Anyone know about Business Loans?

[ProDJ26]

Opportunity is knocking and I want in. There's a great opportunity in the fitness industry where I'm located. I'd have to invest a pretty penny but my gut says that the rewards will reaped themselves.
Does anyone know about Business Loans? How do they work? How do I apply? My credit isn't all that great so I know that will be a factor but I'm a believer. I know it can happen. What steps would I have to take?

 

[Tenacity]

Well, I work in this field so I know a lot about them lol. Did you want to PM me the details?

 

[sodbuster]

The biggest thing to know, is if you HAVE money and don't really need it, they are happy to loan to you. If you are buying something guaranteed to pay the loan back {building for renting, etc), they are easy. If you are buying an established business, they are OK. Starting a business from scratch with a wild azz guess as to cash flow? Good luck, you are going to need your credit, they aren't sharing much of theirs

 

[ProDJ26]

Its an established business definitely not starting from scratch lol. What do you do Tenacity?

 

[sodbuster]

Well, have you looked at the books? What are they making? Is there enough profit for you to make the bank payments AND live on? If you aren't an accountant, hire one to look at the books and tell you. IF there isn't enough money to avoid eating pork and beans for years, don't bother with the bank.

They will want to know you. How much experience in the field do you have? And do you have the business experience to be able to keep it running? Banks want to make money off you, NOT run a gym themselves {which they will have to do if you go under}

 

[ProDJ26]

Updates....

Around $100k start up

(Morgan Freeman voice) "Good luck"

 

[sodbuster]

save up your money, these deals come around about every 7-10 years. Next time, you will have the cash to go..... I really didn't have money until I was in my 40's. building my office and buying a house for the wife took it all..... Deals were around me, but a lack of money kept me out of them. Not as much of an issue now.....

 

[evan12]

From your post I dont recommand you to jump to business , you seem not that experienced . Also loans look appleaing but when you start paying them they are really not that fun

 

[Tenacity]

I work in the commercial finance sector. If you are looking for start-up funds, let me ask you, does the business have any operating history at all or is it literally starting at a revenue amount of $0? Also:

- What business sector is it in?

- Have you put any equity into the business and if so, how much?

- Does the business own any pre-owned assets, such as any type of equipment?

- Is your personal credit score pretty good? Such as maybe over 700 or is it in the 600 - 650 range, or under 600?