do banks give you loans on small business that havent even been established yet?

Question

i found this really good location for a resturant. i think it will be huge profits. the building is closed down. will a bank give me a loan to open a small business like this even though its not operating and im not buying the property itself. got a business plan,will it work? please help

Answer 1

A business plan explaining what the business is is sometimes meaningless if the business does not exist yet, and you don't have any experience in the industry. I've seen bankers who wouldn't even read the business plan when the entrepreneur has no experience whatsoever in the industry.

However, if you're applying for a loan and if it is a big amount, banks and even the SBA may consider these factors

- Your business credit (but you have none) or personal credit history (it has to be great)

- Your background and experience in the business -- in my experience, this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don't have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you

- Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application

- Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you

- Condition or terms of loans. Banks would want to know three important things: "How much money are you requesting? What will it be used for? and For how long will it be needed?" Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail.

Answer 2

If the only problem you have is that the business is not opperating yet, then yes, you can actually have a small business loan. In fact, this is the purpose of a small business loan. To help you get started, right? You say you have a business plan, it better be very good, because banks tend to offer loans without asking too many questions if they believe the business will become successful.

Answer 3

Yes, you can get a start-up loan but it is not that easy. Having a business plan helps a lot. You should also have some collateral like owning your own home, or some other way to prove to the bank that, if the business is not successful, you can still pay them back.

Answer 4

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