My next big step is to get the bags into retail stores. But there’s a catch: If a department store (Nordstrom’s…are you listening?!) places an order they don’t pay for it until the order is in their warehouse. Nice.
I have to figure out how to pay for the order to be manufactured and then shipped across the ocean before I ever get a cent. For you fellow Shark Tank viewers, this is why people in the tank are always saying “I have orders I can’t fulfill!” To avoid this problem, I’m going to need some kind of capital.
On Tuesday morning my husband and I went to the bank to talk about a loan. We bank with SunTrust for everything. They have our checking, savings, personal and my business accounts. They also have our mortgage and my husband’s business uses them. They are a regional bank – see map below for locations – and we really like the personal touch. My local branch even called me last week to see how I was doing!
During the meeting the bankers suggested we apply for a line of credit. This would be ideal because you don’t start paying interest on the capital until you use it. With a loan you start paying the moment you get the money whether you are using it or not. The rate on the line of credit is prime plus one or two percent.
If we don’t get the line of credit approved, we’ll apply for a loan. I’m also meeting with some private investors in Charleston on Friday. The drawback to a private investor is the interest rate is higher. The upside is you often get an advisor which you don’t with a bank loan.
Among all the options I’m confident I’ll figure something out. In other words, come hell or high water, I’m fulfilling those retail orders when they come in! OK, Nordstrom? I’m ready for you!
Now you’d think the most nerve wracking part of a bank meeting is asking for money. But it wasn’t. On Monday I had a doctor’s appointment where my OB checked to see how far along I was. With 4 weeks left to go I was already dilated and a non-stress test indicated I was having slight contractions. My doctor said “Pack a bag.”
Um….what?! There was a chance I could go early? After being two weeks late with my daughter the thought I could be early with with this PLANNED c-section never crossed my mind. While I was going to the bank, all I could think was I hoped my water didn’t break in the office. What a scene!
Of course, it didn’t. I’m still pregnant and waiting to see if I will go early. Either way we’ll figure it out. In the meantime, I have a mountain of paperwork to fill out for the bank. I’ll keep you posted on progress – on both fronts.