|Posted by: Joan Jul 23 2004, 08:00 PM
|My husband and I wish to purchase a horse ranch w/7 cabins In Tennessee. It is a $3 million existing business with a large income. We have owned a small business previously, but never one of this size. We have put together a business plan. Where do we even start to look for business loans of this size? We are from a small community and are not getting satisfactory answers from our local lending companies. Please help! This is a life long dream.
|Posted by: loanuniverse Jul 23 2004, 10:25 PM
I read your post and it kind of bother me a little, but could not point my finger in it. Then I realized what it was.
You said ” existing business”, then you said ” business plan”. On the one hand, you are talking about something with a track record, but on the other you seem to be trying to sell this based “on potential”. Being completely honest, lenders do not work “based on potential”. Most would love for their borrowers to be wildly successful, but really there is little chance of you being successful and deciding to pay 100% percent interest instead of whatever your note has written on it. Potential is good for the equity investor, the lender is only looking to make sure that the risk of not getting paid on the loan is minimal.
I would also like to know what kind of lenders have you approached? And what reasons have they given for them not being receptive to the request? You need to work on those things to have better success.
How small of a community is this anyway? Is it just one or two banks there? I could tell you to go to the closest big town or city, but first you need to find out why the ones that you tried said no.