What chance do we have of getting a loan?

Question

We're both 19, eagle scouts, and have perfect credit (never missed a payment on anything). We're looking to open a small café. I've been working as a barista at Starbucks for some time now and have been paying close attention to how the whole store works. I've learned just about everything about running the place. My associate works in sales at sears, and knows more about business and sales than anyone I know.

How likely is it that we'll be able to get a loan to open said café? Will our age turn them off immediately? Will the fact that we are both eagle scouts help anything?

We're both very determined to open this café.

Answer 1

How much do you need?

I'd suggest contacting the Small Business Administration, which exists to fund people like you.

If your parents will co-sign the loan, it can certainly happen. I would suggest talking to the bank that you currently holds your accounts and see what they say.

Be prepared to have details about rent, equipment, salaries, supplies and other things figured out. Don't forget profit. Show how you expect to get enough customers to make this work. Show how you will manage to repay the loan. Assume that the loan is for 10% annual interest. This is known as a business plan, and you should have it worked out.

If you don't need very much money at all, you could try financing this through credit cards.

Good luck!

Answer 2

In order to get a business loan, you need to have the following: at least 2 years of experience in the industry as a manager, if you choose a franchise to do, you may have a better chance of getting the business loan, you must have enough liquid assets for the lender to take you seriously, and your resume must demonstrate you experience in the industry. If you like I can send you more information on business loans. I am a commercial loan officer.