Can You Use a Logbook Loan to Fund Your Start-Up?
That’s an interesting question for start-up founders and it’s also interesting to note just how many start-ups have been founded through unorthodox means.
Here are three to derive inspiration from … or not. It might be safer that you don’t!
BloomNation
Farbod Shoraka and two friends, David Daneshgar and Gregg Weisstein, used Daneshgar’s winnings at the 2011 World Series of Poker, $27,000, to fund their start-up.
CityRewardsNetwork
David Moore presold his service to sixty customers for $1,000 each, but he also did something you’re advised against; he applied for eight credit cards simultaneously. “I had to be quicker than the reporting system so the inquiries didn’t show on my credit report.”
PracticeFusion
“I was broadsided by a car while riding my Ducati through an intersection in San Francisco,” says CEO Ryan Howard. The money from the settlement money was used to keep what was proving to be an unsustainable start-up going, one that’s now immensely profitable.
Whilst these are inspiring stories, bear in mind there are many ways to fund a start-up business, many of which don’t require collateral at all, and for that reason, not to mention the fact that there’s always the chance that an unsuccessful start-up endeavour could see its founders sleeping in their cars, it’s best to explore the options available to you before you apply for a logbook loan.
Don’t quit your day job … yet
One of the best ways to fund your start-up, and incidentally one of the best ways to help you raise start-up capital by applying for loans like logbook loans and personal loans, is to keep working, i.e. don’t quit your day job.
As long as you’re working you’ll still have an income and although you won’t have as much time to focus upon your start-up venture, you will, however, find that your chances of funding your start-up venture by applying for loans and finance is much better than when you’re unemployed, which is generally what start-up founders are until things start going well.
Enter a contest
Sure, it sounds laughable but the prize money offered by organisations and philanthropists to encourage start-up innovation is anything but a joke, take the Amazon Web Services Start-Up Challenge for example. This contest boasts an annual reward of $50,000 plus another $50,000 in AWS credits each year to businesses.
Many major universities also offer outstanding reward money for start-up innovation with world-renowned MIT offering prize money in excess of $350,000 annually for accelerate, launch and pitch contests.
That’s something worth competing for.
Crowdfunding
As a start-up founder you’ll most certainly be aware of crowdfunding websites like Kickstarter and Indiegogo, the big names in crowdfunding at the present point in time.
Like the contests discussed above, competition is rife and it suffices to say that the vast majority of start-ups trying to appeal to conscientious consumers go unfunded. However, business is all about competing and getting your name and ideas out there so you won’t be wasting your time at all provided that you learn something in the process.
Loans – Secured and unsecured
At last, a more conventional approach! Loans might be a more conventional approach but it suffices to say that you stand a better chance of securing the start-up capital you require by applying for a logbook loan at carcashpoint.com, where you use your car as collateral, or an unsecured loan, where you needn’t provide any collateral at all.
If you’re going to apply for a logbook or personal loan to fund your start-up, consider the advice given earlier – don’t quit your day job – it makes all the difference.
About the Author:
Discover a quick and easy way to get logbook loans at Carcashpoint.com, a lending company that provides hassle-free solutions to people’s financial needs.
