Nathan Haffke ⋅ Omaha, NE Signal 88 Security ⋅ 20 years experience

Alex, There is an SBA Express loan for Vets that our franchisees get for their security services business that is for $150k and can fund in 30 days. We use The Finance Store because they are good with helping Vets with franchises in particular. There's no reason they couldn't help you as well. Nathan

Joe Floyd ⋅ Norfolk, VA U.S. Air Force, Senior Airman ⋅ 4 years served

Alex:

There are a lot of good, programs however be careful whose you select. The VA and SBA work through larger commercial banks and the requirements are pretty much the same. The secured loan is secured by the SBA and the government takes partial responsibility for the loan. I would suggest that you visit a number of institutions for this loan. Banks can be very competitive and have a lot more flexibility without the help df the government guarantee. However, watch the fees and the interest rate. Is it fixed for a period of time or does it float? Also make sure you have enough money to sustain the operation for at least two years as cash flow does become a problem, especially with this type of operation. The SBA can be very imposing as well as the bank.

Good Luck.

Ted Mittelstaedt ⋅ Portland, OR Portlandia IT LLC ⋅ 20 years experience

just remember that this is a very competitive business and the customers are fickle. No business plan in the world can predict your sales, they can only predict your expenses. The single largest factor for these businesses failing is too rosy assumptions of sales. Fortunately, because there are so many failures, the secondary market is flooded with used food prep equipment that people are desperate to convert back into cash. Take your time when buying and don't get railroaded. It is a very dangerous time for you because most people starting businesses are so excited at the prospect that they overspend. If you adopt the attitude that you will never buy a piece of gear that isn't used, and none of the sob stories the sellers tell you are real, and there is always a better and cheaper piece of gear around the corner that someone else is selling, you will do OK.

If your successful in 2 years you will have a good handle on your sales and you can then take that and scrap all your used gear you bought when starting out and buy all brand new stuff - if the notion of using used gear is abhorrent for some reason.

Also NEVER forget the loan money has to be paid back and it will cost you more to pay it back. Every dollar you spend now is $1.50 that is being sucked out of your profits tomorrow, that you could have taken home and spent on yourself. Instead of getting all excited about buying that brand new pan, think of the big screen TV that you won't be able to buy tomorrow because you had to buy the pan today. 2 years from now that brand new pan will be beat up and you won't have your TV.

Robert Jurasek ⋅ Hollywood, FL Federal Aviation Administration (FAA) ⋅ 45 years experience

Hello Alex,

You may also want to contact the SCORE Association (previously known as the Service Corps of Retired Executives.) SCORE (www.score.org) offers free mentoring for business start-ups.

Best regards,
Bob

Brian Richardson ⋅ Columbus, IN U.S. Army, Sergeant ⋅ 8 years served

Alex,
Call a local bank and ask them their specs on a loan like that. Other options might be to get financing through the equipment manufacturer or provider. Of course that would not work if you were looking at used equipment.

Your credit history and ability to pay back via your new business will be major factors. Do you have a well thought out business plan yet?

Brian Richardson
www.VetLaunched.com

tamme tannehill ⋅ Louisville, KY Find Me A Franchise, LLC ⋅ 35 years experience

Hi Alex....I work with lenders that offer unsecured loans up to 150K. It will depend on your credit score and parts of your credit history. You do not have to have your business open to apply. They will pre-qualify you for either a business line of credit or personal line. Getting pre-qualified first will give you a better ideal about what you can afford to do and how to move forward with your business plan, sales projections and pro forma (we can discuss these later if you need to).

Private message me if you would like to discuss further.

Tamme

Alex Schmidt ⋅ Bluffton, SC U.S. Navy, Petty Officer Third Class ⋅ 8 years served

Yes Brian, I had a CPA make the numbers, and created a well thought out business plan I've been working on perfecting the past year and a half. The only reason I'm concerned is that I'm aware there isn't too many banks that are willing to fund a food type business

Alex Schmidt ⋅ Bluffton, SC U.S. Navy, Petty Officer Third Class ⋅ 8 years served

Thank you for the responses everyone. Nathan Haffke, I'm assuming since the quick loan is with the SBA, the interest wouldn't be to outragous?

David Jackson ⋅ Midland, MI U.S. Army, Specialist ⋅ 3 years served

Alex,
Contact your local Small Business Association and they might be able to help you. In addition there is a business that helps veterans with business and starting a business all for free. It's called Vet Biz Central. (info@vetbizcentral.org) When I was a TAP instructor we always had a representative from Vet Biz Central come in and present their information to the class. They might be able to help with a lot more than just info on loans! If you would like some additional help, just let me know.