My husband and I would like to buy a supper club, but just about every bank (including the SBA) wants a 30% down payment and we only have about 10% to put down. Does anyone know of a bank or place that finances businesses that are defined as "risky" but with a lower down payment? Thanks.
2006-07-25 08:49:04 · 3 answers · asked by lynnski70 1 in Business & Finance ➔ Small Business
Associations may be a good avenue to explore. These organizations will address many of the thoughts, questions and concerns you'll inevitably have as well as many you haven't anticipated yet. See the source box for some relevant links.
Hope that helps! I wish you much success & happiness in all your ventures!
2006-07-25 08:54:30 · answer #1 · answered by TM Express™ 7 · 1⤊ 0⤋
Restaurants have an extremely high failure rate. One reason is because of poor management. Most banks will not give you a loan for this type of business unless you have a substantial down payment. You need to be careful when entering this type of business because you will have significant overhead. You also need to run the numbers with a good CPA before buying. If the numbers look good the bank may reconsider. If this is an existing business ask for financial records for the CPA review. If the owner refuses to hand over the records that is a red flag. Usually means they are not doing well and they want to get out fast before loosing their shirts. Proceed with caution. Good luck.
2006-07-25 16:16:49 · answer #2 · answered by Medical and Business Information 5 · 0⤊ 0⤋
restaurants have extremely high failure rates which is why the banks demand so much up front. you're only other option is a hard money lender or take out a lien on your house if you have one.
2006-07-25 15:52:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋