ventures Co.,341 Milam Bldg.,San Antonio, TX 78205

Riuss $ Company, Alamo National Bldg.,San Antonio, TX 78205

Cambridge Banking, 1711 Security Life Bldg.,Denver, CO 80202

Denver Coalition Vent.,1711 Pennsylvania, Denver, CO 80202

Venture Associates, 1020 15th St.,Denver, CO 80202

R.W. Halliday Associates, P.O. Box 8508, Boise, ID 83701

Dineh Cooperatives, P.O. Box 569, Chintle, AZ 86503

Capital Manag. Serv.,611 West 6th St.,Los Angeles, CA 90017

Union Venture Corp.,445 S. Figueroa ST.,Los Angeles, CA 90017

Manus, Incorporated, 900 Wilshire Blvd.,Los Angeles, CA 90036

Professional S.B.I.C., 5979 W. 73rd St.,Los Angeles, CA 90036

Goodman & Mautner, LTD.,5250 W. Century Blvd.,Rm 444, Los Angeles,
CA 90045

Brentwood Associates, 11661 San Vincente Blvd.,707, Los Angeles, CA

Source Capital, Inc.,1888 Century Park East, Los Angeles, CA 90067

Wilshire Cap. Corp.,1000 Santa Monica Blvd.,Los Angeles, CA 90067
Developers Equity Com., 9348 Santa Monica Blvd.,Beverly Hills, CA 90210

The Foothill Group, 9383 Wilshire Blvd.,Beverly Hills, CA 90211

Manning & Com.,29438 Quailwood Dr.,Rancho Palos Ver., CA 90274

H.M. Eldridge, P.O. Box 1983, La Jolla, CA 92037

Alison Promotions, 5834 Soledad Mt. Rd.,La Jolla, CA 92307

Capital City Equity, 811 N. Broadway, Ste 500, Santa Ana, CA 92701

Equity Capital Corp.,25 Cornelia DR.,Hillsborough, CA 94010

Kliener & Perkins, 3000 Sand Hill Rd.,Menlo Park, CA 94025

Menlo Investment Com.,3000 Sand Hill Rd.,Menlo Park, CA 94025

Osco Ventures, 3000 Sand Hill Rd.,Rm 105, Menlo Park, CA 94025

Oak Grove Ventures, 2200 Sand Hill Rd.,Rm 110, Menlo Park, CA 94025

H&R Investment Cap.Co.,801 American St.,San Carlos, CA 94070

General Pacific Inv.,321 10th St.,San Francisco, CA 94103

The Merchants Group, 300 Montgomery St.,Rm. 908, San Francisco, CA

Rock & Asso., 235 Montgomery St.,Rm. 1635, San Francisco, CA 94104

Opportunity Cap. Corp.,100 California St.,Ste 714, San Francisco, CA

Bruce A. Blinn & Ass.,415 Merchant St.,San Francisco, CA 94111

Asset Management Com.,1411 Edgewood Dr.,Palo Alto, CA 94301

Hoebich Venture Manag.,860 Hamilton Ave.,Palo Alto, CA 94301

McMorgan & Company, 1000 Welch Rd.,Palo Alto, CA 94304

P.M. Investment Com.,1000 Welch Rd.,Palo Alto, CA 94304

San Fran. Venture Cap, 31285 San Clemente, Hayward, CA 94544

R&D Capital Company, 2700 Merced St.,San Leandro, CA 94577

FMC Corporation, 1185 Coleman Ave.,Box 580, Santa Clara, CA 95052

Delta Invest. Com.,555 Capital Mall, Rm 640, Sacramento, CA 95814

Trail Capital Corp.,1200 Westlake Ave.,North, Seattle, WA 98109


Small business investment companies are privately owned by the
stockholding public. They have good flexibility when giving loans to
businesses, about 90 percent of which are eligible. Each SBIC has a federal
licence to operate under the SBIC Act of 1958. Each SBIC has their own rules
and regulations in regards to loaning. Here is a list of SBIC's. Write them
for information on their lending policies.

Massachusetts SBIC Inc.,75 Federal Street, Boston, MA 02110

Parker Corp.,265 Franklin St.,Boston, MA 02110

Northeast SBI Corp.,16 Cumber land St.,Boston, MA 02115

Boston Financial & equity, P.O. Box 68, Boston, MA 02215

Pilgrim Capital Corp.,842 A Beacon St.,Boston, MA 02215

Industrial Capital Corp.,111 Westminster St.,providence, RI 02903

New England Investments, 157 High St.,Portland, ME 04101

Manufacturers SBIC, 1488 Chapel St.,New Haven, CT 06510

Nutmeg Capital Corp.,35 Elm St.,New Haven, CT 96510

First Connecticut SBIC, 177 State Street, Bridgeport, CT 06603

All State Venture Capital Corp.,P.O. Box 442, Westport, CT 06603

Engle Investment Co.,35 Essex St.,Hackensack, NJ 07601

Main Capital Company, Inc.,818 Main St.,Hackensack, NJ 07601

CMNY Capital Company, Inc., 77 Water Street, New York, NY 10005

Creative Capital Corp.,214 Mercer St.,New York, NY 10012

Forum Equity Corporation, 214 Mercer St.,New York, NY 10012

New Mexico Capital Corp.,1420 Carlisle Ave.,N.E.,Albuquerque, NM 10017

Great Eastern SBIC, 230 Park Ave.,New York, NY 10017

Basic Capital Corp.,40 West 37th St.,New York, NY 10018

The Franklin Corp.,1410 Broadway, New York, NY 10018

Struthers Capital Corp.,630 Fifth Ave.,New York, NY 10020

Capital For Future, Inc.,635 Madison Ave.,New York, NY 10022

Conresco Corp.,444 Madison Ave.,Ste 3701, New York, NY 10022

Winifield Capital Corp.,237 Mamaroneck Ave.,White Plains, NY 10605

First Westchester Corp.,491 Main St.,New Rochelle, NY 10801

Lake Success Capital Corp.,100 Garden City Plaza, #516, Garden City, NY

Jefferson Capital Corp.,1228 Wantagh Ave.,Wantagh, NY 11793

Monticello Capital Corp.,34 Norh St.,Monticello, NY 12701

First Pittsburgh SBIC, 1919 Rick Bldg.,Pittsburgh, PA 15219

Sharon SBIC, 385 Shenango Ave.,Sharon, PA 16146

Fidelity America SBIC, 1520 Locust St.,Philadelphia, PA 19102

Delaware Valley SBIC, 1604 Walnut St.,Philadelphia, PA 19103

Philadelphia Ventures, Inc.,1712 Locust St.,Philadelphia, PA 19103

Capital Investment Com.,900 17th St.,N.W.,Washington, DC 20001

Housing Capital Corp.,1133 Fifteenth St.,N.W., Washington, DC 20015

Hudson Investment Co.,1150 17th St.,N.W., Washington, DC 20036

Mortgate Capital Corp.,1925 N. Lynn St.,Arlington, VA 22209

Tidewater SBIC, 300 Boush St.,Norfolk, VA 23510

Charleston Capital Corp.,19 Broad St.,Charleston, SC 29401

Kent Investment Company, 695 E. Wesley Rd.,N.E., Atlanta, GA 30324

Central Florida Investments, P.O. Box 13646, Orlando, FL 32809

First Miami SBIC, 420 Lincoln Rd.,Miami Beach, FL 33139

North Alabama SBIC, P.O. Box 430, Anniston, AL 36201

Financial Resources, Inc.,1909 Sterick Bldg.,Memphis, TN 38103

Financial Opportunities, Inc.,981 S. 3rd St.,Louisville, KY 40201

Associated Investment Com.,320 Associates Bldg.,South Bend, IN 46617

Indiana Capital Corp.,927 S. Harrison St.,Fort Wayne, IN 46802

Financial Investors, 185 Devonshire St.,Boston, MA 46802

Waterfield SBIC, Inc.,123 W. Berry St.,Fort Wayne, IN 46802

Hawaii Econ. Devel. Corp.,P.O. Box 1427 Dillingham Rd.,Honolulu, HI

J & M Investment Corp.,3044 W. Grand Blvd.,Detroit, MI 48202

Midwest SBIC, 1921 First Natl. Bank Bldg.,Detroit, MI 48226

Mor-America Capital Corp.,200 American Bldg.,Cedar Rapids, IA 52401

Northern States Capital, 330 E. Wilson St.,Madison, WI 53701

Chicago Community Ventures, Inc.,19 S. Lasalle St.,Ste 1114, Chicago,
IL 60603

Minnesota SBIC, P.O. Box 1227, Minneapolis, MN 55440

First Heartland Com. Inc.,405 8th Ave.,N.E., Aberdeen, SD 57401

Berkshire Capital, Inc.,405 8th Ave.,N.E., Aberdeen, SD 57401

Small Business Improvement Co.,P.O. Box 1175, Billings, MT 59103

Abbott Capital Corp.,120 S. La Salle St.,Chicago, IL 60603

Chicago Community Ventures, Inc.,19 S. Lasalle St.,Ste 1114, Chicago,
IL 60603

Vencap Fund, 10 S. La Salle St.,Chicago, IL 60603

Heizner Corp.,20 N. Wackee Dr.,Chicago, IL 60606

The Urban Fund, Inc.,1525 E. 53rd St.,Chicago, IL 60606

Combined Opportunities, Inc.,5050 N. Broadway, Chicago, IL 60640

Funded Investment, Inc.,6430 N. Central, Chicago, IL 60646

North Central Capital Corp.,203 Mulberry St.,Box 998, Rockford, IL

Century Capital Corp.,250 N. Water St.,Decatur, IL 62523

Atlas SBIC, 1808 Main St.,Kansas City, MO 64108

Midland Business Investments, 122 W. Myrtle St.,Independence, KS 67301

First Small Business Investment, 1614 S. Bayou Dr.,Golden Meadow, LA

Mid South Capital Corp.,312 Polk St.,Mansfield, LA 71052

Morris Capital Corp.,P.O. Box 20696, Oklahoma City, OK 73120

Investment Capital, Inc.,1301 Main St.,Duncan, OK 73533

First Dallas Capital, Corp.,P.O. Box 6031, Dallas, TX 75222

Central Texas SBIC, P.O. Box 829, Waco, TX 76703

SBIC of Houston, 640 West Bldg.,Houston, TX 77002

South Texas SBIC, 121 S. Main St.,Victoria, TX 77901

Colorado SBIC, Inc.,P.O. Box 5168, Denver, CO 80217

Intermountain Capital Corp.,18 West 3rd S.,Salt Lake City, UT 84110

Utah Capital Corp.,3600 Market St.,Salt Lake City, UT 84119

Val Vista Investment, P.O. Box 619, Phoenix, AZ 85001

Sheffield Industries, Inc.,P.O. Box 24768, Los Angeles, CA 90024

Professional SBIC, 5979 W. Third St.,Los Angeles, CA 90036

First SBIC of California, P.O. Box 2097, Term. Annex, Los Angeles, CA

City Capital Corp.,9255 Sundet Blvd.,Los Angeles, CA 90069

Havard SBIC, 33 E. Huntington Dr.,Arcadia, CA 91006

Fresno SBIC, 5300 N. Fresno St.,Fresno, CA 91006

Roe Financial Corp.,6100 Kester Ave.,Van Nuys, CA 91401

Downtown Investment Com. 2501 Judah St.,San Francisco, CA 94112

Central Investment Com.,2272 Market St.,San Francisco, CA 94114

Walker States SBIC, 320 Pershing Dr.,Oakland, CA 94611

Merchants Equity Com. 1024 J Street, Sacramento, CA 95814

First Farwest Capital Fund, Inc.,1800 S.W. First, Portland, OR 97034

Oregon SBIC, 661 High St.,N.E.,Salem, OR 97301

Model Capital Corp.,105 14th Ave.,Seattle, WA 98122


Following is a list of companies that give personal debt consolidation
loans. some of these companies can offer you unsecured loans through the
mail, with no investigations. You can even get a loan for more than $25,000
with your signature as collateral.

American Express Credit Corp.,401 Hackensack Ave.,Hackensack, NJ 07601

Diners Club, Inc.,10 Columbus Circle, New York, NY 10019

General Electric Credit Corp.,570 Lexington Ave.,New York, NY 10022

Commercial Credit Corporation, 55 Madison Ave.,New York, NY 10022

C.I.T. Financial Coorporation, 650 Madison Ave.,New York, NY 10022

Westinghouse Credit Corp.,933 Penn Ave.,Pittsburgh, PA 15222

Allstate financial Corp.,P.O. Box 2303, Wilmington, DE 19899

Sears Roebuch Acceptance Corp.,P.O. Box 2028, Wilmington, DE 19899

Associates Financial Service Corp.,1030 East Jefferson Blvd.,South
Bend, IN 26617

Credit-Thrift Financial Corp.,601 N.W. 2nd St.,Evansville, IN 47701

S.F.C., 1561 South Green River Rd.,Evansville, IN 47715

Chrysler financial Corp.,900 Tower Dr.,Southfield, MI 48098

Amoco Credit Corp.,P.O. Box 9014, Des Moines, IA 50306

Dial Finance, 418 Seventh Street, Des Moines, IA 50390

Postal Thrift Loans, P.O. Box 448, Sioux City, IA 51102

Honeywell Finance Corporation, Honeywell Plaza, Minneapolis, MN 55408

General Finance Corporation, 1301 Central Ave.,Evanston, IL 60201

Household Finance Corporation, 130 East Randolph Dr.,Chicago, IL 60601

Bankers Investment Co.,Bankers Investment Bldg.,Hutchinson, KS 67501

GAC Executive Service Corp.,2917 South Western Ave.,Oklahoma City, OK

Allied Finance Corporation, P.O. Box 2998, Dallas, TX 75221

Western Industrial Bank, 2777 South Colorado Blvd.,Denver, CO 80202

Nationwide Finance Corporation, 1660 South Albion St.,Denver, CO 80222

Thomas Knight financial Assoc.,American Building, Ste 245, Salt Lake
City, UT 84101

Whitney Harris financial Oppor.,6800 First Security Bldg.,.salt Lake
City, UT 84101

Transamerica Financial Corp.,1150 South Olive Street, Los Angeles, CA

Avco Colorado Industrial Bank, P.O. Box 31225, Los Angeles, CA 90031

Carte Blanche Corporation, 3460 Wilshire Blvd.,Los Angeles, CA 90054

Capital Finance Services, 1930 South Hill Street, Oceanside, CA 92054

Avco Financial Corporation, 620 Newport Center Dr.,Newport Beach, CA

Beneficial Executive Ln.Ser.,2828 Stevens Creek Blvd.,San Jose, CA

Northwest Acceptance Corporation, P.O. Box 14490, Portland, OR 97214

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