need some help

[bloop]

Ok i have a chance to buy a bingo hall for $15,000.I have 5,000 but need to get funded for the other 10,000.I do not have time to get a business plan going and if i did i would rather put my time into a more secure investment that would be more profitable.Anyway i feel this is a decent investment because even if it fails it is only 15,000 which is worth the risk but has the chance to turn a profit.My problem is i have a credit score of 690-700 depending on which they pull but i have only been working part time lately so when they look at my income and my past 2 pay stubs it's not going to look good at all especially with the way the economy is.Now to my question....i have somebody who will co sign for me who has great credit,makes good money,and owns a home but how far will a co-signer take me?I'm debating even trying for the loan because i'm almost positive i'll get turned down and would rather avoid the hit on my credit but i wasn't sure how far a co-signer would take me.So anybody who has knowledge in this area can you please give me a little insight?

[Nazreen]

Welcome to the Business Advice Forum Bloop.

When there's a cosigner involved in signing for a bank loan, you usually have limited loan options. Some banks might even require the cosigner to put up a collateral before they approve the loan so I'd advise that you choose a bank that doesn't require one.

With this type of loan, the cosigner takes responsibility in paying the loan if you default on paying it so don't go overboard and borrow more than what you really need. I think that you still need to prepare a business plan Bloop because even though you have a cosigner, you are still the one who's expected to repay it. Remember that what the bank officer really want to hear is that you're able to repay your loan.

[Fergal]

Welcome to the Business Advice Forum Bloop and thanks for joining.

I would agree with Nazreen that you should prepare a business plan. It really doesn't need to take that much time. You could sit down with a pen and paper for a couple of hours and write the basis of your plan. I think it would be time well spent and will help you clarify whether or not this opportunity is worth pursuing. Feel free to ask for help right here on Business Advice Forum, if you want some ideas or suggestions on how to complete your business plan.

Have you asked your bank how far you can get with the co-signer? They should be able to give you a strong indication as to whether or not they will approve the loan, without you having to make a formal indication.