Home » FORUMS

obtaining a "small" small business loan

bigFish
Posts: 6
 Joined:

Hi All

I am helping one of my clients start their business. It will be a small home based business which does not need much money they need about $35,000. They own a home and they do have good credit

What would be the best way(quickest?, less risky) to get the loan?

‹ selling my small business finding garment wholesalers ›

Submitted by bigFish on Thu, 11/30/2006 - 1:34pm. login or register to post comments

Guideye. (not verified)
Posts: 0
 Joined:
Hi Bigfish In the small

Hi Bigfish

In the small business world 35,000 is not a very large amount. You should have a few options considering your clients have a good credit score and they own a home. 

They will probably qualify for personal loan of 25- 25K. It will be lower interest and the process will be quick.They will also qualify for regular commercial bank loans(business loan not personal loan). They will look at your clients personal credit and since it is good they will probably not even require a business plan.

A third option might be a home equity line but for that amount I would go with the other options first(preferably conventional non SBA business loan). No reason to directly put the house on the table.  


Fri, 12/01/2006 - 5:29pm login or register to post comments

bigFish
Posts: 6
 Joined: 2006-11-30
Thanks for the answer! What

Thanks for the answer!

What are average interest rates or expenses in a loan for 25,000? What should I expect?


Tue, 12/05/2006 - 1:40pm login or register to post comments

Guideye. (not verified)
Posts: 0
 Joined:
Hard to say but i think it

Hard to say but i think it should be around prime + 2-3 (?) Prime is around %8.2 so expect  around 10% if it  is a business loan

It will be significantly lower if it is a home equity or personal loan.... 

 

 


Wed, 12/06/2006 - 10:25pm login or register to post comments