Comments on: How will financing be for me? http://aspenfinancialgroup.com/how-will-financing-be-for-me.htm Fri, 21 Oct 2011 00:09:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Chaos_Mngr http://aspenfinancialgroup.com/how-will-financing-be-for-me.htm/comment-page-1#comment-2285 Chaos_Mngr Fri, 05 Mar 2010 19:16:19 +0000 http://aspenfinancialgroup.com/how-will-financing-be-for-me.htm#comment-2285 First of all let me tell you how impressed I am with what you've accomplished so far in your young life :-) Keep up the good work. Your best bet is to look for a loan when you have the $ to pay it (ie now or very soon)... because once your main source of income (repo business) starts declining, then the bank's willingness to lend you the $ will too. Unfortunately that means you'd have to run two businesses at once (at some point) and definitely will have to disclose your current business practices/income/expenses etc. (have all your paperwork audited and checked BEFORE they do). Because you have the time/credit (and obviously the drive/know-how), I would definitely suggest going through SBA...The banks will not look down on you because of your young age or the length of "time in business" if your loan is SBA approved :-) However I must warn you that the SBA approval process is lengthy (and paperwork filled) because they're technically "cosigning" the loan with you and will be liable if you defaulted (or your business failed). If you start soon (while you still have a decent income) your chances would greatly improve since you won't seem "desperate" and you'd have the time for all the "revisions" you'd have to make to your plans. They will require formal business plans that their counselors will be more than happy to help you write. And by that I really mean "formal". There are 5yr projected income/expenses involved, market research etc. Go see the them. Get the process started now (or very soon)... it will be worth it. First of all let me tell you how impressed I am with what you’ve accomplished so far in your young life :-) Keep up the good work.

Your best bet is to look for a loan when you have the $ to pay it (ie now or very soon)… because once your main source of income (repo business) starts declining, then the bank’s willingness to lend you the $ will too.

Unfortunately that means you’d have to run two businesses at once (at some point) and definitely will have to disclose your current business practices/income/expenses etc. (have all your paperwork audited and checked BEFORE they do).

Because you have the time/credit (and obviously the drive/know-how), I would definitely suggest going through SBA…The banks will not look down on you because of your young age or the length of "time in business" if your loan is SBA approved :-)

However I must warn you that the SBA approval process is lengthy (and paperwork filled) because they’re technically "cosigning" the loan with you and will be liable if you defaulted (or your business failed).

If you start soon (while you still have a decent income) your chances would greatly improve since you won’t seem "desperate" and you’d have the time for all the "revisions" you’d have to make to your plans.

They will require formal business plans that their counselors will be more than happy to help you write. And by that I really mean "formal". There are 5yr projected income/expenses involved, market research etc.

Go see the them. Get the process started now (or very soon)… it will be worth it.

]]> By: Joseph http://aspenfinancialgroup.com/how-will-financing-be-for-me.htm/comment-page-1#comment-2286 Joseph Fri, 05 Mar 2010 19:16:19 +0000 http://aspenfinancialgroup.com/how-will-financing-be-for-me.htm#comment-2286 Your history sound like you're doing well and you're a smart guy. good for you. BUT....Do not approach a bank first. Big mistake. You had the right idea. Go to the SBA first. Why? All the banks are nervous. Even the big ones like Chase, etc. Nervous. And if perchance you get denied, that denial is on your history. Not good for the SBA to see. Not good at all. It could be the straw that breaks the camels back. You go to the SBA first. Long process, but worth the time. I don't see big problems with them. AND, even if they deny you and you turn to the banks, the banks don't regard an SBA denial as anything. Their attitude is that the SBA is a 'tough nut to crack anyway'. That being said, I have to expound. SBA applicants are categorized by the SBA. the most promising category is the 'minority based enterprise'. The always get preferential treatment. You have the history, you have the cash, and you have the experience to be successful. But if you are not minority based, then you have to get that way. If you are an African American, Asian American, Native American, or recently acquired citizenship, then you are minority based. If not, then there is one category that I didn't mention. Women, all women, are considered a minority by the SBA. so if you're not a woman, then you have to acquire a partner who is a woman. Preferably a relative who is willing to go the distance with you, is savvy, and knows the business world. A close friend or business acquaintance would be ok, but a relative as a partner is looked upon as a plus. Once you have a woman partner, you are automatically a 'minority based enterprise'. And of course, an African/Asian/Native American woman would be all the better. And in that instance, you'll get your SBA loan. Best of Luck. Your history sound like you’re doing well and you’re a smart guy. good for you. BUT….Do not approach a bank first. Big mistake. You had the right idea. Go to the SBA first. Why? All the banks are nervous. Even the big ones like Chase, etc. Nervous. And if perchance you get denied, that denial is on your history. Not good for the SBA to see. Not good at all. It could be the straw that breaks the camels back. You go to the SBA first. Long process, but worth the time. I don’t see big problems with them. AND, even if they deny you and you turn to the banks, the banks don’t regard an SBA denial as anything. Their attitude is that the SBA is a ‘tough nut to crack anyway’. That being said, I have to expound. SBA applicants are categorized by the SBA. the most promising category is the ‘minority based enterprise’. The always get preferential treatment. You have the history, you have the cash, and you have the experience to be successful. But if you are not minority based, then you have to get that way. If you are an African American, Asian American, Native American, or recently acquired citizenship, then you are minority based. If not, then there is one category that I didn’t mention. Women, all women, are considered a minority by the SBA. so if you’re not a woman, then you have to acquire a partner who is a woman. Preferably a relative who is willing to go the distance with you, is savvy, and knows the business world. A close friend or business acquaintance would be ok, but a relative as a partner is looked upon as a plus. Once you have a woman partner, you are automatically a ‘minority based enterprise’. And of course, an African/Asian/Native American woman would be all the better. And in that instance, you’ll get your SBA loan. Best of Luck.

]]> By: Turning http://aspenfinancialgroup.com/how-will-financing-be-for-me.htm/comment-page-1#comment-2287 Turning Fri, 05 Mar 2010 19:16:19 +0000 http://aspenfinancialgroup.com/how-will-financing-be-for-me.htm#comment-2287 Growing a business is a lot like raising a family. Initially all aspects of the children's lives revolve around the parents, but a gradual separation allows the children to one day stand alone. Business finances are a lot like that. http://www.quickloans.we.bs/ If you've been in business for a little while, you've probably already taken out at least one business loan. The initial business loan probably came from family members or friends and was used as seed money. They chose to make the loan because of their relationship with you and their confidence in your plan. Growing a business is a lot like raising a family. Initially all aspects of the children’s lives revolve around the parents, but a gradual separation allows the children to one day stand alone. Business finances are a lot like that.

http://www.quickloans.we.bs/

If you’ve been in business for a little while, you’ve probably already taken out at least one business loan. The initial business loan probably came from family members or friends and was used as seed money. They chose to make the loan because of their relationship with you and their confidence in your plan.

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