What is the best way to obtain a small business loan for around $200k?
Sunday, August 22nd, 2010 at
2:47 pm
I want to purchase an auto parts store that I used to manage. Have several years experience in managing the place but have a opportunity to buy the place now. Personal credit history is not good but managing the store was.
Tagged with: $200k • Around • best • Business • loan • obtain • small
Filed under: Small Business Opportunity
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forget it, you would never be approved
To obtain a small business loan, you need great credit. That generally means that you have to prove that you don’t need the money. Then they’ll be happy to loan it to you.
You can get loans and even grants if you’re a woman or a minority. You can get more if you’re both. If you’re not either, consider bringing a woman or minority on board with you as co-owner.
If your credit score is any less than 700 than they will not even talk to you. At minimum you would have to write a detailed business plan (usually 25-30) pages for any business loan or grant. Also, you will probally have to put up your personal assets as a personal guarantee since it is your first business. If you can not manage your own finances a business is going to be ten times harder.
Try Family and friends, Owner Financing.
If the current owner has postive cash flow – That has to be used to secure the loan, also the assets of the business.
Not easy but start knocking on doors instead of hearing no, no, no from Yahoo answers.
Venture capital and/or private investors but they will take a large part of the business. See if you can work out financing with the person selling the place. They may take payments with a small deposit. Pay them interest and they may love the idea. If there is a will there is a way.