Posted by: timi_mero_sathi October 11, 2012
Login in to Rate this Post:
0 
? 
?
Opts,
Banks make money from investments so yes they give loan to run a business in a cart inside a Mall.
To get any loan from bank you need following things
1. Are you legally allowed to do business in US. ( I know some ppl who are not allowed have taken loan from banks, but situation is diofferent now).
2. If you are allowed then what is your business plan. A busines plan consists of a valid registered company. you need to register a comapny as per local requirements (it may take up to 500$)
3. What type of business you want to run? You have to tell bank overall business in written form a news stand, with ciagareets, lotto, drinks, gift items, mobile acessories, jewlelery etc.How big will be the cart?
4. Cost you have to show the bank that you have estimated the cost. (cost of the cart, monthly rent plus maintenance fees, utilities etc.) and for the stock say in your cart you will have goods worth 10K for sale. Then cost for manpower, how much you are planning to take as salary if you are planning to do so (this part may not be that important but you have to prepare yourself, incase they ask).
Personal info: Bank also wants to know to whom they are giving money: Here whom means identified in paper. Your personal assets, like your cash in bank or any other asset.
Revenue generation: You must be able to tell the bank, depending upon the human traffic in the mall and analysing the business done by current cart Business you will be able to generate this much revenue(approximate) in a year. And you must be able to say I will be able to pay the loan in 5 years time or 3 years time etc.
Before agreeing with your plan and oking your loan bank also would like to see that you have already done homework for renting the place in mall, you must have some documental proof for a) space is available for a cart in mall b) and they allow the type of business you are planning to run c) rent and other cost and they are willing to lease you the place.
Wth all this informatin in a folder, nicely dressed, you should appraoch the small business section of the bank and talk with them. They will welcome you.(remember you have to approach small business section not the personal banking section many banks have different section established for it.). If you have a good credit record and have personal account with some bank it is good idea to approach the same bank with whom you were doing personal banking. If your branch do not have small business section you can ask your bank where do they have it.
If one bank rejects you dont worry, come back to your place, analyse what you think went wrong, imporve it and approach another bank.
Remeber no one is going to kill you just for asking few question. so, dont hesitate to ask quaetions. If some banks rejects you, you may ask
I have worked serioulsy on it, and i beleive this is a good plan, what are the reason for rejecting it? or similar question
they might tell you what is the wekness in your plan.
Then ask again, if I correct that will you loan me ? ( way of continuing conversation.) if they dont want, correct the weakness, approach another bank, but this time show them that you are flexible to change your plan .
Remember personal confidence is must. If you talk a way that you yourself are not confident thenthey they will reject
Also remembr over confodence also kills you: If your plan is weak and you are talking as if you are going to make million in that business, they wont trust you,
magic word is balance yourself, make a good plan
When a bank see a commited guy and vaibale paln, They will write formal paln which is necessary for sanctioning the loan. Those format they have in their computer. They will take data from your plan and put in fromal paln. Once you sign the loan from bank it may take a week or so depending upon the bank.
How much you can get from bank: Well, difficult to tell, if you are well prepared and if you can convienece the bank you ma be able to get 65% of the cost that means you have to invest 35%. For the begenner bank may ask up to 50% personal investment.
Banks make money from investments so yes they give loan to run a business in a cart inside a Mall.
To get any loan from bank you need following things
1. Are you legally allowed to do business in US. ( I know some ppl who are not allowed have taken loan from banks, but situation is diofferent now).
2. If you are allowed then what is your business plan. A busines plan consists of a valid registered company. you need to register a comapny as per local requirements (it may take up to 500$)
3. What type of business you want to run? You have to tell bank overall business in written form a news stand, with ciagareets, lotto, drinks, gift items, mobile acessories, jewlelery etc.How big will be the cart?
4. Cost you have to show the bank that you have estimated the cost. (cost of the cart, monthly rent plus maintenance fees, utilities etc.) and for the stock say in your cart you will have goods worth 10K for sale. Then cost for manpower, how much you are planning to take as salary if you are planning to do so (this part may not be that important but you have to prepare yourself, incase they ask).
Personal info: Bank also wants to know to whom they are giving money: Here whom means identified in paper. Your personal assets, like your cash in bank or any other asset.
Revenue generation: You must be able to tell the bank, depending upon the human traffic in the mall and analysing the business done by current cart Business you will be able to generate this much revenue(approximate) in a year. And you must be able to say I will be able to pay the loan in 5 years time or 3 years time etc.
Before agreeing with your plan and oking your loan bank also would like to see that you have already done homework for renting the place in mall, you must have some documental proof for a) space is available for a cart in mall b) and they allow the type of business you are planning to run c) rent and other cost and they are willing to lease you the place.
Wth all this informatin in a folder, nicely dressed, you should appraoch the small business section of the bank and talk with them. They will welcome you.(remember you have to approach small business section not the personal banking section many banks have different section established for it.). If you have a good credit record and have personal account with some bank it is good idea to approach the same bank with whom you were doing personal banking. If your branch do not have small business section you can ask your bank where do they have it.
If one bank rejects you dont worry, come back to your place, analyse what you think went wrong, imporve it and approach another bank.
Remeber no one is going to kill you just for asking few question. so, dont hesitate to ask quaetions. If some banks rejects you, you may ask
I have worked serioulsy on it, and i beleive this is a good plan, what are the reason for rejecting it? or similar question
they might tell you what is the wekness in your plan.
Then ask again, if I correct that will you loan me ? ( way of continuing conversation.) if they dont want, correct the weakness, approach another bank, but this time show them that you are flexible to change your plan .
Remember personal confidence is must. If you talk a way that you yourself are not confident thenthey they will reject
Also remembr over confodence also kills you: If your plan is weak and you are talking as if you are going to make million in that business, they wont trust you,
magic word is balance yourself, make a good plan
When a bank see a commited guy and vaibale paln, They will write formal paln which is necessary for sanctioning the loan. Those format they have in their computer. They will take data from your plan and put in fromal paln. Once you sign the loan from bank it may take a week or so depending upon the bank.
How much you can get from bank: Well, difficult to tell, if you are well prepared and if you can convienece the bank you ma be able to get 65% of the cost that means you have to invest 35%. For the begenner bank may ask up to 50% personal investment.
Last edited: 11-Oct-12 08:57 AM