Looking to buy a bread route. Down Payment?? Lending Club vs. GetMeCapital vs. Prosper vs. ...

[jordan954r]

Hey. I'm 24 and live down in South Florida... I am currently in the beer distribution business working "for the company", for almost 3 years now...

However doing sales and whatnot for "the company" as "just an employee" just makes these sales reps $50k-$65k /yr. 

I have been offered to "move up" from a merchandiser/sales assistant to a sales rep multiple times but declined... 

How I saw it was I can just wait it out, work hard, even with the lower yearly income as just a merchandiser, maintain my credit and finances, and then when the time came, I could get financed for the purchase of a bread route, and be a sales rep for the bread instead of beer, making $80k-$100k /yr. Be my own boss and have my own business, of basically what I already do, just a change of product from beer to bread...

With the going rates for bread routes being about a 3-4 year ROI...and having my youth on my side, this is a rather smart route to both a great paying career and an even better equity position before the age of 30.... These routes are like houses!!

My plan once acquiring a route, if my credit & work history allow, is to pay it off within 3-4 years.

I planned on looking for a route in the 80k-100k /yr range, but live off of just ~$20-25k yr/ and pay big chuncks of the loan off aggressively.

Now to the actual point of this topic..... I need FUNDING for the down figure on these routes......

For example, a route for about $170,000, might need about $60k-$70k down.....then the bakery finances the remainder

a route for about $300,000, might need about $150k down.....then the bakery finances the remainder

Who to choose, who would give more, who would give the best rate, who has any experience with either of these 4 lending groups?

And no, I dont have a house or any paid in full owned collateral to loan against, other than a car with a value of less than $10k...

Lending Club vs. GetMeCapital vs. Prosper vs. UnitedCapitalSource

Anyone have any experience/knowledge with SBA loans and bread routes?

Thanks.

-Jordan

[wa3more]

if i understand you correctly, you will finance 100% of the purchase. I think this will be hard to do.

Usually, buyers put down 50% of the price from personal savings, home equity or a loan/ gift from relatives.

SBA usually wants collateral such as a house and wants the business to have strong demonstrated cash flow.

A route can be a lucrative, rewarding career and you can sell it when you get older or want to retire.

Hope this helps.  I'll let someone more knowledgable comment. I wish you luck.

[jordan954r]

@wa3more

Thanks a lot for you input.

Any other infomation my fello myfico'ers ?

[fot1]

Prosper and lending club have caps at 20k or 30k.. And looking at the fees and interest rates I would pass on both.. Do you belong to a credit union? I would check them first.

[jordan954r]

@fot1

I do belong to a local credit union, its a smaller local based one, Bright Star Credit Union, www.BSCU.org

I also do have one paid off auto refinance loan of about $10k with Bright Star. So I am in, I guess you would call it, "good standings" with them.

Do you think a credit union would loan $50k-$100k? I know my past loans all combined arent even near $40k-$50k lol so.....

My current job/income is only of about $35k /yr.... going in there asking for 100 grand for a buiness and making only $35k /yr they'll probably laugh lol....But shouldn't they see the business's books and records that would show that now "my" income is now in upwards of $70k+ with obtaining ownership of a route...

Any further input guys ?