Financial Loan/Small Business Question

[NySportsfan]

Whats up guys,
I've been on a hiatus from gambling and been on vacation so I haven't been posting but hope everyone's doing well. My question is as follows.......I'm asking in broad terms as an example, Let's say I have good credit and desire a bank loan of $5,000 to start a small business, because I don't have the available cash to sink into my activity. I have $10,000 or thereabouts in mutual funds, stocks, bonds, etc, that I'd like to use as collateral to the bank because of my relatively short credit report(it's strong but only 3 years old). Would banks generally grant you a personal installment-type loan over say 36-48 months where you can pay x per month, and you use your investments as collateral, so theoretically they can take them away if you don't pay the loan, I'd rather have an idea on here before I call the bank, I'm very responsible with debt and if my business can produce more than the loan amount per month it is well worth it, thanks for the help guys

Mike

 

[Irish]

my 2 cents......
Worse case :chairshot go to a high intrest loan place like (sorry Jack if posting names is a no-no) American General Finance or Benefical. I personally would not use these places because the rates are very high, too high IMO (you get 5K but really you owe like 7K) but if you need the money quick and you have no other outs it might be something to look at. My suggestion would be to work with a bank, maybe get a co-signer with a longer credit history. But if you need it the other option is there to try. I hope it helps good luck to you.

Irish

 

[buddy]

does inquiring about a $5,000 loan and the start of football season have anything to do with each other?

lol

 

[S-Love]

only if he followed your picks last year

 

[NySportsfan]

LOL no buddy it doesn't have any correspondence. I don't need the money for bills or anything like that, It's just I'd rather use someone else's money and leverage that instead of tying my own up, same as people cashing equity out of property to buy another property, I'm just wondering if banks consider mutual funds and things like that, collateral.

irish,
I appreciate the thoughts. It's not that I owe a bookie money or anything, so I don't wanna be raked over the coals, I have good credit just only 2-3 years long, and some collateral, so i'm trying to get a regular bank installment loan, paying 2k interest is crazy but I guess if people are in debt they'll do it

other thoughts appreciated guys thanks a lot

Mike

 

[BobbyBlueChip]

Hey, Susie's back!!!

Contests again this year?

 

[ryson]

Have you tried eloan.com? From their site:

Personal Lines of Credit*
Don't own a home? Need to borrow less than $20,000?
An unsecured personal line of credit is the right option for you. Consolidate your debts. Pay for home improvements or a special event.

 

[S-Love]

you bet Bobbie!

looking forward to another season of our ill-natured banter...maybe you'll give a better effort than last season when you failed to prevail over good ol' Mr 12-27 in the NCAA contest

friendly side bet?

 

[NySportsfan]

ryson,
haven't tried eloan, thanks. It's a little hard for me because I don't have one stable everyday job, I do various different things to make ends meet, so it's hard to show income, I can show good credit and some collateral though, I thought the bank I do my banking with would be easier because they have me as a customer and would be more inclined to do business with me, just a thought, thanks

 

[BobbyBlueChip]

Susie,

Hard not to be impressed with the fact that you're talking smack to other 'cappers when your documented record was so abysmal. Unfounded cockiness is something that I absolutely admire.

So I'm up for a side bet, but take it easy on me, because I rarely have any money after football season and it's not very likely that I'll finish 3 full games over .500 again.

Let me know what you have in mind.

Nice to have you back.

 

[S-Love]

Blue- nice to see you stick up for your buddies, but I keep forgetting when it comes to records how you've done the last 3 seasons.

I'll work on the side bet- maybe some regional fare up for grabs?

 

[BobbyBlueChip]

Looking at my closet, it is short one Boston College jersey, I don't like the new Nike ones, but I would love this one in an XL

Replica one is fine (somewhere in the $50 range). Same scoring as the Bestline contest.

Can I pencil you in for an ND jersey? XXXXL? I'm just guessing.

 

[BobbyBlueChip]

. . . and NYSportsfan, a bank would absolutely use convertible investments as equity. Find a small local bank to handle you loan amount. Sorry for hijacking your thread.

 

[skulldog]

NY, if in your opinion the business is a viable one, then cash the mutual funds, stocks, etc and then once the business takes off, you now have something tangible to show the bank should you need more $$. I use other people's $$ all the time, but in this case I'd use my own $$ to start. Bobby and irish gave you good advice as well if you want a loan. GL

 

[worm44]

Email me and If I like the idea I will go in as partners with you and give you the $$$$

 

[kosar]

Email me and If I like the idea I will go in as partners with you and give you the $$$$

That would be incredibly stupid, unless you don't have a problem going halfsies on his teasers.

 

[worm44]

umm-It was tongue and cheek-sarcasm-joke--get it?

 

[kosar]

umm-It was tongue and cheek-sarcasm-joke--get it?

Got it. If it was pretty much anybody else I would think they were joking, but since it was you, I took it seriously.

But aside from that, your joke post is exactly what this troll is looking for.

 

[worm44]

Sorry, I dont know him that well and I am pretty sure that nobody in there right mind would give .01 cent to anyone over the internet....in a gambling forum no less-thats why my original post was meant as humor ...no harm no foul, sorry if my reply was terse I thought people would know I was joking..........GL all

 

[dawgball]

BBC is right. A bank will loan against a portfolio. That is how we got the cash to start our first business. Shop around, though. BOA would only loan 75% where Suntrust would loan 85% with a lower interest rate.

This method works well if you do believe in the business idea, but you do not want to go through the hassle of liquidating your portfolio and dealing with the tax implications. IMO, if you are able to do this, it is much better than giving up equity in the company to VC funds. But remember, the portfolio is theirs until the loan is repaid. There's no turning back on that one.