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Intro to business loans

bankerbanker subscriber Posts: 2
edited October 2016 in Startup Funding
From startups in the earliest planning stages to established companies looking to expand, all kinds of businesses take out loans. Loans can be used for initial expenses, financing ongoing operations, or major investments in equipment. After qualifying for a loan, businesses make monthly payments that include a portion of the original amount borrowed - the principal - plus interest to the bank or other lender.


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    wildstormwildstorm subscriber Posts: 2
    What are some of the criterias in order to qualify for financing i.e credit score, years in business, sole proprietors, LLC, Inc?
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    MNGrillGuyMNGrillGuy subscriber Posts: 2 Member
    The most important criteria is your ability to servie the debt.  EBITDA/Total Debt Service will need to be greater then one.  A reliable history of EBITDA shows a bank you have done it and can continue to do it.  This is why banks don`t like lending to start-ups.  They have nothing to look back upon.  This is where Angels and VC`s come in (at much higher cost).  Without a financial history banks will then turn to your ability personally to service the debt.  More of a personal loan then a business loan. 
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    bankerbanker subscriber Posts: 2
    Thanks for the comment MNGrillGuy.
    Well said. Startup loans from banks are really de facto personal loans because there is no business history to examine. However, unlike personal loans, startup loans are issued in the name of the business and do build business credit history. Something to keep in mind as your business and its need for additional financing grows.
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    wildstormwildstorm subscriber Posts: 2
    Well I am thinking about applying at that site but I may end up not doing so. Yes I`m currently lookin for an angel investor but haven`t had any luck finding one. I;ve tried out the gobignetwork.com but haven`t yielded and solid offers other than a guy from Moscow Russia. I`ve also posted a request at guideye.com and have yet to even get a response. 
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    bankerbanker subscriber Posts: 2
    Most business lenders at banks will look for a personal FICO upward of 675, 2 year business history, positive cash flow, that you have personal assets (home is a big plus), NO bankruptcy, reasonable personal debt-to-income ratio, and a maximum loan size of 20% of gross sales, i.e., a company grossing $1 million/year may qualify for a $200k loan.
    Angel Investors are a tough find. If you do get lucky enough to land angels, plan on a funding period of 6 months plus.banker2007-8-28 15:59:17
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    stella12stella12 subscriber Posts: 0
    Gone are the days when living within ones
    financial limits was considered a virtue. Today it is thought well of
    people if they possess all the luxuries of life. Without becoming
    indebted much, people can easily get themselves the luxuries of life.
    Secured loans will be very helpful in this venture. Through secured
    loans, borrowers can get cash for purchasing several assets that their
    limited income would have rarely been able to sustain. A secured loan
    is an advance to the borrower by a loan provider. Homeowners are
    particularly preferred for lending secured loans.Personal Loans - The Loan Bazaar
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    IrishMooreIrishMoore subscriber Posts: 0
    That was a nice idea.Since the recession, individuals are getting more sensitive to their credit ratings and naturally more people have been boosting their credit ratings. The Fair Isaac Corporation, or FICO, reports that during the past year, roughly 1.4 million people have moved out of the bottom-most tier of credit scores. Fix your credit with an installment loan.
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    allianceonellcallianceonellc subscriber Posts: 0
    Business loans plays a very crucial to almost every business owners. Not only such loans can help one to start up a new business, but it has been found very helpful to existing business owners who are running short or low on money to fund up their business.
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    WalnutsWalnuts subscriber Posts: 0
    A secured loan is an advance to the borrower by a loan provider.
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    ReneePhillipsReneePhillips subscriber Posts: 0 Member
    Good everyone.
    My name Mrs, Renee Phillips, i am from USA CA , i am married, i have been searching for a genuine loan company for the past 2 years and all i got was bunch of scams who made me to trust them and at the end of the day, the took all my money and left me moneyless, all my hope was lost, i got confused and frustrated, i lost my job and find it very difficult to feed my family, i never wanted to do anything will loan companies on net anymore, so went to borrow some money from a friend, i told her all that happened and she said that she can help me, that she knows a loan company that can help me, that she just got a loan from them, he directed me on how to apply for the loan, i did as he told me, i applied, i never believed but i tried and to my surprise i got the loan in 24 hours, i could not believe my eyes, i am happy and rich today and i am thanking God that such loan companies like this still exist upon this fraud stars all over the places, please i advise everyone out there who are in need of loan to go for Mr. Robert .M. Clark Email via ; ( robert.clark071@gmail.com ). he did not know am doing this for him,but i just have to do it because a lost of people are out there who are in need for a loan., they will never fails, your life shall change as mine did.

    Thanks and Good Luck.
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    anushkachhakrabartianushkachhakrabarti subscriber Posts: 219 Silver Level Member
    A business credit is an obligation based subsidizing course of action that a business can set up with a monetary foundation. The returns of business credits might be utilized to store substantial capital consumptions as well as operations that a business may some way or another be not able bear. This kind of credit is normally transient in nature and is quite often sponsored with some kind of guarantee. Business credits for the most part charge adaptable rates of premium that are fixing to the bank prime rate or else to the London Interbank Offered Rate (LIBOR). Numerous borrowers must record normal money related explanations, for the most part at any rate every year. Moneylenders additionally for the most part require legitimate upkeep of the advance guarantee property.
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