Expert: Marina Lando - 8/21/2003

Question
Dear Marina,

Hello and thanks for your time.

I'm currently very interested in opening up shop for myself. A friend and I plan to be partners in opening a small auto repair shop.

We have plenty of experience, and a good following, and feel capable of making it work, but are somewhat apprehensive about getting off the ground.

I'm sure that for the first few months (at least) business will be slow... and have always worried about how I would pay my bills until we started making money. Hoping you could shed some light on this subject. I'm guessing that this would be factored in to the original loan... and could use some advice on borrowing money.. and evn on how MUCH money would be necessary?

Any time and advice you can offer would be greatly appreciated, and thank you in advance.              docboxcar

Answer
Dear Kirby:

My first advice is about business structure. Corporation is a must in your case.
Reasons:
1)   Liability – you are going to deal with a lot of people.
2)   Loans – most of the lenders will not lend money to Sole Ownership or Partnership.

You also may consider LLP. It is easier to operate. For more information about different business structures and their advantages and disadvantages go to: http://www.blquest.biz/serv02.htm

Business plan. Write one. You will understand better what you need and what it takes to achieve. And most important: think about how this partnership is going to end. Always plan for the worst-case scenario.

Money (http://www.blquest.biz/serv01.htm):
1)   If you have good credit score (680+) but no collateral you are eligible for $5,000 - $50,000 start-up loan. Very easy to apply, no documentation required (some lenders may randomly request proof of income).
2)   If your credit score is 700+ you can apply for personal unsecured: $5,000 - $50,000. Very easy to apply, no documentation required (some lenders may randomly request proof of income).
3)   If you have credit score around 650 and collateral you can apply for SBA loan. The size of loan depends on the size of collateral.
4)   If you have bad credit and no collateral try Microloan: $100 - $25,000. http://www.blquest.biz/microloan.htm or talk to one of our partners: http://www.blquest.biz/money_halper.htm

You can check your credit score at: http://www.blquest.biz/serv04.htm

Another helpful links:
How to start company and build its credit rating: http://www.blquest.biz/start_business.htm
Business resources – a lot of interesting links: http://www.blquest.biz/busres.htm
Business-to-Business Marketplace – business insurance, merchant's accounts, etc. http://www.blquest.biz/B2B.htm

Good luck,
Marina Lando
Commercial Loan Broker, CFC
888-469-1505
mlando@blquest.biz
www.blquest.biz