I'm hesitant to even ask.....?

Question

It seems all answers on this are very unintelligent but maybe someone out there will know and not just answer just to answer. I have a great opportunity to get in a up and coming company. The problem is I am only 24 and while I make decent money and have good credit I don't know who much I think I can get a loan for. Is it unreasonable for me to get a loan for about 500,000 that I can easily pay pack in 3 years? What are some of my options? Any INTELLIGENT answers out there???

Answer 1

There are a lot of variables -- you don't say what you offer for collateral or what your net worth is. $500,000 is a lot to loan someone with nothing, aside from a "promise" that you'll pay it back.
That also sounds like a lot of money in general to ask from someone to put into a company -- please be careful.

Answer 2

From the bank's perspective...How are you going to pay back 1/2 million dollars(plus interest) in 3 years? If you are banking on the prospects of this opportunity making money, then the bank is going to want to really go into the details.

But since most new companies either fail or don't make much money the first few years your chances are going to be pretty slim. You will either have to have the current income to back it up, or some major collateral to put up.

You only chance is probably going to be people who do "venture capital", but they are going to want a piece of the company in return.

Answer 3

First of all, you aren't very likely to be able to find a loan for that amount, especially unsecured.

Secondly, be very careful - a lot of "great opportunities" don't end up working out, even if they sound really good up front.

Not what you wanted to hear, I know.

Answer 4

You will need a very good business plan before you even approach the bank requesting that kind of money.

I think your chances of getting that loan are very slim.