I congratulate on your decision to become a business owner (or taking your existing business to a new level). In order to get good feedback from this forum, you probably need to provide more information. For instance, did you create a business plan for a brand new business or to expand an existing business? Do you have adequate income coming in to service the loan right now if you received it? Are you currently working a job or running a business now? How much experience do you have in the industry you designed the business plan for? Do you have other sources of obtaining capital, such as investments or retirement income?
Chances is are that if you are embarking into a industry that you don't have a lot of experience in, a bank will not approve you, even if you had good credit. The fact that you don't have stellar credit will definitely not help. However; at the end of the day, the bank wants to know if you can generate adequate revenue to service the loan. Also, a lender is always more inclined to lend if the borrower bears some of the investment cost. You're trying to get 100% funding for a $100,000 investment. A lender will be hesitant if you aren't able to assist in the investment yourself.
Give the forum more information about exactly what you have going on and I'm sure you'll get some great advice.
Ok, I'm starting an entertainment business, while I don't have specific experience working in the field, I have extensive customer service skill and my own children to show for the working with kids part. For the actual entertaining part, I do have experience. Most of what I will be financing is equipment. I will need aproximately $73,000 for all my equipment and miscellaneous start up costs. I curently have a job that pays the bills, but, that's all it does. I own a home that (bought a year and a half ago so not too much equity) and I can very easily have a co-signer if it comes down to it. The business will absolutely generate sufficient revenue to pay back any loans granted, as my business plan shows. The model for the business has low overhead costs and a lot of revenue potential.
Thanks for the additional information. Hopefully other users in the forum will be able to add to the discussion. You indicated you are starting an entertainment business. That is a very general label. What type of products, services, content will to provide to customers/clients? Are planning on producing movies; sreenwriting; event/concert promotion; etc? Depending on your industry focus, a bank may want to see you go at this business on a lower scale part time before they will take a risk on you. Say for instance you want to produce movies. You may want to buy a lower-end video recorder and a nice computer outfitted with Adobe Creative Suite 5 Master Collection. You could probably start here for around $7,500. You can start of with some small projects such as commercials for local businesses to get your feet wet. Then move into small movies that you can manage in your budget.
In my opinion, I think it is very unlikely the bank will loan you $73,000 if you don't already have a track record as an business owner in your selected proposed venture. They would also like to see if you currently have free cash flow that would support the servicing of the loan before you start bringing in revenue. Could you pay 3 or 4 months of loan payments on the $73,000 if you received the loan tomorrow? Most new businesses don't start making money immediately. So, it may be several months before your business generates cash flow.
Go at it on a smaller scale first and show that you can make money, then you can demonstrate you need better equipment to attract more lucrative projects. Since I don't know exactly what area of entertainment you are striving for, starting off on a smaller scale may not be feasible. However; since I didn't know, I just threw out an example.
Again. Best of luck.
I have my business plan all finished. Im ready for what I understand to be the hard part: financing the whole shebang. I would love some tips from you all as far as marketing myself to lenders. Also, anyone here who has been funded, can you tell me how the process went? I'm looking for a loan under $100,000.00, will that help me or hurt me? Credit score may be an issue, stellar payment history, but alot (for me) debt. Would it be wise to pay something off before even aproaching a bank?