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    5 Replies Latest reply on Jan 31, 2008 10:00 PM by SageTrout

    Advise for LOC Loans for new restaurant startup

    Seck305 Newbie
      I'm a young ex-investment banker that has turned into opening their own small business for about 3 years now. I've been primarily in the real estate investment side of things, but it has always been a life long dream to open a unique concept.

      I believe I have all the information I need, the business plan, the start up costs and the right people in place dying to get started - but it seems as though the banking industry it non-responsive. I own 7 investments homes to which i've maximized (from a home equity perspective), but I still have great cashflow, liquid assets and I believe everything I need to receive the $150-$300k that I would like to get started.

      My Questions to everyone is:

      1) What bank does everyone recommend to approach to get the money I need. I've tried Wachovia, Bank of America, and PNC - and they all don't even seem to call me back!

      2) Those of you who started their small business (preferably a restaurant), how did you get the funding? What personal interest monies does the bank expect?

      3) Any other connections for restaurant consultants?
        • Re: Advise for LOC Loans for new restaurant startup
          CorpCons08 Ranger

          I have worked with many restaurants in obtaining financing for their venture. The thing with banks (you as an ex-investment banker should know), is that risk plays a large role in their lending practices. I would like to review your business venture in some greater details and perhaps help you get the financing you need. My firm works with businesses of all sizes in obtaining their commercial financing goals. My email address is

          • Re: Advise for LOC Loans for new restaurant startup
            LUCKIEST Guide
            305, Welcome to this web site. As a young ex-investment banker, you should know banks work.
            Do you know about SCORE. SCORE will not get you the funding, but they could open doors.
            Another suggestion is to go to the Members page and add a few words about your concept.
              • Re: Advise for LOC Loans for new restaurant startup
                Seck305 Newbie
                I don't see how the concept is relevant here. I know how banks work from a merger and acquisition standpoint when Company A wants to acquire Company B for $300MM with triple A credit.

                However, what I don't know is how banks view me, what they are willing to lend to a small business based on cash flow. I've come to search here to see others personal experiences, and i'm disappointed to find that thus far there are only individuals trying to promote their own businesses/products.
              • Re: Advise for LOC Loans for new restaurant startup
                SageTrout Wayfarer

                If you want to have success in obtaining financing, I strongly suggest that you use a lender like me who works with multiple lenders. Banks typically will not seriously discuss a loan with you unless they have a relationship with you. You're not shopping for a car loan or home mortgage, you're looking for a business lender who will take you seriously and work with you.

                Based on what you wrote, I can see why you may have some problems. In addition to having good credit and adequate collateral to finance a startup, a business lender is going to look closely at your experience in the business you want to start. You cited your experience in investment banking and real estate, but you didn't say anything about your experience operating a restaurant. Either you need to have that experience or you need a partner that has the experience.

                In qualifying for a startup loan, you need a solid business plan and reasonable cashflow projections. You need to thoroughly research everything and know the market and operation intimately. You'll need to provide a breakdown of the use of funds - leasehold improvements, equipment, and working capital. A lender won't be satisfied with estimates for leasehold improvements and equipment. You'll need real numbers from vendor quotations.

                For SBA financing, you'll need to provide 25% to 30% of the total cost in the form a non-borrowed injection. There are other alternatives to SBA but that depends on the business.


                If you would like to discuss your plan with an experienced lender, please contact me at or 888-498-8999 ext. 109