03rd Oct 2008
Does the “credit crunch” have you panicked? Don’t. It’s still possible to get a practice startup loan.
I just talked to a new grad who talked to several banks and got a startup loan with only 10% down and no co-signer. I also have heard that SBA loan money is getting harder to come by, but I heard of someone else who got an SBA-guaranteed loan.
Can you still get a loan, despite the dificult credit situation? It depends:
- It depends on the bank. You have to keep looking, making changes in your request, talking to bank after bank. If you go to 10 banks, don’t give up. Maybe the 11th will be the one that says “yes.”
- It depends on the region of the country where you are, the state where you are. The first instance above was out west. Banks and SBA offices in other states might not be so willing to give. I’ve never been able to figure that one out.
- It depends on your personal financial situation. Especially your credit rating. Banks are requiring higher FICO scores, over 700 and even up to 750 now. Know your credit score; if it’s low, think about how you will overcome that number.
- It depends on how much you are asking. Cut down your request to an absolute minimum. What do you REALLY need, as opposed to what you think you want? The less you ask for, the better your chances of receiving it.
A note of encouragement:
Perseverance is a great element of success. If you only knock long
enough at the gate, you are sure to wake up somebody. — Longfellow
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