I was just denied a $15,000 dollar small business loan from a local bank. I needed it to buy audio equipment to start a small DJ service business. It was denied because of lack of equity or collateral, and because I'm about $2000 in debt. (Note: I've been making monthly payments on all my debts.)
Would a personal loan be the better route? I don't have a full-time job, I just DJ for a local sound company, and regularly at bars around town, puting me at about $350 a week income. (because I just lost my day job.)
The reason I want a loan to buy my own audio equipment, is because if I was using my own, I'd be making at least three times as much---putting me at about $900-$1000 a week, at least. It doesn't even technically have to be made into a small business. I could just "work for myself."
SO---If I explain my plans and reasoning behind the personal loan request, and explain how I'm making payments on my debts.....How likely is it that I will be approved? What else should I do?
2007-07-26 08:24:06 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
You need to figure out what your debt to income ratio is. Add up all of your monthly debt and divide by your monthly income. This percentage is your Debt to Income. You want that number to be under 40%. Is the $2000 debt you're paying off delinquent? If so, this won't bode well with the banks. You may be able to get a personal loan but probably not without collateral and you'll also need verifiable income. Unsecured loans are usually reserved for those with the best credit scores and very low debt to income ratios. A business loan would require a detailed business plan and profit analysis.
2007-07-26 08:43:46 · answer #1 · answered by geistswoman 3 · 0⤊ 0⤋
1
2016-09-28 01:53:46 · answer #2 · answered by ? 3 · 0⤊ 0⤋
If your credit is good, you can get a loan and they won't really care what you're planning to use it for. They may or may not ask, but your answer won't play a part in whether or not you you get the loan.
2007-07-26 08:35:37 · answer #3 · answered by livemoreamply 5 · 0⤊ 0⤋
15 grand? That's more than triple what you need for a decent DJ setup.
You won't get a personal loan unless you have an excellent credit score.
2007-07-26 08:29:03 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Beware of Advance fee Loan scams.
my Advice: Don't deal with anyone from a foreign country and never use wire transfer servies..
2007-07-26 09:14:50 · answer #5 · answered by Mr. Blue 4 · 0⤊ 0⤋
Try:
http://bestcashloanoffers.blogspot.com/
http://bestdebtfreesolutions.blogspot.com/
Good luck!
2007-07-26 08:52:15 · answer #6 · answered by Andrew Russia 3 · 0⤊ 1⤋