Business loan question

Discussion in 'Growing and Managing a Business' started by tcozad07, May 1, 2011.

  1. tcozad07

    tcozad07
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    So heres my question. I'm currently living in Iowa, but am considering open a business in California.

    Now I will need a business loan to fulfill this business idea. I only plan on bringing enough money for 2 months rent/living necessities in California, so I would need the loan ASAP.

    Is it possible to set up a loan in california before it is my official residence so that I could receive the money as soon as I arrive in California?

    If not, would I be able to take out the loan from an Iowa bank, but open the business in California?

    Thanks for any insight.

    Tim
     
  2. Fergal

    Fergal
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    Welcome to Business Advice Forum Tim.

    Most investors or banks will be reluctant to invest or to lend money to a business, unless they can see that the business owner is also investing (by way of initial funding or sweat equity) in the business themselves. Hence, they may be unwilling to lend you money to cover your living expenses, from such an early stage in the business.

    Have you completed a business plan for your new business? Most banks would want to see a business plan that outlines how you will make enough money to repay the loan, before they will consider lending to any business. If you'd like some pointers on how to write a business plan please let us know and we would be glad to help you.

    In summary I'd suggest that you write a business plan and then contact your local banks and see how they react to it.

    Good luck with it and please do post back with your thoughts and to update us on your progress.
     
  3. amir100

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    For the loan content their local Gov that is the who help you for loan or any one bank gave you some money after complete verification no other way for you.
     
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  4. tcozad07

    tcozad07
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    Thanks for the responses everyone.

    Upon further research, I realised that a business plan was necessary. I've begun to list everything that will be necessary so that I can figure out costs for each necessity, and therefore know just how much it is I will be loaning.

    It is a very complex list to overcome though! I figured it would be best to get the loan from a bank/invester closer (within state) to my business.

    With that said, is there any tips or recommendations you can make as to what I should be adding to this list? So far I've considered security ($5,000/month?), Leasing money ($2,500/month for roughly 1,000 SQ FT space), Business Insurance (1,000/month?), loan repayment ($1,000/month), Business savings ($1,000/month).

    Ok, now the business I am looking to go into would be opening Medical Marijuana Dispensary. Security is a must in California so hiring guards is required. Any insight as to the starting wages for a single guard per day, 9 hours a day? I intend to call around, but any help will be greatly considered.

    I've researched loopnet.com for open leases in the Long Beach, CA area that I think look hospitable for a dispensary.. and $2,500/month is the average I came up with for a 1,000 SQ FT space. Is there any thing else to be considered when figuring out a lease price? Such as a deposit? I intend to research insurance farther because I know that will be a requirement, but anything else?

    Speaking of insurance, I'm working on an insurance quote now, but does anyone have a rough estimate for simple liability insurance for a business?

    So far, with what I have so far, I'm considering a $30,000-$35,000 loan. If this is the amount, how much do you think I should invest in able to be able for the bank to allow the loan? I have a decent credit score for being 22 (23 in august, which is around when I plan to begin the trip to California)..

    I only put $1,000/month down for Business savings because I really don't intend to "grow" much from the initial opening. I do realise there will be simple things I'll have to be buying monthly ex. paper, staples.

    I'm really hoping you guys can help me structure my plan though (the less attorney work the better). This is my first business venture, so I want it to go as smooth as possible.

    One more question, then I'll end the wall of text. Do you think planning to open a dispensary to sell medicinal marijuana will hinder my chances of getting the loan? My intentions are to follow EVERY guideline. I did just graduate from college with a degree in business managing so I'm hoping that will help.

    Thank you for any help! Greatly appreciated
     
  5. tcozad07

    tcozad07
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    Also take note that California is considered to be a much more open state to the medicinal qualities of marijuana. This is why I'm hoping it shouldn't be a hot issue as it is an easily profitable business.
     
  6. tcozad07

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    Yes I've since realised this. The problem is I'm not sure if the California government allows loans to Medical Marijuana Dispensaries.. Thanks for the heads up though.
     
  7. mysandyda

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    The first step you must do is to write the business plan because this is the thing banks look at, if your business plan will be good and your credebility is fine I dont think that you will have any problems with the loan you want to achieve.
     
  8. tcozad07

    tcozad07
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    Thank you for the positive encouragement. I'm in the process of setting up my business plan. Any tips for what should be included?
     
  9. Fergal

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  10. tcozad07

    tcozad07
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  11. Fergal

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    I'm glad it's helpful to you tcozad07. Please do post back if you have any questions or would like feedback on anything as you work through the business plan. Good luck with it.
     
  12. Yanni

    Yanni
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    THIS WEBSITE WILL HELP YOU A LOT. http://www.sba.gov/
     
  13. aapkae

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    why not try your friends and lawyers in California to help you out regarding this issue?
     
  14. Michael01

    Michael01
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    Contact your nearest Small Business Administration. They can help you by guiding you about various business loan lenders in your local area in California.
     
  15. Cora_A

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    This is a huge step, please gather as much information as you can so that you can make the smartest and most beneficial choice.
     
  16. creditreport

    creditreport
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    Have your checked your credit score? If not, check it before applying for a business loan.
     
  17. foxgeorge

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    Solon State Bank offers many different types of consumer loans for your financial needs. I am really sure that you would get your business loan within 2 months. Stefan Seuss is in the banking and investment fields. Stefan Seuss offers the support and advice to the international clients around the world and around the clock continuously for all the seven days in a week.
     
  18. EFG

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    Do You Have an urgent need for a personal loan or have workable business proposal but lack funds? enables individual and small businesses with a workable business proposal, but lacking sufficient funds, to borrow money.

    The Enterprise Finance Guarantee (EFG) is a UK government-guaranteed lending scheme intended to help smaller viable businesses and individuals who may be struggling to get loan.

    * Borrow from £10,000 to £1,000,000 or its equivalent in other local currencies for your business and personal needs.
    * Spread repayments over 1 to 30 years.
    * Fixed rates of interest available.

    You may need an injection of capital to help get your business off the ground, or cash for personal needs and to help grow your business once it's established.

    You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.

    Apply now.
    Contact By Email:
    [email protected]

    Contact by phone.
    Call us on +447031816909 (open 8am to 8pm Monday to Friday and 9am to 1pm Saturday) to discuss your application with one of our relationship managers.

    Our service promise:
    We aim to provide the highest level of customer service possible. However, if you experience a problem, we will
    always seek to resolve this as quickly and efficiently as possible.
     
  19. aman

    aman
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  20. creditreport

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    Firstly make plan to get a loan at low interest rates. If you have a good credit score, you can do it easily. After that write for a business plan and then contact your banks.
     

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