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Getting a small business loan
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I’m interested in purchasing a company, after the initial purchase and upgrades it will likely run about $250k. This is still in the early phases of my analysis but the company says they are profitable but I haven’t seen figures to show me to what degree.
Assuming that checks out and they are profitable, how hard is it to get a business loan of this size? I’m a 24M with a bachelors in finance. I don’t have any debt but not a lot of assets either. I’ve got about $6k in a 401k account currently and my credit score is around 750. I’m new to the game and don’t have a lot of knowledge on how obtaining a loan works, believe it or not we didn’t discuss it in college.
Top Comment:
Business loans are never "easy" to get. Whether it's for 10k or 100k. At 24 yrs of age, no debt/no credit history, no Collateral, no industry (whatever type of business that is) experience, etc. The likelihood of getting approved for a $250k business loan is almost zero.
Small Business Loan
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So I’ve been operating full time under the table for almost a year now, I’ve been barely getting by but I told myself if I could make it a year I’d try and get a loan. Does anyone have the best possible route/steps to acquiring a small loan to get the tools I need to really start keeping up with my work load and not losing work from taking to long or charging way too much. Like 30k is what I need for the tools. I have the customers just spend more time stressing on how to turn chicken shit to chicken salad than I do working these days
Top Comment:
Yea for 30k the banks going to want financials. Look for a personal loan that allows you to fund a business.
Best small business loan
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Hi! I’m looking to open a store for my small business very soon. We already found a spot and I’m ready to pull the trigger. I’m looking to take out a small business loan, only need around $10,000. (I wouldn’t even say need, I have savings but I don’t want to take a chunk out all at once) Which is the best place to apply for one? I’ve been googling online and I’ve been matched with some loans, but how do I find out what the interest rate is without applying for it? Does anyone know what the interest rate is around right now? Idk if it helps but my credit score is around 830s. Any and all advice welcomed, thanks!
Top Comment:
SBA 7a Lender here, look towards an SBA Express loan, if your credit is above 700 this would be the way to go, it is transparent, governed by the SBA and not sketchy. Do yourself a favor to and start building business credit when you open your business by getting a business credit card and using it wisely. This way when you need a bigger loan your combined business and personal credit will support it. (see link below)
If you need help being pointed to a reputable SBA Express lender let me know. I don't make these loans but would be happy to point you to someone who can. Again because they are governed by the SBA you can have some comfort in knowing they are not meant to take advantage of you but rather support your success. Just DM me, I don't want to post their contact information. I hope this helps and good luck.
Small business loans ?
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I want to start a business buying dead stock jewelry and refurbishing it. I really love dead stock and I enjoy turning old things into their new form. I need seed money however. I applied for a small business loan from the us business website and I got contacted by mainly scammy type people like Newity. Is there a better source for small business seed money?
Top Comment:
Only 2% of SBA loans are approved. You should get your business set up properly at the 3 business credit bureaus. (Experian Business, Equifax Business, and D&B). Once it’s set up correctly with a robust credit file, your business will get approved for loan and lines of business credit without needing your SSN as a guarantor. Only the EIN. It’s a process that takes time, it’s not overnight because it’s done right. It’s a process that you are involved in. This is a white glove concierge service. You’re guaranteed at least $50k in business credit at the end of the process. You’re assigned a credit analyst, fractional CFO and access to business valuation and cash flow mapping tools. My LLC is already in the final stages where I can get corporate credit cards (just on the business, no personal guarantee).
If you want more info send me a DM with your email. 👍
Business loan options? I’m drowning with the interest
Main Post: Business loan options? I’m drowning with the interest
Top Comment:
We’re in the same boat. $500k balance on our SBA backed loan at 11.5%. We started at 6.5% when we got the loan 5 years ago. After almost a year at this high rate we’re barely surviving as a business. Our bank said they can’t do anything for us. What do they care if we fail and default? The SBA will just pay them off. So I’m in the process of refinancing through a local credit union. They’re offering 7.5% which isn’t awesome but a hell of a lot better than where we’re at now and it’s a fixed rate. When we pay off the current loan at the current bank we can drop the SBA and their added 2% they tack on to every payment. Will be such a relief when it goes through. So I’d suggest trying a local credit union and seeing what they can do for you. I’m sorry you’re struggling too, best of luck to you!
Is there any way I can get a business loan with 0 assets?
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I run a video production company with my business partner. We have some projects coming up that require travel and expenses that we could use a loan for until we get paid. We don't really have any significant assets aside from our equipment which is roughly worth 30k max. We both work remotely from home.
I have excellent credit while my biz partner has ehhhhhh less than stellar credit. Is there any way we can get a business loan? If not, how can we start building credit for the business?
Top Comment:
This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed.
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How hard is it to get a small business loan?
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EDIT: It's been over a year since I made this post and I still get people randomly trying to sell me loans so I'm quickly updating this. THIS WAS AND ALWAYS WILL BE a hypothetical question asking about how hard it is as part of a discussion I had with someone over a year ago. I never was or will be trying to start the below business. That said, a lot of people gave helpful insights on the subject (when I first posted), however; the best possible answer has come in form of the number of parasitic loan sharks who've been blowing it up ever since. If you've found your way to this post through Google and genuinely are looking for a loan, be sure not to do business with any of the people who've tried to sell me a loan here. If they aren't smart enough to read the very clear post and know there's nothing here for them, they're for sure going to scam you. Leaving this up for the handful of comments with good information if someone (not me) were interested in actually starting a business. Goodluck.
Theoretical question: how hard is it in the US (specifically big city west coast area but open to any insights) would it be to get a small business loan for a restaurant between 200-500k?
For the sake of discussion, I can get together a team of people willing to work for me with 5+ years experience in whatever positions the restaurant may need, I've got market research to show that my restaurant is an underserved but desired demographic in the particular area I want to open, however; I lack any experience actually owning/running a business, have no education in that area, have an ok but not great credit score of 650 odd, and lack any sort of collateral (other than 10kish).
Would any lender take that seriously, if not; what variables might need to change for someone to be willing to lend? Also, would me starting an LLC and then borrowing through that entity hurt or help my chances? Thanks in advance and again this is a theorehetical, no bankers were harmed in the making of this post.
Top Comment:
This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
How to get a small business loan
Main Post:
Are there any small business owners out there having trouble trying to understand what exactly it takes to get a small business loan? Is this a problem worth solving? What type of information do you want to know from the lenders side? I'm looking to build a forum to help small business owners and I'm curious what everyone wants/needs to know
Top Comment:
I think the problem is most business "owners" have is they don't actually own anything yet and they have an idea, maybe a business plan, and think the bank or government is going to give them money with no collateral, credit, revenue, or history of success. My brother wanted to franchise a home inspection business and couldn't get anyone to remotely consider giving him $50k to get it started. It's incredibly risky from the banks perspective. I did nearly $500k last year in revenue and the bank didn't bat an eye giving me a $30k credit line. Have a buddy in the same industry who has a bigger operation who's is around $300k. Loans are really easy to get when you don't need the money.