Question hello marinai have recently placed a bid on a restaurant that has been excepted buy the current owner. i have enough cash to pay them but i will need to apply for some start up capitol. what imformation should a have ready for the bank when i walk in.john
Answer Dear John:
Congratulation on your new purchase!
First of all: You are not applying for a START-UP. You are the new owner of the existing business and you will apply for working capital.
My advice: go to the bank before spending all your cash. Talk to them. Sometimes you have a situation when bank thinks that you spent all your money for purchase and now you get into troubles and want bank to bail you out.
You have to show them:
1. 3 years Business Tax returns
2. Year to date Profit and Loss Statement
3. Year to date Balance Sheet
4. Your resume – to show that you have experience running business
Explain that the purchase price is N dollars, you have cash and you need additional money for working capitals (do not mention a start-up loan – it is a different beast).
Bank will be more than happy to help client with money.
Good luck,
Marina Lando
Business Loan Quest
www.blquest.biz
