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3 Replies Last post: Dec 12, 2008 6:36 PM by NoBullFunding

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New Business Looking for first loan

Dec 12, 2008 9:54 AM

Start-up

svprovideo 2 posts since
Dec 12, 2008

Well, after do side work in video production for nearly 10 years, I decided to start my own part-time business in addition to my full-time job as a television news photographer. Since launching my site in early August, I've had an amazing amount of work come my way with much more scheduled in 2009. Therefore, I'm going forward and looking to secure my first business loan to invest in new equipment and take the steps to become fully self-employed and turn this into a full-time business. I'm hoping to eventually hire people by 2010 because I can't handle all the work myself. I've never been one to approach individuals about investing money so I'm going the traditional route and going to get a small business loan from a bank. Any thoughts or suggestions from those who've done this and what can I expect the bank to want from me when I apply other than my EIN, business plan, and list of equipment I plan to purchase with the loan??? Thanks in advance for the help.

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LUCKIEST 7,933 posts since
Aug 6, 2007

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1. Re: New Business Looking for first loan Dec 12, 2008 11:08 AM

New Business Looking for first loan, Welcome Michael

First of all, the best of luck in your new business venture. There are many different ways to answer your questions, so I am going to guess (do not like the word "assume") that you already have the EIN number, written
the business plan and have a business checking account.
If all of the above is true, then you will be preparing a Schedule C on your 2008 taxes.
Showing income and expenses from August to year end would be very helpful to your bankers. This would be the basis of future projections of how your company will be doing.
Do you own real estate (a house)?? Do you have an Accountant??

Hope this helps, LUCKIEST

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Start-up

svprovideo 2 posts since
Dec 12, 2008

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2. Re: New Business Looking for first loan Dec 12, 2008 1:55 PM

in response to: LUCKIEST

I have an EIN number, business plan, and spreadsheet list of equipment, with prices, that I will be buying with the loan. I do not have a business checking account and, according to the IRS website, will be filing my business income as part of my personal income taxes. Not sure what the form is but I have it on file. I'm just curious of everything the bank will want and if its too many hoops to jump through then I've already found a company I can lease the equipment through.

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Mogul

NoBullFunding 278 posts since
Oct 6, 2008

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3. Re: New Business Looking for first loan Dec 12, 2008 6:39 PM

A bank will want to see proof of income, so personal tax returns and business tax returns (it sounds like you've operated as a schedule C, so that will be part of your personal returns. They'll also require a personal financial statement. The key to most startups being funded is having an outside source of income that can repay the loan even if your venture doesn't go the way you expect it to. If your full time job can pay the bills and you can demonstrate some realy success, you could have a shot at being approved.

Good luck!

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