# How would I get a loan to open a physical store for my website?



## Armand Audrey (Dec 12, 2009)

I've been trying for a while to open up a physical store for my shirts, but my credit really sucks.

What I want to do is open a store that will not only market my merchandise, but also market stuff from third parties. I will not be manufacturing/printing the shirts myself, I'll get a third party to do that. 

It will also include a hangout with vending machines and coin-operated video games, and be open 24/7.

Anyone have any pointers? Where could I get a loan for it? I was thinking that I'll have a better chance if a lender sees that I already have a functional company on the Internet, is that true?

Any help would be appreciated. Thanks.
-Armand


----------



## veedub3 (Mar 29, 2007)

Bad credit...a loan from a bank just won't happen. Right now even with good credit will not make it happen. President Obama is meeting on Monday (Dec. 14, 2009) with Bank CEO's to talk about why they are not lending to small businesses. 
And forget about the SBA.
If you can find a silent partner or an investor would be the best way to go until the Banks loosen the purse strings.

Katrina


----------



## charles95405 (Feb 1, 2007)

Katrina is correct I believe...with poor credit the chances of getting a loan from ANY bank or financial institution is some where between zero and minus 10. With todays economy it ain't gonna happen. Sorry if we sound crass but facts are facts. Maybe a relative or investor...but even then doubtful..

Having a functional company on the internet does nothing...anyone can put up a website and say it is successful/functional..

Also you do not mention what you bring to the table...any designs, equipment, customers etc...? Remember the T-Shirt business is one way to lose your A** in short order if one orders too much equipment, gets lease with larger monthly payment and no firm business. I know of at least 10 who have folded this year


----------



## Nikelover (Nov 6, 2009)

you will be having a hard time since you have a bad credit reputation.
maybe try to cleat up things that you need to clear.


----------



## kimura-mma (Jul 26, 2008)

Armand Audrey said:


> Anyone have any pointers?


As already stated, bad credit makes this very very difficult given the current economy. That said, start putting together a business plan. Do you have a location already in mind? What is the rent or purchase price? Figure out how much inventory it will take to fill the store. Start pricing out your production costs of your merchandise and wholesale costs of third party merchandise. Figure out the costs of the vending machines and video games. Open 24/7, you need employees, insurance, etc. Figure out those costs. Then put together a profit analysis and how you plan to increase profits over the first 5 years. Be as detailed as possible.



Armand Audrey said:


> Where could I get a loan for it?


Start with banks and lending institutions. Then look into private investors.



Armand Audrey said:


> I was thinking that I'll have a better chance if a lender sees that I already have a functional company on the Internet, is that true?


Not really.


----------



## veedub3 (Mar 29, 2007)

This is what came of the meeting with Pres. Obama and the CEO's of the Banks

"Banks knew they had little to gain from a meeting with President Obama. Three of the top CEO's failed to even show up for the meeting. _(But when they had their hand out asking for money nothing could stop them from attending)_ Yet banks continue to plan big Executive bonuses, tighten lending, raise interest rates and increase other costs to the public, all while spending $344 million in lobbying fees in the first three quarters of this year to fight off attempts to strengthen regulation of the financial industry.
On Monday, they not only snubbed the president, they snubbed the American public. 

Our only hope is that Congress will take this slight as a sign that it's time for them to step up to the plate and pass strong legislation to protect Main Street from Wall Street excesses." 

A Bank loan for your purpose in this economy I feel just won't happen. Your best bet is a private lender.


Katrina


----------



## Bigpapi (Nov 15, 2009)

You may want also want to consider a business plan. While you may not need it, if you had one ready should something come up, it could be helpful. Any lender is going to want to know what type of profits you plan on making. What makes them want to invest in your company? What types of returns could they expect. Things like that.


----------



## Don-ColDesi (Oct 18, 2006)

Failure to plan is a plan for failure. 

Take to heart the posts that suggest a serious business plan. When someone (bank or otherwise) is considering investing in a venture the first thing they will look at is credit history. Your credit history is an indication of how you handle finances - like it or not. Your best bet is to grow the internet business while working on a solid business plan and also getting your personal credit in line. If there are incorrect things in your credit report, have them removed. If the info in your credit report is right, then start taking action to not fall into the same trap again. If your credit report reflects derogatory info that is the result of some uncontrolable event (health issue is a common one), be prepared to tell that story and even consider contacting the derogatory reporters to see what you can do to "settle" with them to get it removed from your records.

Unfortunately, we as Americans often feel entitled to a shot at the "American dream", even if we have not taken the actions required to earn that shot. A couple of years of solid personal finance management can position you to be a prime candidate for a loan at that time. Maybe not what you want to hear, but better to be real about it than beat around the bushes.

Good luck in your pursuit.


----------



## artistj (Dec 11, 2009)

So true about the credit and business plan piece. I've been working on my business for about 9 months now ensureing that it is realistic to my myself and appealing to an angel investor.


----------



## bakerb24 (May 20, 2009)

Do yourself a favor and save up to do it with cash. You said you've got bad credit. I certainly don't know how it got bad to begin with (maybe medical or divorce), but it doesn't sound like going into debt has been good to you so far. I know it's tough, but you've got to start slow, save up and pay as you go. 

Best of luck to you.

BB


----------



## solomon_schwartz (Nov 24, 2009)

find a good friend of yours with good credit, use him for a co-signer.


----------

