Getting a small business loan, what should I be taking to the bank?

by page04z. Posted on Sep 10, 2020    1    8

First time poster. Hey all.

I'm looking to start a business this year. I haven't done much so far, mostly just brainstorming with close friends. Eventually, I'll reach the point where I'll need about $10k for some tech and advertising.

What should I be taking to the bank at that point? What should I have accomplished by then?

To give you an idea of where I'm at, I've commissioned a graphic designer for logo and business card design, I'm in the process of creating my website as well as a phone app that will help me create fast quotes for customers, I've got a good idea of what the short and long term goals are for the business, and have a targeted demographic for the business.

Appreciate any replies. Thanks.


Joe_Rock27 1

Are you assuming an app is going to cost less than $10,000?

Also, what's the business' product or service? Might help to reach out to someone doing the same thing in a far market to get a benchmark of what you'll need.

  page04z 1

My friend is a computer programmer who specializes in phone apps, he'll be creating it.

It is a kitchen and bath business. About 10k for some local advertising mainly, but I'll also be purchasing some programming tools for designing kitchens and baths.

effyochicken 1

You might be putting the cart before the horse here.. your goal is to take out an entire loan mostly for local advertising and build an app for... advertising. But your product/service isn't the app or the advertising?

The app is a tool you'll use when performing the actual work, which is designing kitchens and bathrooms?

  page04z 1

I was responding to the question about an app costing less than $10k, I was explaining it wont cost anything.

The second paragraph is explaining what the business is and what the money would mostly be used for.

I'm not building an app for advertising, it's for quoting.

calemedia 2

So typically small business loans are for established business that have a business credit score, you’re probably be looking at getting a personal loan and the only thing they care about is your income and credit score.

Unless your “business” loan is to buy a building to open a store or the loan is for an example lawn mowers or something they can repo and sell to get back most of the money Incase you stop paying your monthly payments I don’t see them giving a business loan

  page04z 1

So your answer for when is when I'm already established? I could go the personal loan route, I suppose that would eliminate the work into a business plan. Probably just lose the better interest rate.

kevinmichaellynch 3

I would suggest writing out a formal business plan and projections for how you will recoup the loan. Give yourself a plan and a goal with benchmarks.

I would also suggest itemizing your costs for the startup using an excel spreadsheet and be very detailed and honest with what you need the money for.

These are my best guesses for what to bring and what I would bring to a bank

madmez 1

Also Gantt chart; and tip from what my mentor told me; get your numbers right, then double it.