Bussines question: If you want to own your own business can you get a loan from the bank and how much?

Question

could you get and around how much will a small business cost you say a resturant??

Answer 1

A bank will make loans to anyone for any (legal) reason as long as the bank thinks there is a high chance they will be repaid. The amount you are allowed to borrow to start a business would be very dependent on your experience in that kind of business. Your credit may qualify you for a personal loan with no collateral, but lenders like to have a way to get their money back if you don't pay the loan back.

My parents opened a restaurant a couple of years ago, and they spent over $100,000 just to get it started. They started with a building that was already equipped for the required vent fans. If they hadn't it could easily have been tens of thousands more.

Answer 2

Create a business plan first. Be specific. What sized place, how may square feet? How much will it cost per square foot? Utilities? Will it be new construction or renovating an existing space? How much to you plan to spend advertising in the first year? How many staffers will you need to open? What saleries?

This is why some folks say "no". The fact is, if you have a viable plan and can convince te bank that you will follow thryu and you have some collateral, you stand a chance. But you can't ask the question how much, witout a business plan. The answere is zero. Because if you don't know what you need, the bank wont give you a cent.

You have to figure out how much you need and then make a case for that amount. Your business plan should include the expense of repaying the loan.

Answer 3

The unfortunate reality is that most banks will not lend you any appreciable amount of money unless you have 2 years of tax returns, the business shows profit, and your credit is good.
In addition, many banks are reluctant to lend to restaurants, as they are considered more risky than other types of new businesses.

The amount of money you needs depends on what kind of restaurant you try to open.

My advice: Find someone who wants to sell you their restaurant, tell them how much money down you can afford, and then ask the seller to finance your purchase by taking back a promissory note on the remainder of the balance. This way you have financing, and you have an existing business with tax returns. This may even allow you to borrow from a bank sooner. Good luck

Answer 4

You need to have some skin in the game, meaning some of your own money invested. If the business failed, you would lose nothing. If the business succeeded, you would pay back the loan and do fine. Where is the incentive for the bank to make that initial loan though? Where is your incentive to make sure this business succeeds?

Answer 5

You can get a loan from the bank. How much money you need and how much they will lend you depends on many things. The best place to get started is S.B.A (Small Business Administration). Most every loan by banks is supported by S.B.A.

SBA.gov

Answer 6

The general rule of thumb is to borrow enough to keep your business running for the first year. So figure out rent, employment costs, food, inspections, utilities, etc. for twelve months. You will need to write up a business proposal for the bank. They will want to know your expected sales numbers and how you arrived at them. If you have a degree in business so much the better. Good luck!

Answer 7

You can get as much as you want
BUT you will need collateral.
The bank won't lend you money without you having a stake in it.

It's your company, only you can succeed or fail not the bank.

Answer 8

Zero if you don't have a LONG track record of running a successful restaurant.

Why would anyone, let alone a bank, give money to someone with no track record? (if that is indeed so..)

Answer 9

How much you can get depends on how good your credit is and how much collateral you have. A small restaurant (now I can't spell it either) is probably $100K

Answer 10

www.sba.org

small business administration can answer this better.