Posted on 07/21/2014 5:39:12 AM PDT by SeekAndFind
“You need perfect personal credit, perfect business credit, collateral up to the amount of the loan, and no real pressing need for the money.”.........
Unless you are a “minority”.
“You need perfect personal credit, perfect business credit, collateral up to the amount of the loan, and no real pressing need for the money.”.........
Unless you are a “minority”.
Your statements remind me of the old joke, that a bank will loan you money, if you can prove you don’t need it.
Sorry you are having trouble getting financial help you need with your business.
I’ve heard that there are investors out there who help businesses expand. I have no idea what their interest rates or expectations about equity sharing in the business are, but, maybe you will find someone that way to give your business the financial boost it needs. Sounds like, for whatever reason, that you just aren’t going to get a conventional bank loan/line of credit.
They are out there but the ones I’ve found so far have pretty high expectations. They seem to be focused on the desperate businesses which I’m not.
They also look for companies larger than I am.
Small local banks are probably the best avenue to try.
One of the main issues besides the actual value and potential of your company is .....your business is only worth what it is because YOU are there running it. Be able to show a “business plan” that includes what’s happens if your not there for some reason, how the business will continue to operate in your absence.
I see one post suggesting private money where I think they are referring to “Angel Investors” some of them are not so angelic and usually only want opportunities with huge upside then take too much in return. The up side is usually NO collateral but they really have to believe in you - again your “Business Plan”.
Private money is how many of us go these days - which can be fine depending on the terms you can get. For collateral they may want something not tied to the business - like your house or other property. Most want 1st deeds of trust.
The bottom line will be the true value of your business vs what you intend to borrow the money for and how you can demonstrate how that will increase cash flow and profits.
Good luck
Tell them you need it to short sell gold...
We’re in the third biggest stock bubble in U.S. history
“I chose to hire and that brings a big set of issues.”
IF your workers are “Employees” yes that comes with many issues. An alternative is to have contract labor but you must meet certain criteria to be able to do that.
Contract labor is where that worker operates as his own business and is responsible for his own taxes, insurances and all that goes with that.
The IRS provides a list of criteria / points that the worker must meet to be classed as contract labor but if you can qualify that way it saves a world of trouble.
Thanks, yes I used to use a lot of 1099s and subcontractors but found it to be problematic.
Its a delicate balance but I found employees tend to be more responsive to be where I need them when I need them there.
Funny, I havent had one bank ask me for a business plan yet. Not one.
I had three different people approach me a couple years ago.
First offered up 2.5million but wanted to be in charge of delivery but didnt know anything about the industry.
Second, wanted to take over sales and would pay me based on sales revenue.
Third, wanted me to bring in revenue sufficient to pay my employees and if I didn’t then I would pay him back.
So two of three were paying them to take the business and the other was a sure failure. Many investors just want access to your customer lists and not your business.
Sounds like you have a good viable business and are familiar with 1099 vs real employees. I don’t see anywhere where you say what type of business you have ?
RE: the business plan - I’ve never had a bank ask for one either (usually only investors) however, the info that goes into a business plan can at times be essential even if just in a cover letter or some other format.
Sitting across the desk from a typical banker is the way it used to work. Seldom these days do you get a chance to meet the person who gives the nod for your loan so having a good presentation is important. Even loan officers in banks are a joke these days as either an underwriter or board has to review your viability. That’s why it’s good to take the time to write something out that says who you are, education, your age, experience, how you started your business, it’s performance and growth, profitability, competition, a comment or two on other emerging markets that may affect you, your goals and objectives for the business, how long you want to stay in or a plan to pass to one of your kids, why you need the money, how it will be disbursed, how you arrived at the amount you need and other such things to not only paint a good picture of you and the business but show them you can read and write effectively, deal with the burdens of government regulations (Don’t let them know your a renegade Freeper) lenders like conformists even when that may not be who you really are.
Again I suggest a small local bank - you can usually sit face to face with someone who can take measure of who you are and what you’re trying to do.
OR consider this:
Different banks, credit unions and savings in loan, pursue different markets ie auto loans, mortgages, commercial loans etc. If drift diver is not a hobby but is tied to your business you may want to pursue lenders who specialize in your market.
The big banks - BofA, Citi, Wells are F’er’s to the small guy.
Regional and local banks are the way to go but it has to be the type of loan that fits their portfolio.
In my area of California I have started several business ventures for example a farm I own - to borrow $ I use banks that specialize in Ag loans and lines of credit, I had to go to a small bank that was about 2 hours drive but got the $ no problem.
I had an engineering firm for many years that got one of the local banks in my town. I started a gas company and went to a lender that makes loans only in that market - again, got $ easy.
The same for buying insurance. different carriers specialize in specific businesses,
A further note - I have one of the old lenders I used years ago actually call me to see if I wanted a loan because no one is applying for loans in what they specialize in (Commercial loans) - because people don’t think they can get them -
I just got a loan for a restaurant I own to do an expansion because it’s doing so well - got that loan from one of my customers. You may be surprised at what you may find in the private area by just putting the word out
People love to hear of someone doing well these days, in these markets. Many old timers aren’t getting sh*t for their rate of returns and are happy to help.
Though anyone who has money usually has it because they are smart and will want to have some sort of collateral or guarantee that you will have to choke down. Usually still beats dealing with the friggin banks
Thanks for the suggestions. I own a business the banks don’t really understand which I suspect is part of the problem. We do IT Security and Compliance consulting. Risk assessments, security testing (hackers), and breach response type work.
A big part of our business is helping hospitals figure out their HIPAA compliance. We work with hospitals, federal govt agencies, and a few financial firms although we started in the financial sector.
Too much borrowing going on anyway...I’m with the Fed here.
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