College graduate looking for funding...

justinboyd101justinboyd101 Posts: 11subscriber
edited December 2008 in Startup Funding
Greetings,
 
I`m a college graduate looking to open up a video game retail store. Right now I`m looking for funding and I`m guessing I`m going to need to take a loan out. But now that I`ve graduated from college I`m 100k in debt from student loans! This business is between me and two other friends who are also college graduates, and are in debt from student loans. This venture is going to cost about $150k. Will a bank even give me a chance let alone the loan we need?
 
Thanks,
 
College Grad

Comments

  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
     
    Some lenders treat student loans a bit differently, but without collateral and/or other income sources, this could be a challenge.
     
    What will the capital be used for?
  • justinboyd101justinboyd101 Posts: 11subscriber
    Thank you,
    I think we are going to go with an Angel Investor.
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    Have you found the investor(s)?
     
     
  • justinboyd101justinboyd101 Posts: 11subscriber
    No not yet. I still need to develop the business plan. I know exactly what I want to do I just have to get it organized. Right now I`m working towards a business retail certificate. Once I have that I can talk to distributors about prices so I can finally develop a more accurate margin for necessary funds.
  • beheronbeheron Posts: 0subscriber
    Check out some peer-to-peer lending sites such as http://www.lendingclub.com/beheron12/30/2008 8:59 PM
  • startuphelperstartuphelper Posts: 2subscriber
    Justin, you are correct to be concentrating on writing your business plan. That should be your first order of business. The business plan will help you determine if your idea is viable. It will also help you determine how much funding will be required. $150K might be low if  you are going to need to purchase inventory.
     
    A loan will probably be out of the question. SBA loans require collateral, 20% of the start up cash coming from you, excellent credit history and industry experience. Since you and your college buddies are recent graduates I would assume you don`t meet the requirements.
     
    In order to attract angel funding you will need a great business plan. You`re on the right track, just keep your expectations realistic and keep researching. Check out my website below for detailed start up help.
  • adamcadamc Posts: 11subscriber
    This is funny I am actually going to be in the same boat as you in two or three years. I am a senior right now in highschool and will be graduating this spring and then going for business management for two years.
    I would say if I were after reading what Startuphelper said that you need 20 percent of the total funds needed if you could get get a 30 thousand dollar loan from either a few family members or the bank then you could look at the SBA.
    Good luck and please tell us how the progress goes.
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