**By Margie Mullen Article
The mistake: Assuming that as a successful financial advisor with a very high credit score, I would not have trouble obtaining financing for my new business: making and selling a bike stand that requires kids to pedal their bikes in order to get the TV to work. …
What I did:“I really thought that as a successful business owner with a 25-year track record, having business credit that I have successfully used, having a very high FICO — I just assumed I wouldn’t have the same problems that other start-up businesses have. But I was mistaken. The banks that finance the Small Business Administration loans said that doesn’t matter. What matters is: Do you have experience in this business that you’re starting, and is it at least five years’ experience?
What I learned: I had to go the other route, which was tapping mainly relatives. People who want to start a business should know that they’re going to end up having to use their own money, their already existing credit, the equity in their house, or borrow from well-meaning friends and relatives. And they may have to issue shares to give a part of the business to these people who are willing to lend them the money.”