We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co

How much do my personal finances affect my chances for a loan?

MattTurpinMattTurpin subscriber Posts: 22
edited April 2009 in Startup Funding
I`m in the market for a new car. I saw a Toyota Yaris: small, fuel efficient, and only 13k MSRP. Ordinarily, I`d jump into the purchase head first. A friend of mine is the salesman there, and I can get a deal. However, these aren`t ordinary times. As you all know, I`m looking to get a loan for my upcoming cafe. The cafe will ideally be funded on a business startup loan. The car would require a personal loan. My question is, will having an outstanding 12-13k loan kill my chances for a 100k business loan? My credit is excellent - 726 last I checked. I don`t want to shoot myself in the foot over a new car. Any advice would be appreciated.


  • Options
    MattTurpinMattTurpin subscriber Posts: 22
    It`s going well - I`m actually in a position where I`m comparing loan offers, and not begging for loan offers. It`s an empowering position. I have an investor of 15k, I have one unsecured loan offer of 75k, and I have a traditional loan from my own bank that wants me to have 25% equity, but has no upper cap. The location is my current challenge. I thought the cash would be the hard part. The cash is easy with a good idea, and apparently I have one. The location is so crucial to my success, being a university-centric social cafe, that I really can`t afford to settle for anything less than perfect. I`m taking my time, not jumping into anything, and I`m going to put my consultants` 35 years of expertise to the best use by following their suggestions to the T. 90% of small businesses fail, and I think it`s because 99% of the people I`ve talked to seem to want me to rush. If people are inclined to rush, I can imagine the failure rate. Slow and steady - it`s winning my race.
  • Options
    ivoryajivoryaj subscriber Posts: 0
    Hi Matt I just saw your post. I thinks personal finances can have a big affect on weather you qualify for a loan. I have seen a couple websites that offer free applications for government grants that you don't have to pay back. Have you looked into this?
Sign In or Register to comment.