Advice on unsecured loan

[AggroFish]

I'm just kind of throwing someting out there to get some ideas.
History: for the last year I've been working on a project that is a new device to be sold in the console video game segment. I have patents, copyrights, trademarks in place and I've finished the private placement memorandum as well as the business plan.

Thus far, everything has been funded out of pocket and a few personal lines of credit. I'm currently pitching a few people on debt financing (15%APR) so I can blue sky the offering. I have numerous clients that have invested with me in the past that would have no problem buying the stock once everything is compliant.

Revenues are zero, but there's a ton of upside... banks wont go unsecured, and dont qualify secured. It's a catch 22...I have clients who have invested 100s of thousands with me but I dont want to put anything in front of them until it's 100%, I dont know if that makes sense.

Any ideas? I heard about that prosper place from here, so figured it was worth a shot. Any ideas appreciated, I need ~min 30k

[Atlanta Andrew]

[ QUOTE ]
I'm currently pitching a few people on debt financing (15%APR) so I can blue sky the offering. I have numerous clients that have invested with me in the past that would have no problem buying the stock once everything is compliant.

[/ QUOTE ]

What do you mean by "compliant"? And which is it...are you trying to sell debt or equity? You mention them both in this paragraph, and it's confusing as to what your plan is for raising capital.

It seems to me that if you can't personally guarantee a loan, your only option will be to raise equity by pitching a business plan and ownership structure to your investors.

-Andrew

[AggroFish]

compliant = Blue sky'd + Attorney review of private placement memorandum.

I'm going to be selling stock in the private arena (506 Reg. D). However, in order to accomplish that, I need to secure additional funding. For that, I figured a convertible note would be more attractive during the company's early stages.

The $30,000 will go for legal fees, and keeping the doors open the 30-45 days it will take until substantially more money starts coming in from the sale of stock.

[maxtower]

Prosper has a 25k maximum I believe.

[Sniper]

Aggro,

How much are you looking to raise in the Private Placement?

Have you considered offering the lawyer equity in exchange for services?

What is your background?

ps. I'm willing to take a look at your BPlan

[AggroFish]

The private placement is for $1,000,000 to fully develop and market the product. I have no doubt that I can raise that amount. I've raised a lot of money for numerous "smoke and mirrors" type companies, not proud of losing tons of investors money in bad deals which I had no control over, just putting it out there that I can raise it.

My partner and I have a meeting tomorrow night with an attorney, doing exactly what you suggest. I'm confident we can pull that part off, however, most states still have filing fees that need to be paid.

Additionally, printing the business plan and memorandum runs ~$20 and another $30 for fed-ex, pre discounts, so printing and shipping a couple hundred PPMs gets expensive real quick.

Background: BA marketing, MBA, I've worked for a few years in the commercial finance (equipment leasing/SBA/factoring)arena starting off in sales and working my way up to Director of Marketing and then starting my own equipment leasing brokerage. I did small business consulting work (geroge may/IPA type) for a few years, and a whole lot of contract work building outbound call centers. Typical jack of all trades, master of none.

Appreciate the review offer, I may just hit you up.