Tell me about getting a business loan

You have to pay it back or your credit will go to shite.

Longtime banker here

With that credit score and that low of a loan amount I would just go the fintech route. You could even (potentially) get a signature loan from a credit union for $50k. Not worth a banks time and too small for sba and really not worth your time to go through sba for that (although sba express is a little quicker).

If you tried finding someone to lend against the land, you’re going to end up paying 10% for expenses to close it. Appraisal, title work etc etc.

If you want the name of some fintech’s just ask. Plenty of good ones out there.

Has to be in your personal name if you do signature. It’s higher rate as it’s unsecured, but with an sba loan at prime +2-3%, the signature loan is likely in line with that. You have to take the signature loan out in your name and then loan it to the business if you want to get technical (don’t have to do this and I wouldn’t).

Not going to get a business loan unless you find a micro lender sba loan. Even then most aren’t going to lend to a start up. Even then they are required to take any and all collateral including equity in a residence if they don’t take the land as collateral.

Even a business loan is going to require a personal guarantee so you might as well go down the signature loan anyway IMO.

No problem man. I know it doesn’t make a lot of sense but I hate people chasing their tail forever trying to find a loan like this. You can also find a Farm Bank that might lend on the land, but again with the fees to close it, it will be expensive just to get that.

Man, just go for it. If you believe it will work, market the shite out of it through social media and word of mouth. I'm not some amazing business guru but I have a friend who had created and consulted out a business plan, understood his expenses, his profit margins, what his rates would be all down to decimal points. Business failed in less than a year.

Another friend decided to start rebuilding boats during Covid after getting laid off. Seadek, paint jobs, simple wiring, radios and speakers etc. No plan, just a prayer and a 75k loan from his 401k and has turned it into a very impressive 15 man operation.

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As a banker have you ever saw a business proposal like mine. Success or failure ?

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Not exactly but I’ve seen plenty of them. You’ll never see a business plan that says in it anything about failure or not making a profit.

I’ve also seen tons of businesses take on waaay too much debt (usually it gets privately financed at higher rates) than they need to take on.

Your project doesn’t sound bad. What I would suggest is limit your initial outlay as much as possible. Your $50-$75k sounds reasonable. Don’t forget to factor in employees etc as I’m not sure this is something you can do with a job yourself.

Number one thing is don’t bury yourself with fixed costs that you can’t get out of if the shite hits the fan. As a banker, I’m trained to always look at the worse case scenario and how do I get the bank out of it.

Sounds like in your case the upside is a ton, you already own the real estate free and clear (big nut you’re avoiding with no lease or note payment) and need minimal funds to get it cranking.

Absolute worst case is you still have a job making 6 figures and you have a $50-$75k debt that you can probably pay back with personal income.

Hope that makes sense.

Soupboy - what’s your email address or shoot me an email. Lnobles@redstickag.com

If you guys are doing land it will be good to have another contact for that. Not many lenders lending on land at all right now.

To the OP travel down this road and see what he can do. I still prefer unsecured debt for a little more interest rate vs pledging assets for that small of a loan amount. Just my opinion. Easier to walk away from unsecured debt in a worst case scenario rather than losing your land.

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Tell me about getting a business loan by Im4datigers
quote:
As a banker have you ever saw a business proposal like mine. Success or failure ?


Not exactly but I’ve seen plenty of them. You’ll never see a business plan that says in it anything about failure or not making a profit.

I’ve also seen tons of businesses take on waaay too much debt (usually it gets privately financed at higher rates) than they need to take on.

Your project doesn’t sound bad. What I would suggest is limit your initial outlay as much as possible. Your $50-$75k sounds reasonable. Don’t forget to factor in employees etc as I’m not sure this is something you can do with a job yourself.

Number one thing is don’t bury yourself with fixed costs that you can’t get out of if the shite hits the fan. As a banker, I’m trained to always look at the worse case scenario and how do I get the bank out of it.

Sounds like in your case the upside is a ton, you already own the real estate free and clear (big nut you’re avoiding with no lease or note payment) and need minimal funds to get it cranking.

Absolute worst case is you still have a job making 6 figures and you have a $50-$75k debt that you can probably pay back with personal income.

Hope that makes sense.
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Yeah. It does. More worried about reliable employees and reasonable ones ($$$) then anything. Granted I can hire young men for grunt work.

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Yo this sounds like my dream


I’ll buy it from you straight cash

I’m serious, would you consider selling?

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townspeople, he’s crying wolf! Drop everything and run quickly to help him!

I’m just hoping OPs business skills are better than his quoting skills