Expert: Marina Lando - 8/19/2004

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