Business loans

[jojosnails]

Hi geeks,

I have recently (and unexpectedly) left my job, meaning I am now currently just doing mobile nails. I am not hugely busy at the moment, everyone saving for Xmas I think.

There is a salon near me that is for sale. It makes a decent amount of money already with 2 therapists, so I think I could add to this bringing my nail skills in to the business. Rent, business rates are very good.

My question is when going to a bank to discuss a business loan, do they take into account what your current wage is? As at the moment mine is not great but I think this business that is for sale could be a great opportunity for me.

Any help would be greatly appreciated, as I would hate to go to the bank if I haven't got a cats chance in hell of getting anything anyway!

 

[souz]

you would have to show the bank that you have money to put in and not solely relying on the loan and that you can afford to support yourself whilst setting up. Obviously any equipment etc you have already would go towards your input. Start writing your business plan ready to take with you and dont forget to put what you could add to the business that it doesnt already have and that would have an impact in takings thus making it a viable business venture x

 

[Tomme]

you would have to show the bank that you have money to put in and not solely relying on the loan and that you can afford to support yourself whilst setting up. Obviously any equipment etc you have already would go towards your input. Start writing your business plan ready to take with you and dont forget to put what you could add to the business that it doesnt already have and that would have an impact in takings thus making it a viable business venture x

As above.
You rarely get seen with a business loan, the business plan has to do it all for you. If it looks like they will get it back and have no worries that it may fail your in with a chance.
Is it a large sum your after or just something to start with? If its only a lower amount could you not ask friends and family to help out, work out a repayment date for each? That way your not paying interest or a early repayment fee.best of luck with it whatever road you choose xoxo

 

[jojosnails]

Thank you both for your feedback. The amount this business is selling for is too much to borrow from friends and family unfortunately. Think I'm going to have to keep saving, as I don't have a large amount saved at the moment so from the bank's point of view I think they would probably say I'm relying too much on the loan.

 

[Tomme]

Thank you both for your feedback. The amount this business is selling for is too much to borrow from friends and family unfortunately. Think I'm going to have to keep saving, as I don't have a large amount saved at the moment so from the bank's point of view I think they would probably say I'm relying too much on the loan.

Go and ask anyway, the worst they can do is say no.
If you show enough passion and that the business will make enough money to cover all costs and be profitable they may give you the loan. Never give up before you have even begun xoxo

 

[jojosnails]

Go and ask anyway, the worst they can do is say no.
If you show enough passion and that the business will make enough money to cover all costs and be profitable they may give you the loan. Never give up before you have even begun xoxo

Thank you for your words of encouragement, it's easy to feel unsure especially in the current climate! You've helped me feel better about at least giving it a try!