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    1 Reply Latest reply on Oct 4, 2009 10:05 AM by phanio

    I have completed my business plan....

    rahinson Wayfarer
      I have completed my business plan.... except for the companies exact location.....and decided to consult a score counselor before I took my plans to the bank....I have been working on this bp for well over a year now....thought I had all my stuff together...only to find out....counselor says banks wont even consider a startup business right now without a fico score of 760 or higher....which mine is just slightly lower....Big Blow #1..... she also says that banks are requiring 1/2 or more from the borrower in order for startup....Big Blow #2....I had planned on using the equity in my house as collateral to secure the loan...equity in my house is about 35% of whats need to completely fund the startup... Is this the new industry standard or is there still a spec of possibility....?
        • Re: I have completed my business plan....
          phanio Pioneer
          There are other ways. First, does your bank offer SBA loans - that could get you around both the credit and collateral (or down)? Second, there are several non-bank lenders that could provide you the funds you need without all the bank requirements like extremely high credit and impossible equity positions.

          Or, if the funds you seek are for different purposes - you might be able to get a loan for each purpose - this means you don't have to try to get a huge single amount loan from your bank. Example, if you need equipment - find an equipment lender with less requirements than your bank and get the equipment or loan that way. Thus, when you do go back to your bank - the overall amount you need will be lower - thus lower down payments or owners equity - making it easier to get approved.

          Business Money Today