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I've been researching a business concept lately as a young male (mid-20s). I wanted to find out if it is possible to get a loan without collateral ($100,000 or so)? What about loan/funding support for those with disabilities (I don't mean diabetes or ADHD-type)?
Is this another one of those threads where the OP has a "great business idea" but no capital to invest to put their idea in to a real business?
Absent a generous benefactor who can put all of the money needed at your disposal without having any concern for risk ...
The short and simple answer today is that no commercial lender will loan you 100% of the capital required to open a business. You must have a substantial percentage of the funds needed to make the business a reality ... your "skin in the game". You must also have the assets to cover repayment of the loan independently of the business; ie, you must be able to pay the money back whether or not your business ever generates a penny of revenue, let alone any profit. Many people do this by pledging all of their assets, typically investments or the equity in their home to guarantee the loan ... and the lender is looking for secure assets, not FMV of your equity position. They want something that is easily convertible to the cash needed to pay off the loan and if they have to dispose of assets, they want to have a comfortable margin in them for the risk they take.
In the meantime, you must be able to have the financial resources to live on. Given that few businesses show a positive cash flow in the near term, what will you do to meet your expenses until the business does generate that income for you? Many people don't take into account their personal cash flow requirements when they look at opening a business, and a lender is not going to loan you money sufficient to open the business and give you an income, too.
So, what have you got to put at risk to obtain $100,000? What do you bring to the table? A "great idea" that is nothing more than an idea or concept and $1.50 in cash will buy you a cup of coffee, but not much else. Being disabled doesn't change that ... unless you are looking at a business where the sales volume may be BID based and disabled gets preference points for the BID.
For example, I know a flooring contractor who put the ownership of their small business (on paper) into his wife's name. She is of American Indian descent, a wounded veteran, and disabled (a hearing loss incurred while on active duty), so she qualifies for every possible disabled preference in bidding on projects. It's won them a lot of BID work through the years over competitors who didn't qualify for the preference. They still had to put the business together on their own limited funds before seeking the market BIDS to bring in cash flow. They were able to apply for a business loan to expand their business, but not to open the doors to begin with.
I didn't know the price of coffee dropped. When did that happen? lol
It's the going rate for nameless coffee in a truck stop in my region of the country ... not for a name brew in a fancy logo'ed cup from a better purveyor. That will cost a bit more, won't it?
Put yourself in the lender's shoes. Would you fork over $100K to a 25-year-old who has come up with a "business concept" and nothing more?
You need a defined product/service and a detailed marketing plan before a lender will give you the time of day. Even then, you'll have to ante up with some of your own money, especially since you have no existing track record in business.
If I were you I would work a regular job, save your money, and develop your idea in the meantime.
why not...?
i got 150K as i was 22...
the guys got few mill back, and i sold my shares for few mill.
all of us was happy...
sure will do it again, if the guy is clear and strait !
Quote:
Originally Posted by Pimpy
Put yourself in the lender's shoes. Would you fork over $100K to a 25-year-old who has come up with a "business concept" and nothing more?.
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