In essence, you can bring capital into a business via have debt or equity or a combination. Within those 2 broad categories, there are numerous approaches depending upon the specific circumstances and objectives. We’ve identified 40+ and I’ve seen some claims of over 100.
Most first time entrepreneurs start with the local bank or SBA (who is not a lender) and most get a response similar to the one you got – although the “reason” given may vary.
Our experience says that (just like getting customers) it is important to present your deal to those who value the “benefits” you offer and to do it in a clear, concise and compelling manner.
While you`re filling out those long loan funding avenue forms ... oh, and they`re long forms too and many of them ... And because you may also eventually deal with a few objections along the way ...
Remember these business thoughts... A few to chuckle by...
There has been opposition to every innovation in the history of man, with the possible exception of the sword.
There is absolutely no substitute for a genuine lack of preparation.
There is nothing so habit-forming as money.
A penny saved is an economic breakthrough.
Good Luck in Your Financing & Funding Avenue Adventures!
Design Ideas Marketing Associates
Assuming you borrow $1.3M at 8% for 10 years - the annual payments will be $189,000. The gross income of $225 will barely service the debt.
With 90% occupancy already - the income appears to be fixed.
I think you`ll need a "plan" to show lenders how you are going to increase the gross revenue and/or reduce the expenses.
The annual payments for 20 and 25 years are nearly the same
To get that length of loan - I would suggest that you start by talking with an SBA lender to see what they can do for you. It`s possible if there is real estate involved in the purchase - which I assume is true in your situation.
However, I would still suggest having a plan for increasing the revenue & profits before I have a serious talk with any lender.