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    16 Replies Latest reply on Dec 10, 2007 6:09 AM by LUCKIEST

    business loans

    CHOUTEAU Newbie
      I was recently promoted to Managing Partner of a restaurant with a popular name. My down fall is my credit. I am only 26, and worked very hard to get to where I am now, or I obviously wouldn't be here, however the promotion comes with a $25,000 buy in. I was not smart about my financials through college, and am working to get my credit better, but I can't fix it over night. What kind of options do I have to help me get a loan for my business? Are there any grants out there for young female business owners that I am not aware of?
        • Re: business loans
          CorpCons08 Ranger

          CHOUTEAU,

           


          My firm has helped people with less than perfect credit get business financing.

           

          I would be happy to speak to you about getting this $25,000 loan.

           

          Please feel free to contact me at mailto:d.skolnick@skolnick-associates.com.

           


          Best regards,

           

          CorpCons08
          • Re: business loans
            LUCKIEST Guide
            CHOUTEAU, Congratulations on being promoted to Managing Partner of the restaurant.
            Many students are not smart about financial's through college, but improve after graduation.
            How soon do you money for the buy in??
            Tell us more on how you are working to get your credit better.
            The best place to get a loan might be parents or grandparents. (If my child came to me and said
            that he was promoted to Managing Partner of a restaurant and needed a buy in I would help).
            Good luck, LUCKIEST
              • Re: business loans
                CHOUTEAU Newbie
                I am working to get my credit better by opening up more accounts and paying my bills on time. I am also getting my student loans consolidated, and working quickly to pay larger amounts instead of the minimum payments. As far as family goes, my father cannot help me nor can my momI asked my grandparents and they believe that if they do it for me, they will have to give all of their grandchildren loans. I am where I am at such a young age becasue I have always had to work hard if I wanted something,and have always been awre that it is up to me to financial support my future.
              • Re: business loans
                Lighthouse24 Ranger

                Congratulations! I only offering this advice because you said you were not so smart with financials at one time: Please check out the risks and obligations that accompany this buy-in, along with the benefits that you'll gain. It's my hope that the current owner or owners are honest people who are giving you this opportunity because it will be good for you, good for them, and good for the customers you serve. That isn't always the case, however, especially in the restaurant biz. Here are some of the questions you should be able to answer before you borrow $25K for this:

                What's the legal structure of the restaurant (are you legally forming a new partnership, adding your name to an existing one, and getting shares in a corporation)? Does the restaurant have any outstanding debt or taxes that you will become partially obligated for once you're a partner or shareholder? What will be your tax basis for the existing equipment and fixtures, and how have those been depreciated up to this point? What is the restaurant's current and projected cash flows and profits? Is the restaurant on good terms with all suppliers, neighbors, and health officials -- or are there some pending issues? How will the managing partners resolve disagreements about operational decisions? What exit strategies are available to you should you want out of the deal at a future time. What exit strategies are available to the current stakeholders, and could one or more of them bail on you next month and leave you stuck with the whole enterprise? Do other key stakeholders have non-compete clauses to prevent them from leaving and opening a new place in the same area? You get the idea . . .

                The restaurant business is a tough one, and having the answers to questions like these will help make you smart about this opportunity. More important, the knowledge you gain will greatly increase your ability to secure a loan. Best of luck!
                  • Re: business loans
                    CorpCons08 Ranger
                    Good questions Light...
                    Looking forward to hearing the responses.
                    • Re: business loans
                      CHOUTEAU Newbie
                      The restaurant is Outback Steakhouse. The debt that was built up by the previous partner was taken care of the first month that I took over here. All of the debt was taken out of the previous partner's 25,000 that he put down when he originally took over the store. I am paid a base salary, and then receive a certain portion of the profits of the store. I prefer not to discuss the particulars of my contract over the internet, so excuse me for not including the specifics. Outback no longer has shares, we went private in Jan. Obviously a lot of decisions are made for us on a higher level. However, Outback is doing an amazing job moving forward with changes quickly and making choices to help us bring more money to the bottom line. Our company is not going anywhere. As far as my locatoin goes, I am protected for a certain amount of time from any loss that the store would have, if there should be any. My location has been open for 5 years, so it is not falling apart, obviously there are repairs but that is any location.We can capitalize certain exspenses, so that the cost doesn't hit our bottom line. Our home office also takes care of our marketing and provides us with a local marketing budget for every year. We have a great relationship with the community because I am involved with neighborhood associations, schools, churches and chambers. I was put here to build sales, because it is a low volume store for Outback. The store will not be shutting down, but should that happen and I would still be in contract, I would still have job security at the same pay.There will not be another Outback opening up close to us any time soon.As far as getting out of the contract in the future(I do not want to leave my company, I plan to move up further), there are options for me, and obviously it depends on how long I have been in my contract, and what I have done for my location and if I have been current with invoices(which we currently are). I am aware that I did not answer the questions in specific, but I have signed my contract already and do not deem it appropriate to put the details on the web. I hope that I have given some sense of direction.
                        • Re: business loans
                          Lighthouse24 Ranger
                          Yes, different scenario than I was imagining -- and many less problems for you or a potential lender to worry about as a result. Thank you for taking the time to clarify in such detail.

                          Even though your financial situation is less than ideal, it sounds as though you at least have the type of restaurant knowledge and experience that a lender would want to see -- so presenting your loan request (and yourself) to a bank officer will be the key. Prepare thoroughly. And persist -- don't assume that a "no" from the first bank you try (or the second, or even the tenth) means that the answer will always be "no" from everyone. Applying for a business loan is like any other type of business interview and presentation -- it gets easier, and you get better, each time. You only need one "yes," and I feel confident it's out there.

                          Best of luck to you!
                            • Re: business loans
                              CHOUTEAU Newbie
                              Thank you for the advice. I don't give up, and refuse to take no as my final answer. Do you have any recommendations for documentation that might help me when going in to meet with potential lender?
                                • Re: business loans
                                  LUCKIEST Guide
                                  We get the feeling that you won't (or don't) give up. Your last question about recommendations for documentation.
                                  Your college diploma, your resume, a business plan, proof of your title and employment
                                  and the fact that the debt that was built up by the previous partner.
                                  LUCKIEST