I and my partner are looking to open a franchise in the next six months and in the process of clearing up the rest of our credit along with saving six months for capital but we will need a loan under a new corporation. We are wondering due to the crisis if we should wait for a year after the dust settles or will the six months lenders might be more agreeable to loan for small business. Even though the financial crisis may clear up it is evident we are heading to a recession in which it might be better to stay at the old job or try for a higher paying job. My partner and i consider the franchise as recession proof and we are able to save until we open but we definately will need a loan to be able to open without piercing the corporate veil! I understand it may take 1 year to two years for a bank to look at you for a large loan but we are just looking for start up to go with our capital. We are applying for the corporation and credit clean up is definately in the works for our score but a little worried that we may have to wait indefinate for a loan. Any suggestions? I saw in the other emails bad loan.com may not be the thing to use after the financial crisis so we are wondering besides borrowing and saving ( no home sorry!!) what else can be done. Will the late for small business be long? By the way what exactly is a credit line for small business what is it used for ? is it the same as money?
You are defiantly going to want to have your scores at least to 620. Higher would defiantly be better. The loans are out there for people that have put together a good business plan and have th ability to turn a profit.
If You don’t have a plan in place I would do that first. It might not be a bad idea to seek a professional to help with it.. You should also be able to get a forecast of what new stores are making from the franchise company. If there are a number of franchises in the area you can most likely receive that information from a couple of the other ones as well. This will help to show the lender and yourself what you can reasonably expect to make and will show the likelihood of your ability to repay.
If you want to discuss any of this you can call myself or Dan at 800.709.5306
Good luck in your journey,
Chris
If you have a solid business plan and good credit, there’s still tons of money out there for you to borrow. The lines drying up are those to unqualified borrowers without savings, without good credit, without equity/collateral. I work for a lender and we’re still doing millions of dollars of business each day.
I would go to a local bank to get a business loan, definitely would not suggest using any type of on-line lender, use the smaller brick-and-mortar lenders. A line of credit is basically saying, we could lend you this full amount that you qualify for- but you can take what you want when you need it and pay it back at the market-determined rate. If you take out a line of credit from a lender that busts, your credit line is gone and you’d have to re-apply for another one somewhere else. If you had a loan, the terms would still be valid but would be sold to another bank for servicing.
the current financial mess we find ourselves in now ,and the tax payer will bail out is caused by poorly overseen lenders making bad loans to to incompetent and crooked businesses.they give all kinds of bogus paper as collateral which in the end was just paper. if there had been some oversight by government in the form of rules and regulations america would be in much better shape. so, having said that unless you have lots of collateral,or lots of cash say a third you should not be allowed to borrow for your speculation.or you should pay an interest rate so excessive as to make the project unworkable.you obviously don’t have a clue what your doing,or your being scammed ,there are no recession proof anythings,put your money in savings and go to school before you learn a hard life lesson.