175k start-up loan

[Peterparkyr]

Hi all,

I am getting close making the jump to run my business full-time in 12 months.  I need about 175k in working capital to make the transition (and quit my job).  I currently have an AMEX business card and a US Bank business card totaling about 9k in business credit.  My business credit is only about 4 months old.

I want to apply for a 175k business loan in 12 months - what steps should I take?  

[sccredit]

You'll need assets in excess of that amount to justify a secured loan

[Falcon1871]

As of 10/18/2022, you will not get that much working capital. 

[Peterparkyr]

What should I expect to get in working capital?  And how do I get it?

I just talked to Newtek business solutions and the rep informed me that 200k is doable with at least a 650 fico2 score.  

Your response is contrary.   What am I missing? 

[Peterparkyr]

Is secured the only way to go in this case?   Are the assets used as collateral?

[WayneSki]

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@Peterparkyr wrote:

What should I expect to get in working capital?  And how do I get it?

I just talked to Newtek business solutions and the rep informed me that 200k is doable with at least a 650 fico2 score.  

Your response is contrary.   What am I missing? 

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A 650 credit score alone will not get you a loan, make sure to do extensive research on any of these off brand companies you plan on using...save yourself some headaches.

[Peterparkyr]

Thanks, what else do I need to get the loan,  aside from 650 credit score?

[Peterparkyr]

I'm really looking for guidance on how to move forward.   It's easy to respond with "you can't do it".  I appreciate all responses,  but please offer guidance if possible.   That's the propose of the forum.

I know that people have started small businesses with loans.  How did they do it?  How can I do it?  What steps should I take if this is a goal for me?  I am doing other research as well,  but have always found these forums as a good, helpful, and reliable resource!   😊 🙏 thanks! 

[Peterparkyr]

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@WayneSki wrote:

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@Peterparkyr wrote:

What should I expect to get in working capital?  And how do I get it?

I just talked to Newtek business solutions and the rep informed me that 200k is doable with at least a 650 fico2 score.  

Your response is contrary.   What am I missing? 

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A 650 credit score alone will not get you a loan, make sure to do extensive research on any of these off brand companies you plan on using...save yourself some headaches.

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Thx, I found this organization through SBA.  And yes,  I am doing extensive research (which is why I'm asking questions here and not just saying sign me up!).  If I want to get a "brand name" loan, what do I do?   What have others in my situation done?  Consider that I already have business credit.

[sccredit]

In order to qualify for that kind of amount you need to have an operating business with a track record, along with the assets to back it up. So, yes, the assets will be the colateral as long as they are currently unencumbered. Borrowing money without an existing business and without collateral to secure the loan is going to be extremely difficult, if not impossible. You can borrow money to buy an existing business assuming you have a down payment.

I looked up Newtek as I have never dealt with them and found this on their website:

WHO WE LEND TO

• Existing Businesses with 2-3 years of tax returns
• U.S.-based businesses that operate for profit
• Businesses with repayment ability from earnings
• The following industries: manufacturing, wholesaling, services, retailing, general and heavy construction, special trade construction, and more