Question : Is it possible to recieve full financing on a small business loan?
I’m looking to start a clothing retail business in about one year, and by then I’ll have about one year’s worth of credit (about to turn 18) history. Right now, I figure I’d need about 200k to get it up and running. My question is would it be possible at all to recieve full financing or should I take out student loans, invest them in the market, and use that for a down payment? Thanks in advance.
Oh, and no bull**** solicitors either, I am not looking for a loan through Joe Schmo, the internet crook, I would just like to know how it can be done legitamentley. Thanks again.
small business financing

Best answer:

Answer by ynot
First of all, your credit history will not be lengthy enough. Three years of solid credit will be better.
Second. banks and lending institutions want you to have about 30% or more equity in the transaction – meaning they will lend you about 70% or less.
You’ll need a very sound business plan.
If you take out student loans to try to fund your share of the transaction, they’ll show up on your credit history, they’ll reflect on your borrowing power and banks will not want to lend you more.
If you have a really good idea, your best bet would be to find a well financed partner who’ll provide the starting capital and negotiate a partnership and go from there.

Since this is your first business venture, try this link :

http://www.ychange.com/small-business-consulting-articles.html

and read some of the articles especially the ones about a business plan and starting a business.

Good Luck