It is a fact that at one point in time or another nearly all entrepreneurs need a bank business loan, either to start up the enterprise, expend it, or to bridge difficult times when the consumer turns fickle. Of the many lenders and types of loans available, a bank business loan will probably be the best bet for starting the venture. A bank business loan is often the best way to establish and maintain your venture’s credit rating, if it is fastidiously repaid.
But, if you are experiencing financial problems, is a bank business loan a good idea to use to get current on the debts? Just what is a bank business loan and what is the application procedure? A bank business loan is an unsecured loan that does not require collateral of any kind. It is based entirely upon the credit rating of all of the involved partners; the prospectus or the plan that was developed that outlines the venture, including both the financial liabilities and the anticipated income. You will have to provide well-organized and scrupulous detail, together with a good credit rating for this type of loan. A bank business loan is the primary vehicle for starting up an enterprise and gets a venture off to a good start, however it is a poor remedy for existing financial problems.
It is far better to obtain professional advice on how to deal with your financial problems. The first thing that a qualified business debt consultant will want to know is the type of loans and financial obligations make up the entire situation. If you have unsecured debts, especially a bank business loan, there is quite a bit the consultant can do to make things easier for you to repay your business debt, continue running your venture and even improve your credit rating. One solution that may be proposed is business debt consolidation, which consolidates all of the financial obligations into one account that requires just one affordable payment per month. This has been worked out by the consultant together with all of the creditors who have agreed to accept a reduced payment that is based upon a lowered interest rate.
If the financial obligation is more problematic and either represents a large amount, or has become delinquent, the consultant may recommend business debt settlement. This form of financial relief is aimed only at unsecured loans such as a bank business loan and business debt settlement can be effected in a couple of days.
With either remedy the credit rating will begin to improve almost immediately. When creditors see that a professional business debt reorganization program is being worked out, the business credit rating reflects their approval. However, it is always best to seek help before any real damage is done and to anticipate a remedy before it is actually required. With the advice of a good business debt consultant, any venture can stay on track without taking out additional bank business loans.
Check these links to learn more:
http://www.commercialdebtcounseling.com/
http://www.commercialdebtcounseling.com/business/business-y/business-index.shtml
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#1 by Wordpress on June 5th, 2010
@derfowvayer
All of your examples are of private monitary systems in which private banks not the government, creates the credit and therefore do not prove your assertion. See Steven Zarlenga’s “The Lost Science of Money”
#2 by WPMixer on June 5th, 2010
@derfowvayer
Governments actually have a pretty good record running the money system. During the American War of Indepence, it was only British conterfeiting which eventually ruined the value of the Conntinental. During the American civil war, again government money was used responsibly. At the beginning of the war one dollor in greenbacks got you one dollor gold At the end of the war the rate was the same. A government money system saved America twice. Seems like a good record to me.
#3 by Merete on June 5th, 2010
#4 by Adam on June 5th, 2010
The majority of posters are correct. I wouldn't do it. First, you're 17 years old, no bank is going to make a loan to a minor. If a minor did sign a contract, it's a voidable contract at the discrepency of the minor. Not good business.
Second, you should never investment money you can not afford to lose. It should never be borrowed money. If you lose it, you are now in debt and must pay it back. If it's money that if lost would hurt you financially, then don't do it. It should only be money that if you lost it, it wouldn't affect your financial standing.
The poster that said invest in the stock market is telling you to play with fire. First, how much do you know about stock investing? The Harvard School of Business released the data on a study of how many people lose money in the stock market. Know what the percentage is? 90%. That is 9 out of 10 people lose money equities. Not because they're bad, but because they don't know how to trade. There is a learning curve in trading that can take several years to perfect. Also, the closed end fund that invests in mortgages, before you go and do that, pay attention to what's happening in the housing markets. I don't think investing in mortgages or mortgage-backed securities is the wisest thing right now. Don't take my word for it, just look at what's happening to the R.E. market. It's not good.
It is indeed possible, that's what the carry trade is all about. Up until a short time ago, the interest rates in Japan was 0%. This caused the Yen carry trade to flourish. People would borrow Yen at 0% interest and then invest the money in bonds in a country with a higher rate of return, like in the U.S. were rates were 4% and higher. The problem now is that the BOJ has begun raising their rates. This should impact the carry trade as 1) the closing of the rate gap and 2) the strengthening of exchange rate of the JPY relative to the USD would cause investors in the carry trade to lose money.
Anyway, what you're prosposing is very risky. You are borrowing money at a fixed, definite rate and invest it in a product that may or may not give you the kind of returns to service the debt leaving you with a net positive return. See the inherent danger?
I personally think you are playing with fire. Any negative move in your investment vehicle, relative to your loan could be catastrophic.
#5 by Beth Q on June 5th, 2010
Getting a grant to sell bead necklaces is going to take lots of research. I would definitely advise the client to start the homework process of research: there is a grant book that I was reading once; located at Barnes and Nobles and had a whole directory of grants available to small business.
Its going to take lots of writing so a grant writer is necessary. Or have this client start learning to "grant write" by sending her/him to a class. This is the best benefit.
#6 by Tomm H on June 6th, 2010
Yes you ask for a loan. It's called a small business loan, that you pay back montly. Can you get a loan? See a business banker at your bank
they can advise you. as for the business, call all the local companies
around your area, make flyers put them in the mailbox of all companies.
#7 by Anonymous on June 6th, 2010
everyone here should watch “Our bought and sold land” Canadian banking system documentary VERY EASY to understand and very clear on the situation… now as for college/university debt me and my gf will need to start selling weed just to have a chance to pay $40 000+ of intuition and OSAP…. How am I supposed to get a honest full-time job (that’s minimum wage) and pay that shit back? Do the math and its impossible.
#8 by dolejaran on June 7th, 2010
#9 by Free Blog on June 7th, 2010
To really understand… Just look up Zeitgeist 2, but an excellent faster way to really understand…. Just look up Blacksmiths and Bankers!!!
#10 by Lisa on June 7th, 2010
1. Possible but unusual. Banks have preferred to loan on "bricks and mortar" companies. You would pay 7% interest if you could get the loan. Payments of $6,500 a month. Every business owner in the world is sure that his "expanded business will be able to make enuf to cover this new loan"…. because businessmen are optimists but also because they wanted the loan for a reason in the first place.
2. Venture Capitalists can be found in the Wall Street Journal ( i dont' work for them and they are free at the library). The problem is that they want 51% ownership of the company. And they want the right to fire you even tho you used to own and run the company by yourself.
Angel investors are looking for good causes. Probably not your online business unless you could prove that you would be hiring hundreds of local people.
#11 by Roger C on June 7th, 2010
Not easy. you will need a well-written business plan including all demographic, expected profits, costs, etc. You can get some good direction on how to write a business plan from the Small Business Administration (see their web site at http://www.sba.gov) or from SCORE (see their web site at www. score.org).
Also, the SBA has a loan guaranty program – look into this avenue as it makes getting the loan easier.
#12 by Anonymous on June 8th, 2010
@saynotodrug999 this is federal debt not personal debt. Federal debt just keeps going up. And if your 40 000 is from school you gota manage it better… Canadian schooling is already like 90 % subsidized education. Imagine if you didn’t get the governments help to pay for you ass thrue school!
#13 by Jewelz_4_U on June 8th, 2010
Most so called Banks, are just Branch Banks. They work the same hours as Corporate, and we all know the don't work past 4:00PM Call your banker and try to go in at your time or do it by mail.
#14 by Anonymous on June 8th, 2010
@only1too exactly,all people give a fucking shit about is cheap beer and stupid fucking sport scores.
#15 by Anonymous on June 9th, 2010
@phnx4life
“I believe banking institutions are more dangerous to our liberties than 15 ton rabid chickens with razor sharp metal talons and laser beam eyes.” Sponge Bob
#16 by WPBlog Shop on June 9th, 2010
The Banks set up the Education system to keep this information from the public!
#17 by grandhustlegal on June 9th, 2010
You can't find a bank manager? Have you tried actually going to local banks? I think that is where they are all hiding from you.
#18 by Blogger on June 9th, 2010
problem is that the bill you hold in your hand is not money tho many ppl think it is
it is not its a note a legal tender tender does not equal money . its a promess to pay