- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message

Getting a small business loan/finding investors
Posted on 11/10/11 at 10:51 am
Posted on 11/10/11 at 10:51 am
MT ballas,
A) What do I need to present to a bank when trying to acquire a small business loan?
B) What's a great bank to start with?
C) How do I "pimp" the idea to investors/find the investors?
Thanks.
A) What do I need to present to a bank when trying to acquire a small business loan?
B) What's a great bank to start with?
C) How do I "pimp" the idea to investors/find the investors?
Thanks.
Posted on 11/10/11 at 11:01 am to Fratagonia
I have never done this before but I can guess you are going to need:
1. A good idea
2. Said idea has an untapped market
3. A business plan
4. ????
5. Profit
1. A good idea
2. Said idea has an untapped market
3. A business plan
4. ????
5. Profit
Posted on 11/10/11 at 11:14 am to Fratagonia
ability to repay the loan, and/or secure the loan with collateral/personal guarantee.
Posted on 11/10/11 at 4:06 pm to Fratagonia
down payments/collateral
business plan
resume
references
anything else they ask for
business plan
resume
references
anything else they ask for
Posted on 11/10/11 at 6:48 pm to Fratagonia
Are you trying to become the world's next billionaire T-shirt chairman?
Posted on 11/10/11 at 8:26 pm to Fratagonia
Be sure and say "pimp" and "ballas" alot when talking to the bank. Sure fire way to get them behind your plan.
Posted on 11/10/11 at 8:41 pm to jonboy
oh and in your business plan make sure to say you will give free chicken wings to all of your best customers.
Posted on 11/11/11 at 8:11 am to Fratagonia
I am currently going through this process with the owner of the business I currently work for to start up another business where he will take me along with him, so I am very involve with this deal. This is how this is working.
The owner and I met with the Area President, Credit Analyst, and VP of commercial lending. We pitched the business plan, showed projections for year 1, and provided financials for his current business venture with more positive projections on bid jobs we have recently secured. We also had to show/explain losses on certain bid jobs of the current company. The package was submitted to the board and we should hear of the approval on Monday.
This owner has been dealing with this same bank / commercial banker for approx. 20 years so he has a proven track record of success, but he still has to come up with the initial working capital from personal funds, put a down payment on the loan, and maintain a certain $ amount in liquidity which coincides with the debt to equity ratio figured. The liquidity amount required will step down as the debt to equity ratio lowers closer to industry average.
The bank did offer a six month interest only period on the loan to assist the new company in stocking up its own working capital.
The owner and I met with the Area President, Credit Analyst, and VP of commercial lending. We pitched the business plan, showed projections for year 1, and provided financials for his current business venture with more positive projections on bid jobs we have recently secured. We also had to show/explain losses on certain bid jobs of the current company. The package was submitted to the board and we should hear of the approval on Monday.
This owner has been dealing with this same bank / commercial banker for approx. 20 years so he has a proven track record of success, but he still has to come up with the initial working capital from personal funds, put a down payment on the loan, and maintain a certain $ amount in liquidity which coincides with the debt to equity ratio figured. The liquidity amount required will step down as the debt to equity ratio lowers closer to industry average.
The bank did offer a six month interest only period on the loan to assist the new company in stocking up its own working capital.
Posted on 11/11/11 at 2:18 pm to RedStickBR
quote:Whoever you are, you are correct.
Are you trying to become the world's next billionaire T-shirt chairman?
Posted on 11/11/11 at 2:18 pm to jonboy
quote:Really
Be sure and say "pimp" and "ballas" alot when talking to the bank. Sure fire way to get them behind your plan.
Posted on 11/11/11 at 2:19 pm to simonizer
quote:
free chicken wings to all of your best customers.
Posted on 11/11/11 at 2:20 pm to TRUSAINT21
quote:Thanks for info
TRUSAINT21
Posted on 11/11/11 at 5:09 pm to Fratagonia
1) You need a solid business plan.
2) It will help if you have potential (sold) business.
3) An investor is going to want a percentage of your company. The more they invest, the higher the percentage.
4) Bank lending and credit lines will be based on your personal credit and assets. You're going to have to personally guarantee any debts. If you don't have great credit and good assets you aren't going to get a loan.
Best of luck to you. I've been self-employed since 2000 and I can't imagine working for someone else again.
2) It will help if you have potential (sold) business.
3) An investor is going to want a percentage of your company. The more they invest, the higher the percentage.
4) Bank lending and credit lines will be based on your personal credit and assets. You're going to have to personally guarantee any debts. If you don't have great credit and good assets you aren't going to get a loan.
Best of luck to you. I've been self-employed since 2000 and I can't imagine working for someone else again.
Posted on 11/12/11 at 11:09 pm to Fratagonia
quote:
C) How do I "pimp" the idea to investors/find the investors?
If you're talking about soliciting investors from the public, then you do so with a seasoned business/tax attorney so you don't run afoul of SEC regulations (or tread at your own risk).
Popular
Back to top
7






