First, I will do all the research but I'm looking for advice. A freind and I will be looking at opening a business (a bar) in May or so of 2013 in Texas. I'm looking for adivice on the best loans to try for. I am a citizen of the Cherokee Nation (barely.LOL) and a disabled vet (again, barely. 10%). I'm just wondering what our chances are of getting a decent loan and where we might look. Backround, he has a truck he runs over the road and I work overseas currently. I've got my credit scores up where I think that won't be an issue. He is still repairing his after his wife has had medical issues. Oh, staying in the garden until we decide when we are going to buy. Thanks all.
The first issue will be its a "Bar" which is high risk for lending and liabilty.. Second is it will be a start up.. These will both be issues even with great personal credit.
How much do you need to borrow? Do either one of you have experience in the industry?
We both have a little experience, and there is a third that has been a tender for 20 years but she won't be a partner at first. And we are looking at existing bars that already have a TABC license. And everyone involved will be taking the TABC server test.
Your experience will be a factor in the loan decision and with little to no experience your unlikely to get a loan for that type of business. My wife and I do consulting for restaurants and bars and besides your possible loan issues you could possibly run into issues with transferring the liq. license into one of your names but that really depends on the town. Some require that the person in charge have experience in the industry and I say some not all and not the majority. That can be overcome by hiring a GM with exp. though.
Personally if you guys came to me looking for a loan no matter what your credit was I would say no knowing your background and lack of experience because that will increase your fail rate upwards to 90% or over.
Most people looking to open a bar,restaurant or nightclub usually get their money from investors or friends and family but again investors will only back people with a lot of experience within the industry..