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Am I eligible to get any kind of loan for starting a business?

Am I eligible to get any kind of loan for starting a business? Topic: Business plan for new business
June 24, 2019 / By Destinee
Question: I'm 20 years old and in college. I'm looking to start my own business. I absolutely hate school despite constant efforts to push through it. I'm looking to start a LAN Internet center (possibly with a coffee shop). Im gonna need at least 50k but probably closer to 75. I dont know much about loans. Before I walk into a bank I'd like to know if I even meet the requirements. Is there an age requirement? Do I need a credit score? (I dont think I have one at all. The most I have is school loans. I know I need a business plan. What else?
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Best Answers: Am I eligible to get any kind of loan for starting a business?

Camryn Camryn | 4 days ago
Considering the fact that 95% of all new businesses fail within 5 years of inception - you have little to no chance of getting any funding from a bank. Your personal worth must be at least 3 times the amount you wish to borrow - in this case - 3x75 - 225,000 in liquid assets - either a bank account or a paid for home/commercial property. (This is called Collateral) Your business plan must include all the expenses for at least one year of a mythical business, and show how you intend to 1) get business - 2) provide service - 3) Pay back the loan.
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We found more questions related to the topic: Business plan for new business


Camryn Originally Answered: What do i need to get a small business loan, i have exellent credit and a great idea for a business?
Here's the reality: when applying for a business loan, the business plan is NOT the first thing banks want to see. Sometimes, they won't even bother to read it What banks want to see are: - demonstrated ability of the business to generate revenues -- businesses that are already operating and have at least 2 years' worth of financial statements that demonstrate strong profitability. Business ideas are just ideas; not proven to generate profits - ability to repay the loan through collaterals and assets - solid management team: they want to know that the business will be run by someone who knows what they are doing - excellent credit history - your investment in the business: they want to see that you believe in your business enough to put down your own money into the business If you have the above, then prepare a business plan. No powerpoints please, they won't give you the time for a demo. You need a good executive summary (as that is what they're most likely read, if at all) PLUS solid, realistic financial projections/plans
Camryn Originally Answered: What do i need to get a small business loan, i have exellent credit and a great idea for a business?
If you are interested in getting a small business loan with bad credit, the first thing you must do is find out what's your credit history is like. If you don't know what your credit history looks like, how are you supposed to explain what's on the report to your lending institution? You need to know exactly what's on the credit report and account for every detail, well ahead of time .

Amalee Amalee
IN college? - no one is going to give you a busines loan unless you have a full time job already and a great business plan and dropping out of college won't help your cause any
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Wainamoinen Wainamoinen
Be ready to put up 30% of that $75,000 you need. No lender is going to assume all of the liability, especially with a start up.
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Wainamoinen Originally Answered: Business loan?how can i get capital to start a business?
20 years ago, a bank would have loaned you money. Nowadays though the economy is very tight and banks don't make loans based on a few pages long 'business plan'. Investors have their own plans as well, and they will use their money to make their plans come to fruition rather than invest in a fledgling 'business'. Owning your own business is not a 'cake-walk' or a 'walk in the park' either. Do you really grasp how much your tax burden will be ? It's really better to have a regular job and then open a business on the side in your spare time rather than go the full out 'businessman'/sole owner route.

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