How do I go about getting a one or two million dollar business loan?

Discussion in 'Business Advice, Questions & Discussion' started by Jshsilver, May 2, 2010.

  1. Jshsilver

    Jshsilver New Member

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    Just getting into starting my first business. Wanted to come here before I potentially wasted time talking to the wrong banks.

    Let's say I have $50,000 cash, good credit, a college degree, and a bullet proof business plan. What are the chances of me getting a large loan with this? If this is not good enough what else would I need to get the loan? Thanks for the help.
     
  2. seanstevens

    seanstevens Member

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    If you are looking for a serious business loan then you will need a serious business plan. You will need to invest in having one done professinonally and it will need to cover everything. As the loans get bigger then banks will want to see that other things have already been lined up, i.e. any permits required have been applied for and have a solid chance of being approved, companies are on standby so that any work can begin etc. They will want timelines of when everything will be up and running and turning a profit.
     
  3. danstat

    danstat New Member

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    I agree with Sean 100%. To the bank you are a huge risk. You have no track record of business success or business credit. The only thing they will go on is your business plan and being that it is for such a large amount they will turn that business plan into swiss cheese. Do not write it yourself, because there are things that the professionals see why a business plan will fail and apply that knowledge to cover those holes. If at all possible try to establish business credit with supply companies or based on your good credit apply for a business credit card and start to use and pay ontime.

    Good Luck with your business,

    Dan
     
  4. Fergal

    Fergal Premium Member
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    Welcome to Business Advice Forum Jshsilver. My suggestion would be to approach the banks one at a time. If the first one offers you a loan, great - you can then talk to their competitors and see if they can offer you better terms. If they wont give you a loan get as much feedback from them as possible. Ask them why they will not approve you for the loan and then tweak your presentation to the next bank, based on that feedback. That way you won't be wasting your time, talking to any bank, if they wont give you the money at least you will have received constructive feedback.
     
  5. alexcarlson

    alexcarlson New Member

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    Hi,
    Before you apply for protected business loans check out you borrowing capacity. Every business is different which means there will be no worldwide method to know the cost and therefore budgeting is important. This enables you to deduce whether you can afford secured business loan or not.

    Thanks
     
  6. fundbusiness

    fundbusiness New Member

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    Well, 2 million is a rather sizeable amount. the banks or lenders will want to see some "track record of sorts" before they even consider your loan. Secured assets, of course with help, or maybe with an experience co-signor.

    Try using a collateral or a co-signee. That might help
     

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