Question going on for business loans? Question: I want to borrow about $30k-$40k to buy a

Question: I want to borrow about $30k-$40k to buy a barbershop specifically for sale. The barbershop is already making money, the owner is newly retiring.

I am not a barber nor have i ever owned a business beforehand. My only experience is renting out a home that I own. Which is similiar to a barbershop, which have stations and stylists pay per week/month to rent out the stations. I would be an skiver owner.

My question is...What are the probability a lender would loan me the money? Also where is a right place to start?

Before you research loans, research the achievability of leasing stations.

Did the previous owner lease stations? Are they full? If you can lease, how much would you be able to charge? Is it practical for you to give the stations unattended?

Other than debt, what would be your costs (i.e. rent, phones, etc.). When you say it is already making money is that base on the retiring barber's contribution too? If so, and he won't be there subtract the helpfulness the current barber provides.

Real estate and running a business have exact disparate factors for increasing meaning. If you maintain indisputable estate and it is in a accurate area, it will typically appreciate.

Businesses don't work that process. In order to acquire appreciation for a business, you typically have to build it, prolong and show profitability. Even then, it can be intricate to sell a retail type business.

If adjectives these things check out and the numbers make sense....next you are at a point to consider financing. By the way, these are duplicate questions and concerns a lender would own.

Answers:
banks primarily look at but are not constrained to credit, collateral, cash flow and direct experience iin industry. You entail to demonstrate that you can place experienced staff. You inexperience and absentee ownership is a huge barrage, but at this dollar amount you may qualify for a credit scored small business loanif you hold good credit and outside sources of income.

You probably need to start near a local financial institution, maybe one you enjoy already borrowed money from before and narrate that about the investment property and what your plans are. The largest thing most bank look at is the collateral and not necessarily the borrower as a way to determine whether or not to provide financing. If the property is beneath priced for the area, alot of bank would probably loan 100% of the purchase price. There is also a good prospect they might require around 15% down payment since it is a business loan.

The business of lend is a dense one and should be researched properly. To get started, I suggest contacting the Small Business Administration (SBA). Entrepreneur also offer a great site dedicated to money & nouns �C see below for both.

Research, research, research �C this cannot be stressed enough. Read as much as you can almost the process. Here are some book titles that are relevant:

* How to Get a Small Business Loan: A Banker Shows You Exactly What to Do to Get a Loan (Small Business Series, No 1) by Bryan E. Milling
* The SBA Loan Book: Get A Small Business Loan--even With Poor Credit, Weak Collateral, And No Experience by Charles H. Green
* The Insider's Guide to Small Business Loans by Dan M. Koehler

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that help! I wish you much nouns & happiness contained by all your venture! Source(s):
http://www.sba.gov/financing/index.html -- Small Business Administration Financing
http://www.entrepreneur.com/Your_Business/YB_Node/0,4507,367,00.html �C Entrepreneur��s Money & Finance Page

Articles:
http://ezinearticles.com/?Get-Yourself-Started-With-Small-Business-Loans&id=202780 �C Get Yourself Started with Small Business Loans by Tim Kelly
http://ezinearticles.com/?Small-Business-Lenders&id=114843 �C Small Business Lenders by Matt Bacak
http://ezinearticles.com/?Small-Business-Loans-for-Small-Business-Owners&id=192835 �C Small Business Loans for Small Business Owners by David Gass
http://www.ezinearticles.com/?Small-Business-Loan-Basics&id=110172 �C Small Business Loan Basics by Joseph Kenny