Posts Tagged ‘Building’
Best answer from question by C o n f u c i a n:
Answer by -
Okay, I love the rhetoric online and such, but yeah a credit union? Don’t waste your time. They usually have less money, and thus are stricter with their criteria. They’re worthless when it comes to getting loans (from what I’ve seen). I’d love you to be able to find someone who advocates using credit unions, to show you proof of all of the loans and great products they got from them. Yeah, I’ll wait.
So, with that said…
- It doesn’t matter if your father owns the building, YOU don’t own it, and YOU still are looking to borrow $ 150k. Since this is a start-up business, the bank will want to see you contribute 30% towards the $ 150k. That is $ 45k, and yes the figure is now 30%. PERIOD, unless you’re starting a service business (law firm, doctors office, etc).
- How good is good credit? You have long history? That’s also the most important thing.
- Last IMPORTANT factor is do you have a source of repayment? That can be a job outside of this proposed business, collateral, etc. The bank will want to see this.
The business plan and other stuff is somewhat important, they will want to see it, but honestly they don’t care. Also, no matter what you hear, the SBA is NOT a lender. It’s basically insurance for the bank, but the bank is still the one doing the lending, so yeah, don’t waste your time with “Go to a SBA seminar” and all of that other crap people who NEVER got a loan in their life like to say.
