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What kinds of banks or institutions are best for taking out small business loans ?
I’m thinking like 250k
It depends on your needs (expansion or operation, long-term or short)) and qualifications as well as how long you’ve been in business; obviously, requirements vary. That said, banks tend to be more restrictive, as a whole, than online lenders (such as QuickBridge and OnDeck).
In other words, one’s idea of ‘best’ may not be a fit for you. Also, you need a specifically-outlined business plan for a loan rather than ‘I’m thinking like $250k’; else, no one will take you seriously.
I just recently bought a house dont have much equity in it , partners might as they believe in this much more than me
any other collateral the banks can use ?
Even that offer gets "sticky" as the bank will still have to deal with your 1st mortgage in the event of a default on the business loan.
Me: I'd never put up my house for a partnership!
I knew a guy with a 10 way partnership on a restaurant. What happened? 10 people didn't make any money! Restaurant closed after 5 years, sold the building everyone took a loss
Even if the place netted 1mm a year, thats 100K per partner/ $8300 a month. No way would I take that deal as too much can go wrong with 10 partners. Lets say it only netted 100K yr, then thats $830 a month.
Even that offer gets "sticky" as the bank will still have to deal with your 1st mortgage in the event of a default on the business loan.
Me: I'd never put up my house for a partnership!
I knew a guy with a 10 way partnership on a restaurant. What happened? 10 people didn't make any money! Restaurant closed after 5 years, sold the building everyone took a loss
Even if the place netted 1mm a year, thats 100K per partner/ $8300 a month. No way would I take that deal as too much can go wrong with 10 partners. Lets say it only netted 100K yr, then thats $830 a month.
agree
I wasn't planning on using my mortgage lender anyway
but product was designed and made by me so I invested some time and effort into it
Nobody is going to loan you money based on your investment of time and effort. A lender wants collateral. You are already in debt with a house. Would your debt/income ratio qualify for the personal guarantee?
Concrete biz plan, last three years tax returns and financial statements then schedule an appointment with a start up advisor. Chamber of Commerce is probably a good start to locate one.
Nobody is going to loan you money based on your investment of time and effort. A lender wants collateral. You are already in debt with a house. Would your debt/income ratio qualify for the personal guarantee?
Concrete biz plan, last three years tax returns and financial statements then schedule an appointment with a start up advisor. Chamber of Commerce is probably a good start to locate one.
Yes have an appt with SBA next wk
thanks
not sure how they will calculate debt/income but assets are 3 times more than price of house
not sure how they will calculate debt/income but assets are 3 times more than price of house
They will explain that to you. Looking at your other thread - how are your investers coming along? Can everyone afford to loose their portion?
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