What to look for in a prospective client who is seeking new or add’l funding for their business.
Have they been frustrated with their existing lender? Are they looking for a lender? Take for instance a restaurant owner. These start-ups require at least 40% of their own investment. What does this mean, ‘their own investment’? Well it means this; If the cost to open up a new restaurant, which includes all the leasehold improvements, equipment, signage, professional services and other material costs to the start-up (not inventory or wages) is $250k then the owner needs to be responsible for $100k of the total. Seriously? A. Yes!
How likely is this to happen? A. Look around you, it’s done all the time. Call us to get your business started. Your primary concern is getting the business funded, not how we get it done…the same way we don’t ask you to show us how to run a restaurant…we both are too busy to learn another professionals skill sets. But, we will come into your restaurant , you can bet on that.
Business Lending Tips; obtain all the quotes for all the costs to get the restaurant opened. Keep all your receipts for everything you’ve done for the business – this is part of your investment. Catalogue and control your expenses. Here’s the must have’s though for any lender to engage your business; You must have good credit and a net-worth proving you are lendable. Don’t despair if one of these caveats are week, you just may need a partner. A partner can be equity and silent so long as there in partnership then you significantly increase your ability to borrow money and get the restaurant off the ground without the family’s money.