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Home >> Lending >> Business Credit
What Does it Take to Get a Business Loan?
I am 21 years old. My dream and goal in life is to own and successfully operate a business. I have made some mistakes in the past regarding my credit score. I opened a student credit card in college and let it fall to 90+ days delinquent and it is now negatively closed, though still current. I have taken no loans in my life, have no major debt, but I've made some late payments on bills (one day - one week). I've never filed for bankruptcy. My FICO score is 627. I am currently employed and making $46,000 a year and have $21,000 in savings. How good are my chances of securing a $150,000-$200,000 business loan?
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 We can't answer your question because it depends on the business, the loan collateral, income projections, sales projections, your business plan, supplemental income as well as who may be liable on the debt. It is more than your cash and your credit score.
Paying a day or week after a due date is no a big deal. Paying ninety-plus days late on one of the only real lines of credit is not good.
Research the business you want to open and look for help from the Chamber of Commerce and/or small business groups in your area. They can help with the business plan, projections, SBA requirements, etc. It won't be easy in this economy and you may have to define stages of growth and borrowing to meet those stages. Good luck.
Published on BankingQuestions.com 11/24/10
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