Acquiring a buisness loan

[JDMontego]

Soon I will be presenting my business plan with my partner to the podium, and I have a few questions on what to expect. I have herd It's "not that hard" if you have a well prepared presentation. I have also herd it's next to impossible to get a loan for a new business unless you have personal financial assets (House, etc) Or some form of "collateral". Basically I am looking for some form of clarification on this from some of you guy's. Let's say the amount I'm asking for is $50,000.00

TIA

[Gt-R R34]

If you write your business plan like you have this post. GL.

50K or less, is considered Micro loans. Vancity would be your best bet for this options.

For that amount, 50K a lot of times these are small business, which in fact would usually never incorp. or ltd, and are solo props or partnerships. In these cases, you're better off using personal finances, as this would give you a easier chance at borrowing the money as well as your liabilities are on your persoanl assets anyways.

[JDMontego]

Originally Posted by Gt-R R34

If you write your business plan like you have this post. GL.

lol, your comment is warranted given the little info I had provided. I'm not wandering in and asking for a random figure, I've thoroughly devised a business plan. I appreciate the advice you have given.

cheers.

[impactX]

Can't just go into a bank and ask for an unsecured loan with a business plan.

[tiger_handheld]

Tell the bank what you are going to put in ( your own funds)

Tell them what you are going to do with their money ( break it down $ by $ )

Tell the bank what your exit strategy / payback strategy is ( sell the house, withdraw from rrsp/savings )

List all your liquid assets ( savings/GIC's/Bonds/TD's ). It will not matter if you have a killer equity portfolio cuz banks hate that shit.

Recheck all your numbers to make sure they are not pie in the sky - all most all entrepreneurs look at the world through rose colored glasses and are waaay to optimistic. If you have an accountant get them to look over ur biz plan.

if i were you i'd go to BDC before going to the local bank. they have lots of help on starting a new biz( a biz that will eventually have employees - if u plan to be self employed , they will not help you)

[JDMontego]

thanks for the responses guys