Post a new topic
    8 Replies Latest reply on Aug 8, 2009 6:17 PM by bentenn

    How hard is to get a loan?

    mgdphotos Newbie
      Hello
      I've been doing cakes, pastries and catering for the past couple of years. But I want to open a restaurtant I do have some money save up but I know that it will cost me over 25,000 to open a restaurant. How can I get a loan if my credit is not that good? Am I going to have a lot of problems getting a bussines loan?

      Maria
        • Re: How hard is to get a loan?
          LUCKIEST Guide
          How hard is to get a loan, Welcome

          If you want to raise money to finance a new business, you need a business plan.

          Tell us more. Go to Members page and share some info.

          Do you know about SCORE?? SCORE is FREE
          <!--Session data-->
            • Re: How hard is to get a loan?
              mgdphotos Newbie

              Thanks for replying
              I do have a business plan, but is only 3 pages I have notice that a lot of business plan is more than 3 pages so I'm not sure if mine is good enough to present it. I've heard from Score but I tried to contact a local counselor, I have send several emails and I have not received a reply back. My husband knows a guy the owns more than 8 restaurants in my area, we are meeting with him today to see if he can help us with the money part. Do you think it will be a good idea? Give me some advice, please
              Thanks
              Maria
            • Re: How hard is to get a loan?
              colin104 Wayfarer
              For a business loan the most important thing is your business plan. Make sure you have a good business plan which "proves" that you have the skills, knowledge and vision to lead your business to success. The only thing you need is part of the money, but the lender's risk is minimal because of the aforementioned and because you will co-finance the venture yourself. Lenders ask for your credit history, business plans, collateral, etc only to minimize risk. Try to convince them that your restaurant business bears negligible risk.
              • Re: How hard is to get a loan?
                colin104 Wayfarer
                You have to make sure you have a good business plan. Lenders try to minimize risk, so if don't have collateral or a perfect credit history, you should have at least a very good business plan that "proves" that you have all the skills, experience and vision necessary to bring your venture to success.

                link=http://www.digitalhotspot.comDigitalHotSpot[/link] - the place for online business owners
                • Re: How hard is to get a loan?
                  mgdphotos Newbie
                  I do have a business plan, but compare to other business plan that I have seen mine is not good I guess because is small compare to other plans.
                  • Re: How hard is to get a loan?
                    Wayfarer
                    If your credit is not good, don't waste your money paying someone to write a business plan, because you will not be approved for a bank loan. If your credit is weak, the bank won't overlook that just because you have a business plan. For the amount of money you are looking for, you are more likely to finance your business if you borrow from friends and family. If you can't raise enough that way, you can always use credit cards.

                    My solution is not ideal, and does not fit the boilerplate advice that you'll get from small business advisors. But most entreprenuers will tell you that at the beginning, you scratch and claw and do what you need to do.
                    • Re: How hard is to get a loan?
                      bentenn Adventurer
                      If you have been successful making and selling cakes and other desserts, my suggestion is to do more of it and earn your way to finance your dream business. And from experience, $25k is really not much money to start a restaurant of almost any size. And yes, a 3-page business plan suggests you may not have reviewed all the issues you will face with a much more complicated business than your current business including a detailed one year projection, etc.

                      One idea I suggest to clients is to continue doing what you are doing now to continue to earn some money and build on your past success while taking a job, any job, at a restaurant to learn more about the ins and outs of that complicated business. Learn from the inside what issues you will be facing from ordering food to managing a crew of employees at various skill levels to marketing to location and much more. A 1-year stint in someone else's restaurant can be a great education before getting started on your own. And please know the #1 new start up business that fails most often is opening a restaurant.

                      All the best to you. And if you do need professional no cost help with your business plan and suggessions on how you might secure some additional funding, contact your local Small Business Development Center (SBA) for counseling and advice and low cost workshops. Ben