Advice on either a grant or a loan
I know you have so many questions asked, but my mom and I are trying to start up our own catering business. I would really love to get some advice on either a grant or a loan. I don’t have a lot of money being a single mom but my credit is in the good range above 710. However, I do have debt. What do you suggest?
Having debt depends on your debt to income ratio (dti) and is not necessarily a deal breaker. The bank is just going to want to make sure you can repay it and that your dti isn’t too high. If you have any assets or collateral i.e. home equity, that can help.
Grants are rare, if at all available.
There are a lot of creative ways to bootstrap your business though–
-Friends and family
-Crowdfunding (might be ideal for you! Also check to see if there’s a “The Local Crowd” available in your area as they provide guidance and support for your local crowdfunded project)
– bootstrapping with a paycheck
– selling services i.e. childcare, consulting, dog walking, whatever you can offer
— selling items on Craigslist, Facebook marketplace, etc.
— setting up a Patreon page
— getting small catering gigs, get a deposit and use funds to do the gig then when you receive the balance, reinvest the money to grow it.
You just have to get creative. You can do this!!
I would check and see if there is a SBDC (Small business development center) near you. They can help you in building out a business plan, going over financials, and will be able to assist you in knowing which small business lenders to work with vs any grant options that may be available. They are a branch of the SBA and their counseling services are 100% free.