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Old 11-10-2016, 08:19 PM
 
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All the banks(majority),funding companies ALL want the start up to have some type of income or revenue. So it seems like the days of america helping business grow is OVER. I know times are different back in the days a start up can get fundings,based on an idea not revenue.Hopefully trump can make it easier for start ups/small business to get fundings/loans.
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Old 11-10-2016, 08:59 PM
 
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Quote:
Originally Posted by tyronejacobs0 View Post
All the banks(majority),funding companies ALL want the start up to have some type of income or revenue. So it seems like the days of america helping business grow is OVER. I know times are different back in the days a start up can get fundings,based on an idea not revenue.Hopefully trump can make it easier for start ups/small business to get fundings/loans.
We don't want to pump up a bubble, but there should be investment in more research and development. But this should be in the form of grants, not loans, because debt can cause a lot of strain in the enterprise later on. Plus an excessive reliance on debt only strengthens the system's unhealthy addiction to negative real interest rates.

However, it should be noted that excessive effort should not be required to get grants, because this results in money being wasted to, in effect, pay people to look for money...

I worry about low taxes causing problems with the federal budget even more.
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Old 11-10-2016, 09:07 PM
 
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Originally Posted by tyronejacobs0 View Post
Hopefully trump can make it easier for start ups/small business to get fundings/loans.
How? What can he do to make it easier?

The only real way to stimulate funding to small businesses is having someone guarantee the funds. Anyone can do that now, and if it was profitable the segment would be flooded with investors willing to back the funding. But, since not many are stepping forward, that means it will fall on GOVERNMENT to be the sugar daddy of the small business community. Are you saying you want more government welfare programs?
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Old 11-11-2016, 02:31 AM
 
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No, especially not on start-ups that barely have a 50/50 chance to succeed. It's not supposed to be easy to be given large amounts of money. If it was, then people would just take the money and not start the business.

Start a small business with money that you have, grab a foothold in your market, earn some respect, collateral and/or good credit, THEN borrow money for the next phase.

Any business idea that requires more money than what the entire lending industry will loan you is by definition NOT the right idea for you at this time.
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Old 11-11-2016, 08:15 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
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There is still plenty of money available for a new business. It just requires that the person applying have a sound business plan, collateral, and a proven history of successful employment and/or education in that industry to help demonstrate their chances for success. Someone without any assets who has worked in retail that tries to start a manufacturing business, for example, is not likely to get a loan. Someone with a lot of equity in their home, other investments, and has a business degree and has been the manager of a restaurant for 10 years looking for a loan to start a new restaurant is a much better risk for the lender.
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Old 11-12-2016, 04:28 AM
 
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Originally Posted by Rabrrita View Post
How? What can he do to make it easier?

The only real way to stimulate funding to small businesses is having someone guarantee the funds. Anyone can do that now, and if it was profitable the segment would be flooded with investors willing to back the funding. But, since not many are stepping forward, that means it will fall on GOVERNMENT to be the sugar daddy of the small business community. Are you saying you want more government welfare programs?
No but their alot of capital companies and banks have LARGE sums of money,they can do secure loans were if the loan isn't paid the owner looses his or her property.If you wanted to open a business wouldn't you need some type of funding to grow your business? Now a days its VERY diffucult for a small business to get anywhere without some type of assistance from the banks.We need more investors to step so it won't fall on the government that is why if banks and capital companies were landing loans we wouldn't worry about the government stepping in.
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Old 11-12-2016, 04:33 AM
 
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Originally Posted by SunDog77 View Post
No, especially not on start-ups that barely have a 50/50 chance to succeed. It's not supposed to be easy to be given large amounts of money. If it was, then people would just take the money and not start the business.

Start a small business with money that you have, grab a foothold in your market, earn some respect, collateral and/or good credit, THEN borrow money for the next phase.

Any business idea that requires more money than what the entire lending industry will loan you is by definition NOT the right idea for you at this time.
Have you ever ran or owned a business?Do you know how much time and money requires for a business to even gain revenue? Without funding it can take YEARS for the business to earn revenue. Granted its not suppose to be easy to be given large amounts of money true,its not suppose to be hard either. We have to balance both options, small business make up most of the work force in america and if small businessess can't gain any finanacial assistance from our banks, our economy will be alot worse then it is now.

But I do agree that having good credit is a plus however like I said revenue overrides good credit who would you rather lend money to, someone with good credit but little cash flow or someone with alot of cash flow but no credit or bad credit.
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Old 11-12-2016, 06:30 AM
 
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Originally Posted by tyronejacobs0 View Post
Have you ever ran or owned a business?Do you know how much time and money requires for a business to even gain revenue? Without funding it can take YEARS for the business to earn revenue. Granted its not suppose to be easy to be given large amounts of money true,its not suppose to be hard either. We have to balance both options, small business make up most of the work force in america and if small businessess can't gain any finanacial assistance from our banks, our economy will be alot worse then it is now.

But I do agree that having good credit is a plus however like I said revenue overrides good credit who would you rather lend money to, someone with good credit but little cash flow or someone with alot of cash flow but no credit or bad credit.
The problem is that you aren't looking at it from the bank's perspective. Think about it this way: Would you loan money to someone who was going to go to Vegas and put it all on black?

Banks are for-profit companies, not charities. If they took excessive risk, they'd either have to charge very high interest rates(in which case the business would be extremely dumb to borrow the money!) or simply lose money (in which case they'd need yet another taxpayer bailout).

I do not want another 2008, so I disagree with you. It is crucial that banks not lend to people at excessively high risk. Money does not grow on trees.
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Old 11-12-2016, 09:41 AM
 
Location: North Idaho
25,593 posts, read 33,664,957 times
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It's never been easy to borrow start-up money. I don't know where you got the incorrect idea that it used to be easy.

There are investors who provide start-up funds, but they take a big chunk of equity and they won't invest unless the business has already been put together to show that the idea will work.

Nobody but the fledgling businessman's own family will loan money for nothing more substantial than an idea. And it has always been that way.
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Old 11-12-2016, 12:58 PM
 
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It shouldn't be easy to get business loans, especially for start-ups, the risk for the bank is very high. If the government intervenes to make business loans easier I guarantee you it would create a bubble. What you could possibly do is get a revolving line of credit which are typically based on your assets and cash on hand, rather then business income. Similar to a credit card, but with much better rates.

When I first started my business, I talked to a couple banks about loans, neither would give us a loan, but one offered to do the revolving line of credit, and they were willing to give us $12,000, I forget the rate, maybe 6-8%. I ended up not accepting it as our start up costs were lower then anticipated. Which brings me to my second point, I would really focus on keeping your start up costs as low as possible, rather then getting a loan. Buy used equipment whenever possible, and what I did was spread out the purchases over 2 years. I knew I wanted to open a restaurant, so I started going to restaurants going out of business sales (there are a lot of them). I also only looked at locations that were previously restaurants, so to help remodeling costs stay lower. Existing exhaust hood system, saved $20-30K. I ended up spending about $50K on opening my restaurant. If I had gotten a loan and started with a vanilla shell locations, the cost could have easily been $200K, and then I would have had interest on top of my expenses and an additional monthly bill. My profits aren't incredibly high, but I have never lost money, not since day 1 of opening. My plan is to keep building up and moving to better locations (within a reasonable distance of where we are now). That concept can be applied to almost any business. Start small and build up, learn everything about your industry and gain valuable experience while you grow. Success takes time.
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