SBA Loans, anyone gotten one before?

[crispins]

I have never been into loans, always used cash for everything.

My business did well this year, however I started with 3 cars (2 of those I found were not good for the business) and have used cash to acquire a few more.

I have never had a seasonal business before and the big drop off in income at the end of the season sucks.

I would like to bring in as much as possible next year so if I could buy another 8 units before next Spring it would help tremdously.

So what is the deal with the SBA loans?

Are they hard to get? Reading about them they make it sound real easy.

Full Disclosure guys, I was born with a penis and light skin (I know, fucking sucks, right?)

So what that being said what kind of odds would there be for getting a loan from them for like $150k?

any experience out there?

 

[Roc Doc]

Do you have a business plan?
Chart of accounts?
Are you incorporated?
How's your credit?
Do you have a CPA doing your books/taxes?

 

[crispins]

Do you have a business plan?
Chart of accounts?
Are you incorporated?
How's your credit?
Do you have a CPA doing your books/taxes?

I have the one from the Underwear Gnomes episode of South Park hung up in my office

I have just one bank account

Yes of course

Was 800+ earlier this year, until I used $50k in credit cards to buy some vehicles, it has tanked pretty bad, like 650 or so

Yes of course

 

[scope]

I used one to buy my business. It sucked.

It was a difficult process to get through and took about 6 months from first talks to closing. I think it was a 7a loan. Constant requests during that 6 months for documents and updates to documents. The banks SBA specialist told me after the fact that only about 15% of the loans he works on get to closing, and with the process I believe it. This was with outstanding personal credit, a substantial cash reserve, a business with solid financials and very little debt on the books. Everything had to be collateralized, including a lien on my house. All debt to the business had to be paid off with the loan, which increased the balance about 40K (we had 2 trucks that were financed).

I had one incident with an employee totalling one of our trucks about a year into it. At the time cash flow was tight and I was counting on that truck. No big deal right, get the insurance check, use it for a downpayment and go find a truck. Uh no. BoTW took the insurance payout and applied it to the loan balance (check had to go through them because of the lien). Then told me after I replaced the truck I would need to let them lein it also. Fuckers. That is when I found the joys of Lightstream. They gave me a loan personally to buy a truck, no collateral needed, no lien (I had the title from day one). I then sold the truck to my business (Lightstream doesn't do business loans). The Bank of the West bitch of a loan officer was constantly bugging me for updated financials and personal financial statements every couple months.

As soon as I could I refinanced out of that into a conventional business loan. Have three more years to go on that and it'll be gone. Much more better; I work with a local guy in a local bank. Once a year we sit down and go over financials and then he leaves me alone. The relationship was invaluable when the PPP came about this year.

If you want to explore the SBA route, find a local bank you like and have a conversation with their SBA person. You are going to need that guidance.

 

[crispins]

I used one to buy my business. It sucked.


If you want to explore the SBA route, find a local bank you like and have a conversation with their SBA person. You are going to need that guidance.

I have been reading about them for the last hour or so, it seems like that is what I am seeing from every site except for the SBA site.

I think I am going to explore looking into Equipment Finance, if they will qualify Side by Sides as equipment.

I have good financials, and a decent amount of assets as well.

I will skip the SBA.

Any pointers or recommendations for what company to look for a loan from, my local bank does not seem interested.

 

[scope]

PM inbound

 

[2big bronco]

I have been reading about them for the last hour or so, it seems like that is what I am seeing from every site except for the SBA site.

I think I am going to explore looking into Equipment Finance, if they will qualify Side by Sides as equipment.

I have good financials, and a decent amount of assets as well.

I will skip the SBA.

Any pointers or recommendations for what company to look for a loan from, my local bank does not seem interested.

Look into lightstream. With a good credit record they will lend you 100k unsecured for 8-11%. I have used them countless times for up to 50k and it's always unbelievable to me how smooth it is. Email over the documents they ask for and the money is in your account the next day. It's not advertised but you can also negotiate with them.

 

[east_beast]

I have the one from the Underwear Gnomes episode of South Park hung up in my office

I have just one bank account

Yes of course

Was 800+ earlier this year, until I used $50k in credit cards to buy some vehicles, it has tanked pretty bad, like 650 or so

Yes of course

Why in the world were you using credit cards to buy vehicles if you had an 800+ credit score??? Unless you were paying off the balance immediately and banking the points (which you weren't if it tanked your score), that was insane.

 

[TRINDU]

I have never been into loans, always used cash for everything.

My business did well this year, however I started with 3 cars (2 of those I found were not good for the business) and have used cash to acquire a few more.

Was 800+ earlier this year, until I used $50k in credit cards to buy some vehicles, it has tanked pretty bad, like 650 or so

Cash ≠ CC

I'm guessing you played the 0% shuffle around game with the CCs. That's being said, I'm interested what you sort out. The only thing stopping me from making more is working capital. My LOC is 5%, but paying interest only and paying it off every 30-45 days keeps the money in my pocket. Little different that dealing with the principle on a 7 year 150k note.

 

[crispins]

Why in the world were you using credit cards to buy vehicles if you had an 800+ credit score??? Unless you were paying off the balance immediately and banking the points (which you weren't if it tanked your score), that was insane.

When you haven't had a paycheck stub in years, financing a couple $23k Side by Side's isn't that easy.

It was a gamble, I have the money to pay them off now.

I am exploring my options now, trying to figure out the best way to proceed.

I might run the credit card debt for another year and use my cash to buy some more SxS's

IDK right now.

 

[Ted_Kaczynski]

Pay the cards off yesterday. Or use that cash to buy next years to double up your income while you bring in more $$ and make CC payments. You've already taken your SBA on the CC.

I have zero experience but try to keep my finances SIMPLE, but thats how you look from my perspective.