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| *Loan,banking and credit>>>bank loan |
We are in the process of buying a business. What is the banks requiremnets to obtain the loan? |
The loan amt is quite large, what we would like to know is how much cash flow would be expected on the loan amt and how is the collateral based . I know that we would be reuired to bring in a certain amt of revenue but would like more info from someone a little more experiences in this. How do we base a salary for the employess who will be working for us. It is going to be owned and operated by myself and my husband how do we base a salary on us being the sole oweners? Right now we are at the point of the bank needing more cash flow what does this mean? if the bank need more cash flow, they don't think you make enough money to be able to repay the loan. you would have to either make more money or spend less in outgoing. I'd try to come up with a good buisness plan that shows them in a realistic way how you intend to grow, and or cut costs. where I work, salaries are based on 48 hours a week, ( sometimes they work more or less, but they get paid for 48 averagehours) and then the hourly rate would just be similar to what others in the same kinda jobs in your area Dear friend,I found a website that people can earn money online. Its link is http://www.*************/index... You can really receive payment from the website. The website gives a large percentage of their income to its members Most of the members have the opportunity to make more than 1000 dollars. Finally hope you good luck Check This Out http://tinyurl.com/j6ugc Prepare a project report regarding your buisness plan, details of your future plan, earnig forcast and how r you going to pay the loan. Bank also asks for some guarantee. When buying a business, a bank will usually only lend you 75%-80% of the purchase price. This is called the Loan-to-Value, or LTV. They want you to pay the remaining 25%-30% out of pocket. Because the building is most likely the collateral, the bank wants to make sure there's enough of a cushion, that should you default on the loan, they can sell the building and re-coup the money you owe them. When looking at cash flow, typically the bank wants to see a minimum of 1.25x debt service coverage. This means that the income from the business can cover the expenses (including the new debt) 1.25 times. It sounds as if you're not meeting the bank's requirement for this, which means you won't have enough money to pay the bank. In circumstances like these, you probably need to come up with more out-of-pocket money for the closing, so the bank loan will be for a lower amount, which will lower your expenses, and hopefully improve your cash flow (debt service coverage). 10+ years banking Unfortunately I cannot say. I am 22 and started an internet based business helping people build businesses online about 2 years ago. Since then I have helped people reach their goal of retirement and I think in total over 2 years, I have spent about $500 building my business! If internet retailing is the business you are interested I can help you build something at no cost. Please let me know if I can help. You can e-mail me at bcook@thewavecraze.com. It's a lot of fun!!! If not may you be blessed with much success! |
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