| Business Loan Advice Needed |
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jorgeus
New Member
Cash: $ 0.65
Posts: 3
Joined: 21 Feb 2007
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| Business Loan Advice Needed |
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My brother and I are looking at going into business together. We are looking at starting a business in a territory where no business like it exists. The business has a proven model although it is not a franchise as such.
The business in total requires $400,000. This is to open the doors and have about $40,000 working capital.
We have about $40,000 each to contibute which means we need to borrow roughly $160,000 each.
Obviously we will ultimately need to speak to an accountant and the bank. I was hoping to get an idea here firs off as to the likelyhood of getting funding.
I will have $60,000 after selling my home and paying back the loan. I want to keep $20,000 for living and contribute $40,000 to the business.
We wont have security but we will have an attractive business plan.
How do the banks look at this kind of situation? Are there better places to visit other than the banks?
Are there much better alternatives than ANZ's 9.9% business loan rate for example?
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Wed Feb 21, 2007 11:05 am |
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gary
New Member
Cash: $ 0.70
Posts: 3
Joined: 22 Feb 2007
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| Business Loan Advice Needed |
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Banks will not lend to you unless you have security. You can try any private finance providers. I’ve heard that Meridian Finance is very fast loan provider. Contact them at there site meridianlendersonline.com There are full chances that you will get your loan with few little formalities.
Otherwise For banks You’ll need to get security if you want a loan from them unless you can approach a venture capital funding person, which may be difficult for you.
I can only suggest that you get a partner in who can give you some security for the loan in return for a share of the pie.
Last edited by gary on Wed Nov 11, 2009 4:00 pm; edited 1 time in total |
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Thu Feb 22, 2007 6:29 am |
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No-Brainer
Senior Member
Cash: $ 83.45
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Location: Oregon USA
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The simple logic of this is that people who are in the business of lending money want to know if you fail, where their money will come back from. They have no concern for your business, only the profit from their loan and what happens if you default.
Years ago when I started my business I borrowed on my home and you can bet they would have no compassion if I didn't produce, I would have been living in the street.
The other option is to offer much larger profits to the lender and if some think your chances are high enough to offset the risk, you may get the load. The bast place to try is family and friends, but you better be pretty sure it will pay off or you will have long term problems.
Just some thoghts to consider.
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Sun Jun 03, 2007 2:38 pm |
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dstern
Contributing Member
Cash: $ 6.60
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Joined: 18 Aug 2007
Location: UK
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if the business has any tangible goods e.g. premises, equipment, you may put them up as collateral. that would make the banks more secure..
an alternative is to look for an investor, they'd invest in return for a share of the business.
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Sat Sep 08, 2007 7:31 pm |
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