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50k Business loan?

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Anonymous
Not applicable

Re: 50k Business loan?

But what is the likely hood of getting a 50k credit card? Very unlikley, lol!
Message 11 of 18
Anonymous
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Re: 50k Business loan?

does anyone know if it would help to add a third person to the joint loan? I have another person in mind who has much stronger credit and larger income than both of us.
Message 12 of 18
Anonymous
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Re: 50k Business loan?


@Anonymous wrote:
does anyone know if it would help to add a third person to the joint loan? I have another person in mind who has much stronger credit and larger income than both of us.

Would only help in terms of a business loan if they were officers in the business. Even then you would still run into the issues of the business finances that I mentioned before.  For personal loans you can’t combine incomes from someone other than spouse/domestic partner.

Message 13 of 18
Creditaddict
Legendary Contributor

Re: 50k Business loan?

No not 1 card with $50k... that takes year of building and increasing.
5 at $10k
10 at $5k
Maybe depending on your personal credit.
But based on your current that doesn't sound like it even after payoff.

Why $50 all at once? Can you work into it as the business grows?
Message 14 of 18
Anonymous
Not applicable

Re: 50k Business loan?

What do you have to back the loan?  Gold, silver, stocks, a house that is paid for.  Very few lenders will loan to start ups. Those that do want something to back them up in the very likely event you default. Sorry but over 2/3 of startups fail in 1st year. And if they like you they will still want lots of juice ie 24%. Do you have a well written business plan?   AS said before not trying to rain on your parade with your income  and scores it is very unlikely to get funded. If you have  written a good biz plan you might find a private investor.  The terms yo may not like but it depends on your business model.  Think Shark Tank. 

Message 15 of 18
Anonymous
Not applicable

Re: 50k Business loan?

I’ve been starting businesses for 30 years and never once needed a loan to do it. Ever.

Retail stores, manufacturing and online businesses without a loan or a credit card used.

How?

I worked 3 or 4 jobs at a time for 1-3 years and saved every penny with no tv or cable or internet or dining out or bars or concerts. Sometimes for years in a row to save up $100,000 startup capital.

A business usually takes 3 years before it can make a profit to pay off a loan.

Don’t get a loan. Get many part time jobs. Many. Move into a studio apartment with a futon and eat ramen and peanut butter for every meal.

You’ll have more luck and chance if you self finance.

I finance loans to startups now but require 150% collateral and a 48 month payoff at 16-20%. These are people with solid credit too. But banks won’t touch them. I have had to foreclose on people before and it isn’t pretty.
Message 16 of 18
Anonymous
Not applicable

Re: 50k Business loan?


@Anonymous wrote:

A business usually takes 3 years before it can make a profit to pay off a loan.


I finance loans to startups now but require 150% collateral and a 48 month payoff at 16-20%. These are people with solid credit too. But banks won’t touch them. I have had to foreclose on people before and it isn’t pretty.

 

ABCD your terms are much nicer than the offers my parents or grandparents used make. They typically took 50% ownership  and collateral as well requiring solid business plans.  Many just barely made it but once in while they hit home runs.  I quit when I had to foreclose and evict some one who defaulted and it turned in a war.    We still make a large part of income working as advisors with two regional small hedge funds buying non performing loans pools.  You either get current and we resell the note as current or we foreclose. And then we fix and flip.   


 

Message 17 of 18
Anonymous
Not applicable

Re: 50k Business loan?


@Anonymous wrote:
I’ve been starting businesses for 30 years and never once needed a loan to do it. Ever.

Retail stores, manufacturing and online businesses without a loan or a credit card used.

How?

I worked 3 or 4 jobs at a time for 1-3 years and saved every penny with no tv or cable or internet or dining out or bars or concerts. Sometimes for years in a row to save up $100,000 startup capital.

A business usually takes 3 years before it can make a profit to pay off a loan.

Don’t get a loan. Get many part time jobs. Many. Move into a studio apartment with a futon and eat ramen and peanut butter for every meal.

You’ll have more luck and chance if you self finance.

I finance loans to startups now but require 150% collateral and a 48 month payoff at 16-20%. These are people with solid credit too. But banks won’t touch them. I have had to foreclose on people before and it isn’t pretty.

I understand this view and for most cases it is true, but for those with seasonal or retail business' this isn't often the best case. I sell stuff on Amazon and 4Q is a HUGE part of annual sales. If I didn't have the funds to build up inventory I'd be giving up a lot of profit. That said I started this business as a hobby and grew it natually to the point I am with very little in startup capital.

 

I will say, no one is giving out personal/business loans to those with 500-650 credit scores and no history of income sufficient to pay it off.

Message 18 of 18
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