TKK Posted January 17, 2013 Share Posted January 17, 2013 Has anyone gotten a business loan? If so what do they require? I'm stuck at a point where I can't really expand due to income. How would they aprove you without a varifiable full time job? I was gonna try a personal loan but when I have gotten them I had a full time job with ytd and check Stubbs. Now I just have records, statements, and tax receipts. Would that be enough or do I have to have it for two years? I wonder how people get loans to start a new business. I'd just want like $10k I know I could grow like crazy with that Link to comment Share on other sites More sharing options...
indiana Posted January 17, 2013 Share Posted January 17, 2013 Getting a small business loan is tough, and it's gotten much harder throughout the last few years. I have received financing in the past, but I don't know how likely a bank would be to loan money to me with all their regulations and whatnot now. Typically a bank needs to see a solid business plan, positive cash flow and good business/ personal credit. If you have these things, many banks have a formal process that includes interviews and a few discussions about your business. For $10k (and with decent credit), I would just apply for a business credit card. It would limit some of the purchases you can make-- such as buying used machines with cash-- but would be easier to secure. Good luck! Link to comment Share on other sites More sharing options...
spdydre Posted January 17, 2013 Share Posted January 17, 2013 Personally I wouldnt get a loan unless it was a large route purchase of 100k or so. For a small operation and limited income I would just use the income you make from vending each month and reinvest it/save. Maybe get one machine each month if that is all you can afford and before you know it you will have enough cashflow to invest more/save. If you really need 10k maybe save 5k and see about getting 5k from the bank so you dont drop yourself in too big of a hole at your size. Link to comment Share on other sites More sharing options...
Vendfun Posted January 17, 2013 Share Posted January 17, 2013 I worked for a few banks years ago specializing in small business lending. It would be difficult to approve a loan unless you have 2-3 years of documented tax returns, long term contracts in place with a large percentage of locations and some solid cash deposits. Even with those it could be difficult. What you could do is apply or increase the level of Overdraft protection on your business checking account and use that for expansion. It may not give you everything you need, but should be able to supply you with 5-7K. Just make sure you pay it back on time or they will either take the balance from your account, or call in the entire amount, and close out the overdraft acct Not a recommendation, just giving a former insiders input Link to comment Share on other sites More sharing options...
treadmill Posted January 17, 2013 Share Posted January 17, 2013 Has anyone gotten a business loan? If so what do they require? I'm stuck at a point where I can't really expand due to income. How would they aprove you without a varifiable full time job? I was gonna try a personal loan but when I have gotten them I had a full time job with ytd and check Stubbs. Now I just have records, statements, and tax receipts. Would that be enough or do I have to have it for two years? I wonder how people get loans to start a new business. I'd just want like $10k I know I could grow like crazy with that If you are looking for a loan my suggestion would be is to go to a credit union (they are a little more easier to get a loan from). Now do not ask for a 10k loan but ask for a 10k line of credit. This can be good because after paying back line of credit you can use it again if need be. Over time you will not have to need this and you can either close it out or just save it for a rainy day. Link to comment Share on other sites More sharing options...
Vendfun Posted January 17, 2013 Share Posted January 17, 2013 treadmill: agree with you. Basically you and I are saying the same things just using a different vehicle. Lines of Credit are easier to obtain than a loan. While the $ value may be smaller, once you pay it down you can re-use it. Link to comment Share on other sites More sharing options...
TKK Posted January 17, 2013 Author Share Posted January 17, 2013 A line of credit is like a credit card? Wouldn't they still want check stubs? Link to comment Share on other sites More sharing options...
treadmill Posted January 17, 2013 Share Posted January 17, 2013 A line of credit is like a credit card? Wouldn't they still want check stubs? You still have to go through the same hoops as getting a loan. They still need to see if you are credit worthy. Credit unions are not as stingy as banks are. Link to comment Share on other sites More sharing options...
indiana Posted January 17, 2013 Share Posted January 17, 2013 Treadmill is right about credit unions. A great option for loans between $5k and $15k. Depending on what you need, a title loan is another option. Some of my friends looking to start up businesses or otherwise fund small business costs have had positive experiences leveraging money from their 401k or other savings. While I believe this (was) can be a good idea--no matter where you borrow money from, a bank or yourself--consider WHY banks are so strict in lending nowadays. Be similarly restrictive in borrowing from yourself. If you cannot reasonably show (on paper) that you can pay the loan back, don't borrow the money. I think running the smaller route, saving and buying/spending later is often the best idea. Link to comment Share on other sites More sharing options...
mission vending Posted January 17, 2013 Share Posted January 17, 2013 Getting a loan as a small startup is difficult at best. Because you are looking to purchase movable equipment that in theory could be hidden the bar gets raised a little higher. Because of the previous loss history of the industry as a whole unless you are well established the bar is raised even higher. One option not yet mentioned is to look at a leasing company. Firestone Lease works with many vendors across the country and I think they also would consider a lease on newer used equipment. You could also look at Inland Finance, one of the Wittern companies but they only finance their own new or refurbished equipment. Link to comment Share on other sites More sharing options...
TKK Posted January 18, 2013 Author Share Posted January 18, 2013 I'm going to look at secured loans. I have a paid off 2008 Audi tt worth $24,000 Vw gti worth about $10,000 Nissan frontier worth about $15,000 still owe $5k And the vending crv worth like $6000 I'm sure they can do something since I have the titles. I've been selling my quads but no one is paying right now I still have 2 left worth about 9k Our income tax is coming but so is our new home I may just sell my bulk route and go from there I don't wanna have to buy a certain machine or get high interests Link to comment Share on other sites More sharing options...
dogcow Posted January 18, 2013 Share Posted January 18, 2013 take your worst performing location and relocate it, wash rinse repeat until you've increased the revenue on all of your equipment, then use the cashflow to expand Link to comment Share on other sites More sharing options...
Poplady1 Posted January 19, 2013 Share Posted January 19, 2013 If you have a relationship with your bank go in to talk to them. They would look at your records, consider the vending equipment as your collateral plus your cars etc. Just ask about getting a business line of credit. That will give you a little wiggle room to only spend what you need when you need it. They will want every piece of collateral you have for this loan so be sure to ask for as high a line as you can get. The interest rate might be high so be careful. Link to comment Share on other sites More sharing options...
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