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I noticed an area that really needs another gas station. I thougtht of the idea when I was standing in a long line at the 1 and only gas station in this area. All 4 registers were in operation and the lines were still about 5 people deep.
My credit sucks and I don’t have anything to use as collateral, but I think this is a slam dunk. How can I get start up capital?

Some banks extend what they call "small business lines of credit" often through credit cards. Those are easier to get and can be based on your credit history alone. They typically are up to $100,000.

For example, Wachovia’s has various business lines of credits http://www.wachovia.com/small_biz/page/0,,446_612_1399,00.html Their business line of credit can even be approved overnight,

However, if you’re applying for a loan and if it is a big amount, banks and even the SBA http://www.sba.gov/financing may consider other factors aside from your business credit:

– A business plan explaining what the business is

– Your background and experience in the business — in my experience, this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don’t have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you

– Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application

– Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you

– Condition or terms of loans. Banks would want to know three important things: "How much money are you requesting? What will it be used for? and For how long will it be needed?" Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail.

Unfortunately, if your "credit sucks" and you don’t have anything to use as collateral, your option to get the amount of money you need for a gas station is limited from banks and even the SBA. If you are talking about a small business loan from financial institutions, you stand very little chance of getting a loan without any collateral. Collateral can be personal and business assets such as house, receivables, stocks and bonds, furniture and fixtures, among others — that can be sold to pay back the loan.

Collateral provide banks with the assurance that they can get their money (or at least parts of it) back, even if you cannot pay. Even SBA-guaranteed loans as well as micro loan programs require some form of collateral to secure a loan.

If you do not have collateral, you will need to have a co-signer who has collateral and can pledge to cover your loan in case you default on payment.

Aside from banks I suggest you consider microloan providers. They typically fund up to $30K Read about the SBA Microloan Program http://www.sba.gov/financing/sbaloan/microloans.html and you can find SBA Accredited Microloan Providers here http://www.powerhomebiz.com/vol145/microloanproviders.htm

Other sources of funds:

Your Credit Card

Using Credit Cards to Finance Your Startup
http://www.entrepreneur.com/article/0,4621,290366,00.html
Credit Where Credit Is Due: Using Plastic to Finance Your Start-Up http://www.inc.com/articles/1999/08/16625.html

Your Family Members and Friends

Accepting Start-Up Capital from a Family Member: Good or Bad?
http://www.powerhomebiz.com/blog/2006/08/accepting-start-up-capital-from-family.html
Borrowing Startup Funds From Friends & Family http://www.entrepreneur.com/Your_Business/YB_Node/0,4507,159,00.html