My wife and I are going to undertake our first small business venture, a gas station c-store, and are looking for ways to get the necessary capital.† We are going to purchase an existing station which is highly favorable to both us and the bank.† We knew that we needed to put down 20% but news that we will most likely need to put down 30% is a serious downer.† We donít have that kind of cash. We have excellent credit and zero debt accept for a mortgage we are current on.† What are the best methods to get an additional loan or advance of about 30k-50k?† Ideas we have been looking into are local credit union, second mortgage, home equity line, and credit card adv.†
We plan on throwing as much business profit at the secondary loan as we can to pay it down in short order.† What would be the best method in your opinion to help fund this business purchase in addition to a standard small business bank loan?
Luniz97 said: The 2nd on your house will be the cheapest †† But if the business goes south, you lose your house.
Senior Member - 3K
posted: Sep. 5, 2013 @ 6:36p
Is the seller financing the 70%? If a bank is lending you the 70%, they're probably not going to want to borrow the other 30% somewhere else. Ask your friendly local banker.
Senior Member - 10K
posted: Sep. 5, 2013 @ 7:38p
SmBizJames said: We knew that we needed to put down 20% but news that we will most likely need to put down 30% is a serious downer.† We donít have that kind of cash. Take this as a sign that you are not ready to do this. You will be starting out short on capital, and running out of capital is the biggest reason small businesses fail. †
Senior Member - 1K
posted: Sep. 5, 2013 @ 7:48p
StevenColorado said: Luniz97 said: The 2nd on your house will be the cheapest †† But if the business goes south, you lose your house. That's not necessarily true is it? If they lose the amount they borrowed from the 2nd mortgage, they can still pay it from their income if it allows?
posted: Sep. 6, 2013 @ 12:04p
The bank would be lending 70%, we would be chipping in 20%.† It's looking like a line of credit is the best bet†for the remaining 10%.† Local banks offering 3.25% currently.† I'm keeping my job while my wife works the buisness full time.
Stand up guy
posted: Sep. 6, 2013 @ 2:08p
rufflesinc said: StevenColorado said: Luniz97 said: The 2nd on your house will be the cheapest †† But if the business goes south, you lose your house. That's not necessarily true is it? If they lose the amount they borrowed from the 2nd mortgage, they can still pay it from their income if it allows? † You're right. †I should have said "If you default on the loan, you lose your house."
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