Local Bank Loan

**iKwak** · 09-02-2003 01:49 AM

I am in college at the moment with no experience in any fields yet.

If I manage to have a flawless business plan, would I be able to receive a business loan from a local bank (i.e. B.O.A. or Wells Fargo)?

Would they look at my G.P.A.?
What other informations would they need and ask for?

**Steve** · 09-02-2003 01:51 AM

I am not very experienced in this field, but a good thing that I know VC's look for is your team. If you can list some good connections that will be part of the business, IE. a retired creator of biggest business in my field.

From my limited knowledge the chances of a business loan (with no assets are quite low from a bank).

**iKwak** · 09-03-2003 07:29 PM

People with no assets- Did you start off your business with your own pocket or did your parents help the startoff?

If neither, then how?

**mike** · 09-05-2003 08:01 PM

Most likely if you have a soild business plan they will give you a loan, of course you need a good idea. I don't really think they will need your GPA, because I know people who dropped out of high school and are multi millionaires.

**Gummie92** · 09-11-2003 05:48 PM

Established banks are so hard to get approval for a business loan. Trust me, I worked at Wells Fargo for a while and our business bankers say that capital for startup is a tough cookie to crumble.

My friend started an online business back then, and had an awesome awesome business plan. What he did was buy a list of leads of investors who had 20,000 to 100,000 in their savings earning only 4% and wanted to put their money in more promising projects and ideas rather than the unstable stock market. He mailed out introduction letters, gave personal presentations, and his business plan with solid growth projections blew them away and he has 2 silent partners now. Just an idea for ya.

I've also found getting money from credit cards and "personal loans" are much easier. What line of business are you getting into??

**Karen** · 09-11-2003 06:34 PM

Originally posted by Gummie92

What he did was buy a list of leads of investors who had 20,000 to 100,000 in their savings earning only 4% and wanted to put their money in more promising projects and ideas rather than the unstable stock market. He mailed out introduction letters, gave personal presentations, and his business plan with solid growth projections blew them away and he has 2 silent partners now. Just an idea for ya.
into??

This is a very good idea, for so many reasons. Joint ventureship, silent partners, and multiple investors is a way to raise the capital.

In some cases it is easier to attract several people who provide funding, than finding one who provides all the funding.

As well, it depends what business you are starting. Online business are extremely difficult to fund based on the fact that lenders perceive the business as a vision with no tagible products. In their minds it is hard to secure something that is virtual, what would they collect for collateral if they needed to?

Best wishes,
Karen

**Gummie92** · 09-12-2003 04:10 PM

That's so true, Karen - they need more collateral than a simple web domain. If you have a lot of equipment that you can tie to the contract, a lot of references and good business contacts, then it could be worth their while. Especially with the conditions of the economy and the dot com destruction, it's gonna take a lot more than an idea to bring this to fruition. You'll need all the artillery and ammunition to feed these investors - you can do it!

**moxsum** · 09-16-2003 02:03 AM

Originally posted by iKwak
I am in college at the moment with no experience in any fields yet.

If I manage to have a flawless business plan, would I be able to receive a business loan from a local bank (i.e. B.O.A. or Wells Fargo)?

Would they look at my G.P.A.?
What other informations would they need and ask for?

No one has a "flawless" business plan. Remember that!

**Alex Singh** · 09-16-2003 06:06 AM

Haha, I was about to say there is no such thing as a flawless business plan.

What the bank wants to see is:

-Is your plan feasible, does it make sense and have a proper foundation and good merits

-Make sure the financial section of your plan is loaded with good and sound information. Cashflow Forecasts, Fixed and Variable operating costs, everything. This is what they really want to see - if you have your head on straight when it comes to the business' operations and what it uses with its money. If this section isnt dont properly then you can kiss it good bye.

-Collateral: You have to have assets that the bank can seize if your business goes bankrupt so that it can regain its investment from you. If you don't have any you may have to ask your parents.

Hope that helps,

**SLA** · 09-20-2003 11:45 AM

Yes. I think you should at least attempt to get a loan from a bank.

And if they don't give one to you, I think finding many investors would be a fantastic idea!

FANTASTIC IDEA!

**rs9996** · 05-08-2009 02:18 AM

I can help with start up unsecured business loans. please PM for details.

**Mega B** · 05-08-2009 02:23 AM

@rs9996 this thread is over 6 years old why are you post on it,it is starting to look like spam !!!

**R3Brokerage** · 06-10-2009 01:08 AM

Banks usually have the same process in reviewing your application. Startup businesses can be one of the hardest businesses to get a loan for.
Not to steer you away from starting your business, but do you really know everything there is to know about what your getting yourself into? I suggest speaking to a small business consultant and/or accountant/analyst. Our team has our 35-40 years experience in business strategies and underwriting for five different banks.
We can give you a better idea on your readiness for starting up the new business along with improving your chances on getting approved for a Startup loan.

**coolJune** · 01-06-2011 10:49 PM

It seems that it was hard to find a business loan for the capital of a small business. Much better to talk with some finances experts.

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