Forums: Discussions for entrepreneurs and small business.

From startups in the earliest planning stages to established companies looking to expand, all kinds of businesses take out loans. Loans can be used for initial expenses, financing ongoing operations, or major investments in equipment. After qualifying for a loan, businesses make monthly payments that include a portion of the original amount borrowed - the principal - plus interest to the bank or other lender.

If you`re looking for a business loan, there are some important steps to take before you apply. Lenders will expect you to prove your commitment to the business and demonstrate that you`ll have the ability to pay them back: they`re in the lending business to make money, not to provide a service to struggling business people.

It`s also important to know that every loan application you submit will be listed on your credit record - if you`re turned down by one lender, the next will see that you were declined already, which further reduces your chances. For this reason, you should make sure to do everything you can to get it right the first time.

Good luck and let me know if I can help!

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I am search for a reliable, honest and a trust worthy person to entrust this huge transfer project with

What are some of the criterias in order to qualify for financing i.e credit score, years in business, sole proprietors, LLC, Inc?

The most important criteria is your ability to servie the debt.  EBITDA/Total Debt Service will need to be greater then one.  A reliable history of EBITDA shows a bank you have done it and can continue to do it.  This is why banks don`t like lending to start-ups.  They have nothing to look back upon.  This is where Angels and VC`s come in (at much higher cost).  Without a financial history banks will then turn to your ability personally to service the debt.  More of a personal loan then a business loan. 

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Travis Tschepen
Hibachi Bros. LLC

--My goal in life is to be as good of a person my dog already thinks I am.--

Thanks for the comment MNGrillGuy.

Well said. Startup loans from banks are really de facto personal loans because there is no business history to examine. However, unlike personal loans, startup loans are issued in the name of the business and do build business credit history. Something to keep in mind as your business and its need for additional financing grows.

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I am search for a reliable, honest and a trust worthy person to entrust this huge transfer project with

Well I am thinking about applying at that site but I may end up not doing so. Yes I`m currently lookin for an angel investor but haven`t had any luck finding one. I;ve tried out the gobignetwork.com but haven`t yielded and solid offers other than a guy from Moscow Russia. I`ve also posted a request at guideye.com and have yet to even get a response. 

Wildstorm,

Most business lenders at banks will look for a personal FICO upward of 675, 2 year business history, positive cash flow, that you have personal assets (home is a big plus), NO bankruptcy, reasonable personal debt-to-income ratio, and a maximum loan size of 20% of gross sales, i.e., a company grossing $1 million/year may qualify for a $200k loan.

Angel Investors are a tough find. If you do get lucky enough to land angels, plan on a funding period of 6 months plus.

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I am search for a reliable, honest and a trust worthy person to entrust this huge transfer project with

Gone are the days when living within ones financial limits was considered a virtue. Today it is thought well of people if they possess all the luxuries of life. Without becoming indebted much, people can easily get themselves the luxuries of life. Secured loans will be very helpful in this venture. Through secured loans, borrowers can get cash for purchasing several assets that their limited income would have rarely been able to sustain. A secured loan is an advance to the borrower by a loan provider. Homeowners are particularly preferred for lending secured loans.

Personal Loans - The Loan Bazaar

 

Some people think that a business is easy to put up. They have gotten it all wrong. If you want to establish a restaurant, it has to go beyond grandma's recipe handed down from generation to generation. It is a wise strategy to look at loan programs, ideas from reliable sources and testimonials about the mistakes and advices on starting a business. Go for a loan program which is one of the most successful means that Community Futures (CF) have in fostering entrepreneurship in BC is their ability to provide business loans to entrepreneurs who have had trouble accessing capital from traditional lenders.

In addition to providing individualized business counseling, the Community Futures operation can lend up to $500,000 to new and existing businesses for the following: capital purchases, operating capital,

inventory, start-up costs, top-up financing, and expansion. You don't have to worry because loans received from a Community Futures are fully repayable and are offered at a competitive interest rate. In over ten years of lending to entrepreneurs in British Columbia, the CF'S, on average, have recorded an unprecedented financial institution repayment rate of 96%.Community Futures can help you arrange financing for your business through regular channels (banks, credit unions, and the Business Development Bank of Canada). In addition, Community Futures can provide business development loans from their own funds, as well as by accessing specialized loans programs that target segments of the BC population that may face additional obstacles in securing business financing.

Unique Loan Programs:

 

(1) Forest Communities Business Program

 

The Forest Communities Business Program was established in 1996 to make additional capital available for investment in the forestry sector. The former Forest Renewal BC loan fund was established as a CFDC-FRBC matching investment fund where local Community Futures administer loans to clients operating forestry-related businesses. Contact our office for details by email or call 250-567-5219.

 

 

(2) Aboriginal Business Development Funding

 

Community Futures Stuart Nechako works with organizations such as Aboriginal Business Canada and First Nations Agriculture Lending Association to help meet the business development needs of First Nations entrepreneurs throughout our service region. The criteria to obtain a loan, specific financing criteria must be met, including completing a Business Loan Application.

 

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That was a nice idea.Since the recession, individuals are getting more sensitive to their credit ratings and naturally more people have been boosting their credit ratings. The Fair Isaac Corporation, or FICO, reports that during the past year, roughly 1.4 million people have moved out of the bottom-most tier of credit scores. Fix your credit with an installment loan.

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