Trying To Get A Loan

[blastoff]

Hello out there, I am trying to get a loan on an existing car wash. It's not working so well the banks are requiring 30% down do you guys know of any banks that will do better than this? Are there any grants for a first time business owner out there that any body knows about? Any advise would be great.... THANK YOU

 

[Waxman]

You may try to get an SBA guarantee.

That's what I did. The SBA takes second position to the main bank yet takes a significant portion of the risk, called an SBA guarantee.

The SBA loan/rate is based on the sale of a debenture.

Much paperwork is involved, so be ready.

You are trying to borrow at a time when money is tight, banks are scared, and nobody knows when a 'bounceback' might occur economically. Be patient.

Get creative; owner financing, SBA options, local community development corporations are possible sources for help. Try multiple banks. Once your business plan (complete w/3 years cash flow projections and break even analysis) and personal financial statement are prepared, why not make up multiple copies of everything in a nice binder complete w/photos of the carwash and property and shop it around??

Good luck!

 

[Bubbles Galore]

Waxman hit it perfect. I did the same thing with the SBA and it worked great. You will definitely have to shop around now.

 

[blastoff]

car wash

thank you.... big help

 

[Indiana Wash]

You may try to get an SBA guarantee.

That's what I did. The SBA takes second position to the main bank yet takes a significant portion of the risk, called an SBA guarantee.

The SBA loan/rate is based on the sale of a debenture.

Much paperwork is involved, so be ready.

You are trying to borrow at a time when money is tight, banks are scared, and nobody knows when a 'bounceback' might occur economically. Be patient.

Get creative; owner financing, SBA options, local community development corporations are possible sources for help. Try multiple banks. Once your business plan (complete w/3 years cash flow projections and break even analysis) and personal financial statement are prepared, why not make up multiple copies of everything in a nice binder complete w/photos of the carwash and property and shop it around??

Good luck!

Specifically, look to the SBA 504 loan program. I think you can get buy with 10 or 15% down through that program and 20 year rates. They also require the other bank to do a 20 year loan rather than a 5 year balloon. When I got mine, I got 5yr treasury plus 3% through the other bank. That means that when my rate adjusts every 5 years, I get 5 year treasury plus 3% again. That probably means I will not ever have to refinance.