New Small Business Loan Question

[waterstar0610]

I’ve built the business plan and have had it looked over by a dozen people including a SCORE mentor and an accountant.

Based on all the data I have we should be profitable 2-3 months after the business opens. The problem I have is the buildout of the space I will lease will take 2-4 months. Which leaves me with 0 income to offset the loan payments for at least 4-7 months.

That’s a lot of time to float SBA loan payments when I have no income from the business.

Is it possible to delay payments for that time period?

 

[mshanzel23]

@waterstar0610 If you have a 700+ credit score and no negative items on your personal credit profile. You can apply for 0% interest business credit cards up to $75k limits and give your self a runway of 12-18 months.

 

[waterstar0610]

@mshanzel23 Thanks for that advice.

 

[mshanzel23]

@waterstar0610 My wife and I help entrepreneurs do this strategy. https://funding2.wholesomefinancials.com/vsl

 

[charmstar4]

@waterstar0610 Your loan “ ask” amount should always include some working capital to cover you for whatever; inventory, wages, rent and loan repayments until you get to revenue.

 

[seekingchristiancommunity]

@waterstar0610 Find an investor to provide the necessary capital. What are you going to use as collateral? Banks don't loan out money on a good business idea, regardless of the merits. They will lend against collateral. If all you have is a business plan you need to find an angel investor or something of value you can put up as collateral.

 

[waterstar0610]

@seekingchristiancommunity I have collateral, 401k, home, brokerage account etc.

It’s not an “Angel Investor” kind of thing. It’s just an indoor playground with maybe 2M in gross and a 10% margin. I’m not trying to be some Fortune 500 unicorn startup. Just a basic self sufficient business model that supports me and my family. I just want to be independent and not rely on the decisions of others.