Hello out there, I am trying to get a loan on an existing car wash. It's not working so well the banks are requiring 30% down do you guys know of any banks that will do better than this? Are there any grants for a first time business owner out there that any body knows about? Any advise would be great.... THANK YOU
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Trying To Get A Loan
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Waxman
Super Moderator
You may try to get an SBA guarantee.
That's what I did. The SBA takes second position to the main bank yet takes a significant portion of the risk, called an SBA guarantee.
The SBA loan/rate is based on the sale of a debenture.
Much paperwork is involved, so be ready.
You are trying to borrow at a time when money is tight, banks are scared, and nobody knows when a 'bounceback' might occur economically. Be patient.
Get creative; owner financing, SBA options, local community development corporations are possible sources for help. Try multiple banks. Once your business plan (complete w/3 years cash flow projections and break even analysis) and personal financial statement are prepared, why not make up multiple copies of everything in a nice binder complete w/photos of the carwash and property and shop it around??
Good luck!
That's what I did. The SBA takes second position to the main bank yet takes a significant portion of the risk, called an SBA guarantee.
The SBA loan/rate is based on the sale of a debenture.
Much paperwork is involved, so be ready.
You are trying to borrow at a time when money is tight, banks are scared, and nobody knows when a 'bounceback' might occur economically. Be patient.
Get creative; owner financing, SBA options, local community development corporations are possible sources for help. Try multiple banks. Once your business plan (complete w/3 years cash flow projections and break even analysis) and personal financial statement are prepared, why not make up multiple copies of everything in a nice binder complete w/photos of the carwash and property and shop it around??
Good luck!
Bubbles Galore
Active member
Waxman hit it perfect. I did the same thing with the SBA and it worked great. You will definitely have to shop around now.
Indiana Wash
Member
You may try to get an SBA guarantee.
That's what I did. The SBA takes second position to the main bank yet takes a significant portion of the risk, called an SBA guarantee.
The SBA loan/rate is based on the sale of a debenture.
Much paperwork is involved, so be ready.
You are trying to borrow at a time when money is tight, banks are scared, and nobody knows when a 'bounceback' might occur economically. Be patient.
Get creative; owner financing, SBA options, local community development corporations are possible sources for help. Try multiple banks. Once your business plan (complete w/3 years cash flow projections and break even analysis) and personal financial statement are prepared, why not make up multiple copies of everything in a nice binder complete w/photos of the carwash and property and shop it around??
Good luck!
Specifically, look to the SBA 504 loan program. I think you can get buy with 10 or 15% down through that program and 20 year rates. They also require the other bank to do a 20 year loan rather than a 5 year balloon. When I got mine, I got 5yr treasury plus 3% through the other bank. That means that when my rate adjusts every 5 years, I get 5 year treasury plus 3% again. That probably means I will not ever have to refinance.
