Can people with little income and a good business plan get a business loan from the bank?
I have a very limited personal income and cannot raise much captial for my business plan from others and myself. I want to know if it is really possible for someone with a well laid out plan to get a small business loan from a financial institution? I am sure it is possible, but really a decent chance?
Honestly, it will be VERY HARD.
Banks will not even read your business plan, no matter how good it is, if you have limited personal income.
For one, they will require you to put up equity investment — they will not give you 100% of what you need but wants to see that you yourself has invested money in your business
Then they’ll look for collateral. They need to see that they can get something when you cannot pay your loan
Banks only want one thing — to get their money back, with earnings. Having limited income does not give them assurance that they can get their money back. What if the business fails? What if you cannot make it work because of limited experience in the business?
There’s so many what ifs, and if you cannot assure them that you can repay the loan and interest, then they’re not going to give you a loan no matter how excellent the business plan sounds like on paper.
December 26th, 2009 at 7:07 am
Sure you can. Go to many banks, if one turns you down modify your business plan and go to antoher. Also there are government loans for small business. Search that on the internet. Great luck and I hope you are successful. Remember me when your rich!
References :
December 26th, 2009 at 7:31 am
You want to get a good, solid overview of what it takes to acquire that business loan you need, especially if you are a startup. The essential element of what the lenders out there require of you can be wrapped up in the acronym, C. C. C. These are…
References :
http://www.thebusinessbest.com/article.cfm/id/46895
December 26th, 2009 at 8:10 am
If you have a good business plan , you can ask for a loan at Prosper, the ebay for loans. People may help you. More information at http://www.acreditlibrary.com/prosper.html
Government funding information is available at http://delg.org
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December 26th, 2009 at 8:48 am
Yes you can get loans. There are banks offering it. This is a site that provide you the reliable links in your area. This will help you a lot..
http://personal-loan-info.freehostia.com/
All the best…
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December 26th, 2009 at 9:18 am
Honestly, it will be VERY HARD.
Banks will not even read your business plan, no matter how good it is, if you have limited personal income.
For one, they will require you to put up equity investment — they will not give you 100% of what you need but wants to see that you yourself has invested money in your business
Then they’ll look for collateral. They need to see that they can get something when you cannot pay your loan
Banks only want one thing — to get their money back, with earnings. Having limited income does not give them assurance that they can get their money back. What if the business fails? What if you cannot make it work because of limited experience in the business?
There’s so many what ifs, and if you cannot assure them that you can repay the loan and interest, then they’re not going to give you a loan no matter how excellent the business plan sounds like on paper.
References :