I need help for a business loan that I'm applying for.?

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ausmyles2004

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It's a night club. I'm going to ask for the money to buy the location, first year's operating costs (Insurance, utilities, etc), quota liquor license, and actually that's about it. Here is the break down:

325,000$ for the building and property.

300,000$ for the salaries of the individual workers.

130,000$ for the liquor license (I'm in Florida, this is the best I can do)

And then 150,000$ for insurances for liabilities, utilities, and remodeling of the establishment for the first year (This is a brand new club renovating an existing building).

So this is roughly a 900,000$ loan. I have no collateral, but I will have the first club of it's kind, and this will be the only night club within a 100 mile radius, I have over 1,000,000 people living in this county and growing constantly, which gives me a high demand for this establishment. Now, I have no collateral that I am willing to give up to with an offer to the bank for the loan. But I believe the club and the propositions that me and my crew have right now is more than enough to sell the idea, but I just want to know what any bankers or business personnel have to offer for an insight to this. Do I have a good chance to make this happen? Would they be willing to give me this loan? They will also have intellectual property created once the club is opened as well, which can all be the banks in case it fails (Which hopefully this wouldn't happen).

Please and thank you for any and all help. And feel free to e-mail me for any discussions. I really don't want to look like an idiot in my presentation when I do them for the banks.
 
For a $900,000 loan you need to put up about $900,000 worth of "stuff" the bank can sell to recover their money if the business folds. With no collateral you can't get a loan. Next-best would be to take on a business partner (or six) who *do* have something they can secure the loan with, and then you basically borrow your shares from *them* and buy the shares properly over time using your pay from the club.
 
With no collateral likely no, even the SBA wants collateral for a loan of that size. And an SBA loan is done through a bank, so you cannot approach the SBA on your own.

Here is the good news, from your post it sounds as though you are buying the property. When purchasing the property and doing improvements, you may qualify for a 7a or SBA 504 loan if the value of the property has some merit after the improvements are done.

Make sure your business plan is up to snuff and you have a good idea of what the value will be when complete.
 
No.

Sorry to be so blunt, but I highly doubt you will get a loan with any bank based on the information you have provided. You may try with the Small Business Administration -- but right now it is next to impossible getting a loan anywhere.

If you still plan to pursue this avenue, be sure you prepare a more than perfect business plan. Include everything ... and I mean everything. Potential lenders will be more interested in a well prepared business plan.

Best wishes.
 
No.

Sorry to be so blunt, but I highly doubt you will get a loan with any bank based on the information you have provided. You may try with the Small Business Administration -- but right now it is next to impossible getting a loan anywhere.

If you still plan to pursue this avenue, be sure you prepare a more than perfect business plan. Include everything ... and I mean everything. Potential lenders will be more interested in a well prepared business plan.

Best wishes.
 
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