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How do I convince the bank to give me a loan to start a business?

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How do I convince the bank to give me a loan to start a business?
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gib lon plx
>>
>>1714621

>wear yamulke
>show them joo tattoo
>approved
>>
>>1714621
1. Have excellent credit.
2. Own significant assets that can be offered as collateral, houses, business equity, whatever.
3. Have a 20% down payment seasoned and in hand.
4. Have experience running a business in the field you're applying for. Lots of experience.
5. Have a list of assets the loan will be spent on that the bank can secure as collateral. Office space, industrial equipment, inventory, fleet vehicles, whatever.
6. Have a written business plan that doesn't look like a toddler drew it up in crayon.
7. Have former or current successful businesses you owned and can point to as proof you're not a complete idiot or even worse, and idea guy.

Banks aren't in the business of underwriting the risks of starting a new business. They want solid assets they can auction off when you fail.

Unfortunately the sorts of people they want to give business loans to don't generally need them.
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>>1714690
Where should an entrepreneur seek funding, assuming they have a solid business plan?
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>>1714781
in the us pretty much any bank can help you apply for an SBA loan.

you need more than a business plan though.
You seriously need all 7 of the things I listed and even then there's a decent chance you'll be turned down.
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>>1714781
you can also try pitching to venture capitalists, but they're not going to hand out money just for a kid with a business plan.

With VC you pretty much need experience. Past performance.
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>>1714791
To add on, you can get away in the angel world with just a plan and proof of concept. Such as a prototype.
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>>1714621
Cry some tears
>>
>>1714690
That is some very solid advice! To add:

8. Have a numbers guy. Banks/Investors love someone who speaks their language and sounds like he understands what it means to make a solid budget and do some fierce controlling. Better yet: Present a full team that compensates for each other's weaknesses (the leader, the expert, the numbers guy, the sales guy, etc).
9. Have references and a helpful network. If your uncle is a lawyer, definitely bring that up.
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>>1714781
p2p loans exploded in the last decade
they seem to fund anyone, often without much security since its not their own capital at risk
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>>1714623
>
fpbp
>>
Overwhelming collateral is the most important. Example: A $200,000 house for a $20,000 loan. I've seen people with bad credit get a loan such as $20,000 with the collateral of a $200,000 house.
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>>1714621
you need a graph
>>
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>borrowing money form the banks
>>
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>>1718139
You must be retarded.
It's called leverage ya dumgus.
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>>1718173
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>>1718201
Oh look, the worst goddamn Fed chair in the last 50 years, Ben Bukkake.
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>>1717515

I own two apartments in a shitty part of town that might be worth around 150k, I have 35k in the bank and want to get a 65k loan to buy a small studio in an area I'm sure it will start gentrifying soon to rent it through aibnb, I have a pretty bad credit score but no debts, do you think I will be able to secure that loan?
Thread posts: 19
Thread images: 5


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