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Thread: Oh FUN! Financing! Bad credit score, co signers, 60,000 loan.

  1. #1

    Default Oh FUN! Financing! Bad credit score, co signers, 60,000 loan.

    Hey guys, so I am writing this in frustration. I always knew finding funding for a small business was going to be hard, but not this hard.

    So I am curious to know what are my chances of getting approved for a 50-60k loan with two co signers who have credit scores of 650 and income of 25k a year? I am disabled and make 10k a year.

    Thank you in advance guys. Also my credit score is bad but I recently paid all debt off IN FULL. My bills took a hit during my period of obtaining disability.

    Thank you!
    Last edited by Martymar93; 01-25-2018 at 12:41 AM.

  2. #2
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    Banks don't lend you money because you need it. They expect to make money when you pay them back and they want to make sure as much as possible that you'll be able to pay them back. A 650 credit score is considered fair. I doubt a bank would lend anyone $50-60k based on cosigners who who together don't make that much money in a year.

    What's your business? Do you have a business plan to present to the bank? How is your business going to make money? How is the loan going to help you grow your business?
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    Quote Originally Posted by vangogh View Post
    Banks don't lend you money because you need it. They expect to make money when you pay them back and they want to make sure as much as possible that you'll be able to pay them back. A 650 credit score is considered fair. I doubt a bank would lend anyone $50-60k based on cosigners who who together don't make that much money in a year.

    What's your business? Do you have a business plan to present to the bank? How is your business going to make money? How is the loan going to help you grow your business?
    Hey Vangogh,

    I have a business plan and paid 3,500 for it. (Can you beleive that) My business is a Cannabis business. So the business will generate customers through sales. The loan will help me grow my business by

    A.) Allowing me to startup.
    B.) Obtaining profit from customers.

    I believe in my business plan probably just like everyone else. I don't have any doubts about lenders lending to me , I just wonder how possible it is to obtain 60k between 3 24-28year olds who only collectively make near 60k a year. They have really fair credit scores(650) but mine is poor.(507 currently)

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    You paid $3500 for a business plan??? and it didn't even include how to get financing???



    To be honest, with the feds recent statement about Cannabis and your co-signer earning just over the poverty level, I don't see anyone touching this loan with a 10 foot pole. Look for a way to start your business without a loan.
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  5. #5

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    Quote Originally Posted by nealrm View Post
    You paid $3500 for a business plan??? and it didn't even include how to get financing???



    To be honest, with the feds recent statement about Cannabis and your co-signer earning just over the poverty level, I don't see anyone touching this loan with a 10 foot pole. Look for a way to start your business without a loan.
    Well I was told that an in-depth business plan would cost. Around 7k-10k. Also, are you sure know what your talking about? 60k isn't that much money to be honest, why wouldn't a bank loan that when between the 3 of us we make 60k in one year?

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    Let's see, do I know what I am talking about. Business owner for over 10 years, prior work in venture capital, MBA from a top 20 program..... Maybe yes.

    First, salaries can go away. Banks want hard collateral, mostly a home with equity.

    Second, the federal government just stated they are going to go after those selling cannabis. Banks tend to not like to loan money to businesses that may be shut down.

    Third, business loan typically run 6-8 years. Currently rates are around 7.25%. This would require a monthly payment of $825. Can your co-signer handle that?


    You have a business plan, how much will it take to rent and stock your store?
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    Most lenders who loan to businesses want a year in business before they will make a loan. Half of all businesses fail within a year so any new business is much riskier. If your two cosigners have more than 60K in assets it might be possible to get a loan. The fact three of you will be signing for the loan may help a bit. It never hurts to try but I do think there is a good chance you may not be able to find a bank to loan you the money. Are you planning to grow the weed or set up a retail store?

    Cannabis has some risk to it as a business. I believe there is a chance the federal government my enforce the laws against growing it and using it trumping the state laws. Personally I don't think it will happen but the Federal government has talked about doing that. It is also a business that tons of people are jumping into and that too makes the risk of failure greater for everyone.
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    Quote Originally Posted by Martymar93 View Post
    Hey Vangogh,

    I have a business plan and paid 3,500 for it. (Can you beleive that) My business is a Cannabis business. So the business will generate customers through sales. The loan will help me grow my business by

    A.) Allowing me to startup.
    B.) Obtaining profit from customers.

    I believe in my business plan probably just like everyone else. I don't have any doubts about lenders lending to me , I just wonder how possible it is to obtain 60k between 3 24-28year olds who only collectively make near 60k a year. They have really fair credit scores(650) but mine is poor.(507 currently)
    Oh Marty, $ 3500 for a plan. You could have grown some pot with that money! But here is the real problem. Forget the credit scores, the odds of a bank financing a cannabis business are about 0%. They will get a good laugh over it. They probably can't even open a bank account for you. Think of something else to do.

    Alternatively your friends could borrow personally and divert funds to you.

  9. #9

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    Hey Paul. Yes, I should have clarified. I am talking about a personal lender here, not banks guys. Now does that change my odds?

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    By personal lender, are you talking about a friend, an investor, credit card.....
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