How do I start?? Financing

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Hello!! Long time listener, first (or second?) time caller.
I am looking for help with financing a local inn that is currently for sale. How do am know if I could qualify for financing such a large sum of money? The inn is for sale for $1.1 million and I don't know where to start. Any advice? I know that I could go to the bank and ask, I am wondering if they would even consider a loan for such a large amount.
 
The only way to know for sure is to contact a bank. Look for one where the inn is located as they will know the area.
Something you should consider first is any bank is going to expect a 30% down payment before they even consider you.
You will also probably be asked to have X number of months' operating expenses in the bank to fall back on. So, 3-6 months of mortgage, taxes, utilities, insurance, payroll.
You can contact the SBA for help with figuring this out.
 
The only way to know for sure is to contact a bank. Look for one where the inn is located as they will know the area.
Something you should consider first is any bank is going to expect a 30% down payment before they even consider you.
You will also probably be asked to have X number of months' operating expenses in the bank to fall back on. So, 3-6 months of mortgage, taxes, utilities, insurance, payroll.
You can contact the SBA for help with figuring this out..
Thank you for taking the time to respond!!
 
Our bank required a written business plan and took the projected income of the inn into consideration when calculating our income.
But they are very careful. If the inn is operating at a profit now, you have a better chance.
Morticia is correct, you will need a down payment.
We sold our home to create a down payment.
 
Our bank required a written business plan and took the projected income of the inn into consideration when calculating our income.
But they are very careful. If the inn is operating at a profit now, you have a better chance.
Morticia is correct, you will need a down payment.
We sold our home to create a down payment..
TheBeachHouse said:
Our bank required a written business plan and took the projected income of the inn into consideration when calculating our income.
But they are very careful. If the inn is operating at a profit now, you have a better chance.
Morticia is correct, you will need a down payment.
We sold our home to create a down payment.
Yes. All of this. Including selling the house.
 
Also be truthful about any debt you have ie credit card and so on and start working if not already at getting rid of them - lying or not showing and they find out is worse than having!
ie my car is paid for by the business - however the credit check showed it up because the finance company wouldn't take money out of a business account so had direct debit out of my currant account but transfered the money straight from my business account each time to balance ie - completely forgot about this obviously being on my credit history as I always consider it paid out of the business - so when it flagged up as something they hadn't been told about I got a slap on the wrist. In the time we have spent messing about with this additional purchase we were trying to finance my car finished it finance (just add fuel 3 years) and we have a new one on the same program but this time they were perfectly happy to take the money from the business acc.
So think carefully about your direct debits, credit cards and subsciptions
 
Also be truthful about any debt you have ie credit card and so on and start working if not already at getting rid of them - lying or not showing and they find out is worse than having!
ie my car is paid for by the business - however the credit check showed it up because the finance company wouldn't take money out of a business account so had direct debit out of my currant account but transfered the money straight from my business account each time to balance ie - completely forgot about this obviously being on my credit history as I always consider it paid out of the business - so when it flagged up as something they hadn't been told about I got a slap on the wrist. In the time we have spent messing about with this additional purchase we were trying to finance my car finished it finance (just add fuel 3 years) and we have a new one on the same program but this time they were perfectly happy to take the money from the business acc.
So think carefully about your direct debits, credit cards and subsciptions.
Ugh! Yikes to the credit card debt being looked at and considered. I have some considerations to make. Thank you!
 
Also be truthful about any debt you have ie credit card and so on and start working if not already at getting rid of them - lying or not showing and they find out is worse than having!
ie my car is paid for by the business - however the credit check showed it up because the finance company wouldn't take money out of a business account so had direct debit out of my currant account but transfered the money straight from my business account each time to balance ie - completely forgot about this obviously being on my credit history as I always consider it paid out of the business - so when it flagged up as something they hadn't been told about I got a slap on the wrist. In the time we have spent messing about with this additional purchase we were trying to finance my car finished it finance (just add fuel 3 years) and we have a new one on the same program but this time they were perfectly happy to take the money from the business acc.
So think carefully about your direct debits, credit cards and subsciptions.
Ugh! Yikes to the credit card debt being looked at and considered. I have some considerations to make. Thank you!
.
Dragonflydreamer said:
Ugh! Yikes to the credit card debt being looked at and considered. I have some considerations to make. Thank you!
Something else to keep in mind - every year the bank that holds our mortgage requires that we fill out a personal financial statement showing what have for personal assets and liabilities as well as the same for the business.
So don't think you can rack up the credit card debt after the loan is secured.
 
Also be truthful about any debt you have ie credit card and so on and start working if not already at getting rid of them - lying or not showing and they find out is worse than having!
ie my car is paid for by the business - however the credit check showed it up because the finance company wouldn't take money out of a business account so had direct debit out of my currant account but transfered the money straight from my business account each time to balance ie - completely forgot about this obviously being on my credit history as I always consider it paid out of the business - so when it flagged up as something they hadn't been told about I got a slap on the wrist. In the time we have spent messing about with this additional purchase we were trying to finance my car finished it finance (just add fuel 3 years) and we have a new one on the same program but this time they were perfectly happy to take the money from the business acc.
So think carefully about your direct debits, credit cards and subsciptions.
Ugh! Yikes to the credit card debt being looked at and considered. I have some considerations to make. Thank you!
.
Dragonflydreamer said:
Ugh! Yikes to the credit card debt being looked at and considered. I have some considerations to make. Thank you!
Something else to keep in mind - every year the bank that holds our mortgage requires that we fill out a personal financial statement showing what have for personal assets and liabilities as well as the same for the business.
So don't think you can rack up the credit card debt after the loan is secured.
.
Something else to keep in mind - every year the bank that holds our mortgage requires that we fill out a personal financial statement showing what have for personal assets and liabilities as well as the same for the business.
So don't think you can rack up the credit card debt after the loan is secured.
They even send a nice letter to remind you!
 
Also be truthful about any debt you have ie credit card and so on and start working if not already at getting rid of them - lying or not showing and they find out is worse than having!
ie my car is paid for by the business - however the credit check showed it up because the finance company wouldn't take money out of a business account so had direct debit out of my currant account but transfered the money straight from my business account each time to balance ie - completely forgot about this obviously being on my credit history as I always consider it paid out of the business - so when it flagged up as something they hadn't been told about I got a slap on the wrist. In the time we have spent messing about with this additional purchase we were trying to finance my car finished it finance (just add fuel 3 years) and we have a new one on the same program but this time they were perfectly happy to take the money from the business acc.
So think carefully about your direct debits, credit cards and subsciptions.
Ugh! Yikes to the credit card debt being looked at and considered. I have some considerations to make. Thank you!
.
Dragonflydreamer said:
Ugh! Yikes to the credit card debt being looked at and considered. I have some considerations to make. Thank you!
Something else to keep in mind - every year the bank that holds our mortgage requires that we fill out a personal financial statement showing what have for personal assets and liabilities as well as the same for the business.
So don't think you can rack up the credit card debt after the loan is secured.
.
Ours requires a copy of our tax returns.
 
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