Quote:
Originally Posted by karburn
A solid business plan is essential if you plan to go to a bank. I spent many years in banking and most bankers have three basic questions, although they may phrase them differently: 1. How much do you really need to borrow? 2. How are you going to pay it back? 3. What do I get if you don't?
For the new start-up entrepreneur, be prepared to personally guarantee any bank loan - they will accept liens on your equipment as collateral, but they usually want much more in the way of security for the loan. Just don't mortgage the house!!  |
Word.
I`m hoping to start my own business these days (in detailing), together with my neighbour.
The guidelines are a bit different over here, when it comes to starting up, but your relationship with the bank is just as important.
We`ve decided to start relatively small in the beginning (a year or so, depending on the market), so we don`t need to borrow the world, but we still have to personally guarantee for the whole amount, regardless of business type.
Luckily, we`ve both been granted the loan we need, so I`m hoping for the best!
AND: your many posts have helped me a LOT, togwt, thank you!
