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07-25-2014, 01:58 PM #1
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- Jul 2014
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- 5
$400k for Agriculture Business
I have a client I'm working with. He's been in the agriculture business for 25 years. He created a business under his wife's name about 5 months ago. He's only generating about $6k in income under that business. He's looking to obtain about $400k to purchase Alfalfa seed to plant in Arizona and sell off in the Spring for approximately $2.5mil. He's willing to provide full documentation that's requested and needed to show that this project will generate the cash flow.
I know it's a long shot, but any ideas? Private Equity? Start-up capital? Project specific advance?
Thanks in advance!!
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07-25-2014, 02:17 PM #2
- Join Date
- Dec 2013
- Location
- Connecticut
- Posts
- 332
Collateral available? Outside of something secured I don't think you'll have much luck with that amount.
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07-25-2014, 02:19 PM #3
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- Jul 2014
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- 5
I hear you. I think he'd be willing to collateralize against another business.
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07-25-2014, 03:07 PM #4
- Join Date
- Dec 2013
- Location
- Connecticut
- Posts
- 332
What's the other business? If he can take the advance/loan against that company or cross collateralize, better odds.
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07-28-2014, 04:08 AM #5
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- Apr 2014
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- 781
But he prob won't come anywhere near the 400k he wants. This is near impossible, it's a startup idea and those likely fail.
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07-28-2014, 03:53 PM #6
- Join Date
- Mar 2014
- Location
- Ann Arbor, Michigan
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- 1,289
Can he get crop insurance to cover the growth risk and does he have the product pre-sold?
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07-28-2014, 06:42 PM #7
- Join Date
- Jul 2014
- Posts
- 5
He says he can get the crop insurance. I can ask about the product being pre-sold - I'm not sure off hand.
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08-04-2014, 03:04 PM #8
- Join Date
- Aug 2014
- Posts
- 1
Did you ever get this funded? I may be able to help.
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