Hi all,
I have a question about getting a loan from a bank to finance a startup company. It's something I've had no real experience with - I've always been the employee instead of the owner.
I have experience in what I am going into, and have a good business plan done up. I have also undertaken some market research backing up the idea. While I can't get into the specifics - in essence I would be providing services / consultancy to Irish companies in my area of expertise.
The sort of money I'm looking for is quite small I think - the costs would cover purchase of equipment (home office, laptops), company set-up costs (biz cards, brochures, phones etc), and an amount of money to cover the starting phase when business would be slow to start.
I'm looking for people's experience with this sort of thing - how easy / hard is it to get money from banks for start-up companies?
I think individual county councils offer grants to start up companies. Anybody know anymore about this?
Things that help:
Existing customers
Existing contracts
Letters of intent
Recommendations from your target market etc
Also you could try Vendor financing - if you can acquire a cusomter now then they might be willing to pay upfront to help you get started. This is more common than you think.
All of these imply a business that's already up-and-running.
I'd be interested to hear of anyone who's started a business on a non-asset backed or guarenteed loan.
To the OP: my advice would be to cut your startup costs to the absolute minimum, live off savings and only use borrowings against the list of "things that help" from dublinsense (you'll probably find that's about the only way you'll get it without personal guarentee).
The other option - friends and family - should only be considered if you're comfortable with the possibility that you may have to one day look them in the eye and say "I've lost all your money and I currently have no way of paying you back, nor can I see a way to do so for the forseeable future."
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