Questions about small business Loan

[Willdue]

Sooo, me and 4 other friends are looking into starting a small business. Now, im not going to explain the business, cause frankly, it doesnt matter.

Now, like i said, me and 4 others are looking into getting a small business loan, to start a business. SO, what does it take to get approved? We all have decent credit, no one under 600. What else does it take? Any experiences?

[tomustang]

First you need a business plan, then you need to 'sell' your plan to the bank or lender to prove you can pay them back

I'm sure there's websites that can help you make a plan

[jpalamar]

sba.gov has all the info. You can even set up free meetings to learn how to do it step by step.

[bmatyeah]

Yeah, its also good to have this plan to stay focused

[SheaButter]

A business plan is going to be a must. But another thing that you need to look at is how much you are looking for. Because if you are looking to borrow a lot of cash you are going to have to secure that money with something. Usually your residence or show that you are going to be able to pay that money back if you do not make it as a company. A start up loan through SBA would be a great start so check them out but most likely ur are gonna have to come up with usually a home to secure the loan against. Now if you have a home thats great or if one of your friends do also even better. Then you have to look at how much your home is worth against how much you owe, if you just recently purchased the house and didnt put a big down payment down its going to lower the amount you can borrow against the house. If you need any more help,PM me and I can put you in contact with my Commercial Lending Department and they can help walk you through starting up ur business. they are very good at what they do and will give you pointers and things to do to start the business going. I hope this helps a little. AJ

[05GT]

You need me....plain and simple. :mrgreen:

[lownslow95]

I've heard horror stories about "friends" going into business with each other. They all hated it.

[Fujito]

I've heard horror stories about "friends" going into business with each other. They all hated it.

This is true. You all probably won't be friends by the end of this. I've talked to a lot of people who have worked alongside their father in a family owned business and now never talk to each other. I've also met people who have strongly advised me not to go into business with a friend because friends don't make good business partners. And none of these people are kids, but rather they are my customers who are in their 30's, 40's, 50's, and 60's.

One other thing is 4 people is a lot of owners for a small business. 2 owners is even one too many for a small business in most cases.

[Scapegoat]

if you're going to have a business partner... it needs to be a silent one... ie someone w/ money to invest and willing to keep their trap shut because they believe in your plan and want to make money off of it but want you to do all the work while they put up some capital.

[keff108]

One other thing is 4 people is a lot of owners for a small business. 2 owners is even one too many for a small business in most cases.

Great advice! Going in alone will give you more satisfaction as well as letting you take home a large sum of money if the business is thriving. Also you can make decisions yourself without having to run them by anyone else. If you don't want to go in on it alone or you really cant afford to go in on it alone I suggest doing what Scapegoat suggested. Although that may be a difficult task.

Ive seen it happen to my dad plenty of times. He actually lost a bar that he established because of problems with his partner in the business. MY dad also owns a family business and that's alot of headaches and arguments. It can get annoying at times not knowing which of my uncles my dad isn't talking to anymore.

[jcr557]

first you need a 90 day business plan. im in the same shoes as you in the planing of getting something together with a friend, just make your picks wisely and dont just pick anybody.

[RyanG]

Better question to ask is WHY do you need a business loan? We started off with paying out of pocket