We got a loan!
If you’ve been reading here from the beginning I’ve been catching up and chronicling the start of PHNX. I’m interrupting the chronological postings to announce we got a business loan today. I’m equal parts excited and terrified. I really wanted to grow PHNX without funding, but at this point it does not make sense from a cash flow perspective. I don’t take debt lightly, either personal or business, but in business especially cash is king and if we want to have flexibility to grow we need cash now. This loan will enable us to order a 2nd round of shorts and develop a new product - I’m not sharing what that product is yet, but I think all of the women will say AMEN! once we announce :)
This loan has not been without setbacks. I initially applied for funding at a large bank and was denied. Then, the bank reached out to me to ask me to apply again because there was an error and I was denied by mistake. Then I was denied again. I mean, talk about kicking me while I’m down! This was a several month process and I can laugh now, but in the moment it was honestly very discouraging. Knowing what I know now I should never have applied to a large bank. There is honestly no way they would have funded anyone needing less than $250k. Instead, I was able to secure funding through Community Works - a local organization that distributes SBA loans. For any entrepreneurs or aspiring entrepreneurs consider this your encouragement to go straight to your local bank or community organization. They were wonderful to work with and I feel so much better working with them. Plus, your local organization likely provides additional coaching and resources you wouldn’t find at a large bank.
It’s a big day for me and one that’s been a long time coming. I’m so excited to continue to grow this business and I will keep sharing more along the way. It’s easy to write about the good times, but I also want to be real about the hard times and when things don’t go to plan - which is often! Stay tuned for more updates. It’s sure to be a wild ride :)