How do i go about getting a bussiness loan at age 18? please no make fun of answer?

Question

Hello i am 18 and i want to get a busines loan how do i go about douing that.... i am little informed i just want to hear opinions of fellow people that have gotten a bussines loan in order to get their busines started... thank you

Answer 1

First off...need to brush up on your spelling..someone wont take you serious if you cant spell common words...hence business ;)
Second, being only 18...its gonna be real hard to get a loan large enough to start a business due you have very little or no credit at all.
So you might what to put this idea on hold...until your a little older...and..got some good credit under you belt!

Answer 2

Not exactly. In order to get that kind of loan you'll need an established credit history and some personal assets. The bank will expect you to be putting in a good 20% of the expenses up front out of your personal money. Plus most major franchise businesses require a new owner to have a minimum amount of money available and a minimum net worth not including loans. Your best bet would be to either do a joint venture with your dad since he's already a business man, or start small and focus on saving as much of your profits so you can grow your business or open a new one later.

Answer 3

Start with a business plan so that you can prove to yourself and to a bank that you have the skills, experience, and resources for repayment of the loan. It doesn't matter if you are 18 or 28 or 38 or whatever age, the application process is the same. Until you have your business as a legal entity (paying taxes, registered with your county, sole proprietorship or partnership, etc.), your loan will be a personal loan. There's no way to put the loan into the name of a business until that business exists. Realizing that so many new businesses fail, it's not your age that will disqualify you as much as your need to prove that you won't be one of them. You will probably need a co-signer, collateral, or excellent credit. I would start with a personal credit card that is used ONLY for business purposes. Open up a personal checking account that is used ONLY for business purposes. Get all your legal paperwork together and have the business name added to the credit card and checking account. Make sure you seek the advice of an attorney and accountant to direct you to the next level. This process is recommended whether you are looking at a $300 loan, $3,000 loan, or $30,000 loan. Start off small... repay the loan... reapply. Until you have a legitimate business, any financial transactions can be held against you personally so make sure you cover yourself. For more business start up information ... FREE... contact your local office of COSE (Council of Smaller Enterprises) or SBA (Small Business Administration) that will help you with business planning, finance, legal, and other professional advice as an entrepreneur. GO FOR IT!!!

Answer 4

I wanted to share this with anyone who is in need of start up capital. If you have bad credit this company will still give you a loan. The catch? Your looking at an interest rate of about 20%. However, once you start paying off the loan your interest rate can drop and your monthly payments will go down. They also report to all 3 credit agencies. I borrowed $15,000.00 ffrom them last year and have had nothing but a positive experience with them.

This is not some "fly by night" company and I do not work for this company nor do I get paid to pass on any info about this company. I am simply doing this to help others who are having the same problems getting a start up loan.

You still have to work,(I put in about 50 hours a week on my webstore), and you still have to be honest. I do not know ANYONE who works 4 hours a day and makes thousands in a week. That's bull****!

I put my heart and soul into my webstore and I simply needed extra funds for inventory to sell. By getting this loan I was able to buy inventory and my sales went up because I had better items to offer and a lot more to choose from.

If your interested please email me at [e-mail].

I cannot give this company name out on here. I do not have their permission.

One more thing....I DO NOT MAKE MONEY FROM GIVING THEM REFERRALS! I make my money the old fashion way.....WORKING FOR IT.

Answer 5

Do not let anyone dissuade you... keep at it!!!

You will need a good business plan in writing (you can find templates and samples on line). Start with family, friends, etc. and check with the Small Business Administration (SBA) for loans and funds available. Check your local housing and urban develepent department (HUD) or rural development (RDA). See if there are grants available ($$$ that doesn't have to be paid back) or low interest loans.

Good luck!!!!

Try the websites below

Answer 6

I know you've done some research already. I'd like to offer you the following site also for you added research, because it tells the best way to prepare for asking for a business loan. It does not specifically reference 'age' as any kind of requirement, but you'll understand what the lender looks at when deciding whether to fund a business loan. It will tell you how to improve your chances and what not to do.

http://banking.about.com/od/businessbanking/a/smallbusinessln.htm

Answer 7

collateral is required. An individual/angel investor may loan money on an idea, or enthusiasm but a bank, by federal law, needs collateral multiple times over the amount of the loan

Answer 8

Unless you have a really good business plan and some credit history, its gonna be tough. The best way to go is to ask a personal lender. parents, uncles, acquantinaces?? Good luck.

Answer 9

you may have to get a cose Singer for the lone but you may have good enfe create may get on your one if your creat score is height en eff if not you can build your create scour by going to some stores that have there one create card and by some thing on then and making the payment on time for moth or two

Answer 10

Assets, without assets a financial institute would not consider your request. You have to own something that is equal to or greater in value than the amount of money borrowed.