I'm going to be going infor an large expansion loan next week and I wanted to know thoughts on thepossible success of my loan.
I'm a sole proprietorshipand I've been in business for 18 months. I had a startup capital of 5,500dollars and I have not posted profits for 2008 or 2009 (breaking even).I'venever taken out a business loan before and I have a 720-740 credit score.
With that I have my Cashflow, Income statements, Balance sheet reports for both 2008 and the first two quartersof 2009.
I have a 13 page businessproposal outlining our plan for success, possible risks, and alternative plansof action.
The total amount ofexpansion capital I'm requesting is going to be 55,000.
What is my chance ofsuccess with this loan and what interested rates my a be look at. I'm a 26 yearold white male, so there are quite a few loan programs that are closed off tome.
Lastly, any other suggestions to increase my chances of a loan? Thanks.
BizResearcher | Window Shopper |
2/16/2011 - 11:05 am
It is difficult for sole proprietors to qualify for loans because the business is not recognized as a separate legal business entity apart from you. Therefore, you will actually be taking out the loan and it will be based entirely on your credit history and your ability to repay. You may want to think about registering the business as an LLC. The process is fairly easy and it doesn't usually cost that much. It also separates your personal assets and liabilities from those of the business unless you personally sign for them.
BizResearcher | Window Shopper | 2/16/2011 - 11:05 am
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