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Old 05-10-08, 03:51 PM   #1
LSPlo
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Loan

I've finally decided to chase a dream and become self-employed. I'm going to need a loan to get everything started. The problem is that the loan is fairly large- $30,000.

I'll give you a basic idea of my credit situation. I don't own a home. The only debt I have out there is a student loan, and I've never been late on any payments. I have a credit card, but I keep the balance at 0.

I'm new to the whole loan thing. It may sound sad, but my mom set up the student loan for me. I've never applied for an auto loan (that's what bikes are for) or anything. I've done some Google searching and a lot of the sites out there look shady. I don't feel like entering my SSN all over the internet. My credit card is with Capital One, and I can get a 5-year loan with them for a fixed rate of 5.99%. "This offer is for 5.99% APR. If you don't qualify for this rate we'll automatically consider you for a rate up to 10.99% APR."

If I go to bankrate.com the rates are higher than that. Anyone more familiar with loans than I am? Would 5.99% be a good rate if I could get it?
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Old 05-10-08, 04:27 PM   #2
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I'll summon the resident finances guy for you. Fats can probably be of great help to you.
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Old 05-10-08, 04:44 PM   #3
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Old 05-10-08, 04:48 PM   #4
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Quote:
Originally Posted by LSPlo View Post
I've finally decided to chase a dream and become self-employed. I'm going to need a loan to get everything started. The problem is that the loan is fairly large- $30,000.

I'll give you a basic idea of my credit situation. I don't own a home. The only debt I have out there is a student loan, and I've never been late on any payments. I have a credit card, but I keep the balance at 0.

I'm new to the whole loan thing. It may sound sad, but my mom set up the student loan for me. I've never applied for an auto loan (that's what bikes are for) or anything. I've done some Google searching and a lot of the sites out there look shady. I don't feel like entering my SSN all over the internet. My credit card is with Capital One, and I can get a 5-year loan with them for a fixed rate of 5.99%. "This offer is for 5.99% APR. If you don't qualify for this rate we'll automatically consider you for a rate up to 10.99% APR."

If I go to bankrate.com the rates are higher than that. Anyone more familiar with loans than I am? Would 5.99% be a good rate if I could get it?
dude, let me be blunt. I have built a multi-million dollar biz, sold, and retired at 47 yrs old. So I have
just a wee bit of experience in the whole start from scratch thing as it is what I did. And so far, not
to rain on your parade, but from what you are writing, you do not come across as having a very good
plan set out. certainly none as regards money and financing.

the majority of business that fail fail in the first year, and most of the rest are gone by year five. Why?
Usually an inability to have 'staying power' -- the capitalization to allow the business to grow to the
size where it is self-sustaining.

When I started my biz in 1991, I blew thru $50k in in a few months time just getting set up. And there
was not much to show for that $50K either. It took me 1.5 years to get to where I could get a check
OUT of the biz, and in my first five years total, I earned slightly less than if I had stayed on my old job.

THEN things took off. I had some record setting years. Critical momentum carried me forward with
the help of a booming dot-bomb economy.

$30k, unless you are starting your own lawn care biz with you as the only employee, will blow away
in a flash. and even if you are lucky enough to GET the credit, most will want to see what YOU are
putting in yourself. I funded a few guys as repayment for business thrown my way by one of them
at a time I really needed it. They had no skin in the game, I wrote checks, and lost multiple six figures
in the end on a biz that should have made it based on ideas and model, but executed poorly because
the players had nothing at risk themselves.

If you would like some private help, feel free to PM me. I am ALWAYS willing to help someone out
who wants to get ahead in life -- gratis. But PLEASE, do not jump in blind into something with no
understanding of the planning or the costs.
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Last edited by Mr. Markets; 05-10-08 at 04:56 PM.
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Old 05-10-08, 06:17 PM   #5
substructure
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I need a loan too. I'm planning on starting my own "Blank Inside" greeting card shop.
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Old 05-10-08, 06:55 PM   #6
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I would love to start a small business myself, but I see that it will easily take $100,000 on up to have a reasonable chance at success. Guess I'll do the working stiff gig until I get the seed cash together.
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Old 05-10-08, 07:01 PM   #7
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I need a loan too. I'm planning on starting my own "Blank Inside" greeting card shop.
Thank you! I wish you many successes.
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Old 05-10-08, 07:02 PM   #8
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Before you go to the bank, have a very detailed business plan in place c/w expected 1st year revenues/expenses, plan to grow revenue, etc. Also, knowledge of your target customers would be an asset. A bank won't give you the time of day unless you've shown due diligence. Make sure you ask for enough start up money to cover at least your first year of business. 30K sounds a bit light ... unless that's truly all you'll need.

Good luck!
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