What do you need to get a Million bank loan?
02-02-2014, 03:33 AM
Quote: (01-27-2014 06:55 AM)chibluu Wrote:
You need collateral man. If you default; the bank wants their money and how the hell would you pay them? If you have roughly a million dollars in assets (your house, stocks, bonds, investment properties, business assets) you can risk it all and maybe get the loan but if your business fails you lose everything you own.
If you have a solid proven business plan which I suspect you don't; you could look to venture capitalists or angel funding. Or try to start smaller. If you just have 200k in cash, you're not gonna find anyone crazy enough yo give you a million dollars.
This is generally the proper answer for a new business start-up plan. If you want a million dollar loan, you generally need at least a million dollars in assets as collateral. The purpose of such loans is to provide liquidity to persons of means.
If you have an established business, then banks want evidence of established cash flow sufficient to meet monthly loan payments.
As an analogy, think of a large apartment building that provides both a monthly cash flow and a secured asset in the event of a default.