Road Bike, Cycling Forums banner
1 - 20 of 32 Posts

·
Registered
Joined
·
55 Posts
Discussion Starter · #1 ·
My goal this 2017 aside from losing weight :D is to invest in my friend's food business. She would do all the deeds I would just be her financial partner. I'm looking for a credit company that offers personal loans with low fixed interest rate. Any suggestions?
 

·
Darling of The Lounge
Joined
·
4,798 Posts
Has your partner developed a business plan or performed a good SWOT analysis?

If sucess looks viable, check with your local SBDC or regional economic development center for options to infuse capital into this venture.

Good luck.
 

·
Registered
Joined
·
20,777 Posts
Taking a personal loan to invest in an unknown business start up. Sounds like a bad idea. It's the plot of 50% of Judge Judy/Peoples Court episodes.

Low interest rates are more tied to your credit than any particular loan company. They're all going to be fairly competitive with each other.
 

·
Registered
Joined
·
5,393 Posts
You are borrowing money for someone else, why don't they just do it?
If they are a friend, but will not be for long.
 

·
δanned
Joined
·
7,005 Posts
You are borrowing money for someone else, why don't they just do it?
My guess is the friend's credit is so bad they can't buy lettuce on a Whopper.

If they are a friend, but will not be for long.
Rule #1 of going into business. Don't do it with family or close friends. If the business goes south, so does the relationship.

OP, can't you get a business loan anyway? Personal loans often carry higher interest rates regardless of the lender.
 

·
Registered
Joined
·
2,837 Posts
If you're taking a loan out, this doesn't sound like money you can afford to lose. Does this business have a track record of sales/profitibility? Have you outlined what kind of returns or dividends you expect? Have you discussed the amount of input you'll have on major business decisions, like expansion, new product/service offerings, changes in suppliers, etc.? Could be a fun venture, just make sure you think it trough. Seeing an attorney may be a good idea too.
 

·
Registered
Joined
·
15,615 Posts
Never loan more than you can afford to lose. In fact, if it's a good friend, just give them the money and hope for a share of the profits.
 

·
Registered
Joined
·
3,560 Posts
Read Anthony Bourdain's "Kitchen Confidential". Or any of a million other sources that explain how and why most restaurants go belly up within a year or two.
 

·
Registered
Joined
·
9,658 Posts
I'm pretty sure there are plenty of websites that allow you to shop loans. Kind of to loans what Expedia and the like are to flights and hotels.

I'll try not to pile on here.......but seeking advice from strangers on a cycling website about taking a personal loan to give a food business loan to a friend sounds like a pretty good recipe for disaster.
 

·
Registered
Joined
·
2,837 Posts
I'm pretty sure there are plenty of websites that allow you to shop loans. Kind of to loans what Expedia and the like are to flights and hotels.

I'll try not to pile on here.......but seeking advice from strangers on a cycling website about taking a personal loan to give a food business loan to a friend sounds like a pretty good recipe for disaster.
I see what you did there...
 

·
Registered
Joined
·
1,415 Posts
If you're even part serious about this then talk to a lawyer. He or she will likely tell you to go ahead with a small loan but anticipate losing your investment. Speaking from experience.
 

·
Registered
Joined
·
8,224 Posts
Restaurants, and new businesses in general, fail at a rate of about 60% within 3 years.

Do you really want to take out a loan on something that is 1.5 times more likely to fail than succeed?

Add to the already bad odds the fact that the venture seems to be vastly under capitalized (thus your need to take out a loan), failure is an almost certainty.
 

·
Registered
Joined
·
19,389 Posts
My goal this 2017 aside from losing weight :D is to invest in my friend's food business. She would do all the deeds I would just be her financial partner. I'm looking for a credit company that offers personal loans with low fixed interest rate. Any suggestions?
your goal for 2017 should be to have better goals....and lose weight.
don't take out a personal loan to help finance a friend's business. period. don't do it. ever.

maybe pick up the guitar to learn that song you've always been interested in....that's a better goal. keep your personal finances (and loans) out of business.
 

·
Registered
Joined
·
4,979 Posts
You might be exposed to losing more than the money you put up. Be careful. And, not to mention, you don't even have the money to put up, you want to borrow it. A double problem in a sinking morass. And personal loan? Collateralized or signature? What's the collateral? House? As said, why can't they get the loan? Stay clear...
 

·
Registered
Joined
·
5,393 Posts
I would be more productive to just go and get some groceries and try and push them out the door than to load a friend money. At least you know within about 30 minutes if you are ok... or not.
 

·
Banned forever.....or not
Joined
·
24,427 Posts
Invest in a friend's food business?

Sounds like a recipe for disaster. Food business have a very high failure rate.
 

·
Registered
Joined
·
7,492 Posts
Sounds like a recipe for disaster.
Get with it grumpy. Jay used this yesterday :rolleyes:

Or were you just stirring the pot ? :D
 

·
Registered
Joined
·
7,492 Posts
I always liked "Too many cooks spoil the broth"
 
1 - 20 of 32 Posts
Top