Mar
12
2009
when do you make the first payment on a business loan?
Author: Wade Henderson
lhfams asked:
A friend and I want start up our own business and expected to need $225,000 for the building and start-up cost. When will a bank want us to start making loan payments? It will take some time to get enough customers to pay expenses, wages and a loan payment. How does this work? Does a bank really epect loan payment from day one? Do you increase your loan request to have cash reserves to make the loan payments and pay for other expense?
Thanks for any help!
For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.
A friend and I want start up our own business and expected to need $225,000 for the building and start-up cost. When will a bank want us to start making loan payments? It will take some time to get enough customers to pay expenses, wages and a loan payment. How does this work? Does a bank really epect loan payment from day one? Do you increase your loan request to have cash reserves to make the loan payments and pay for other expense?
Thanks for any help!
For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.
Tags: Bank Loan
For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.
It depends on the terms of the loan, usually you start making payments within 30-45 days.
Some loans are written for annual payments, some have a delayed start date.
You need to negotiate that as part of the loan package.
For Commercial Finance Loans – Factoring Loans * Equipment Financing * Purchase Order Finance * Commercial Mortgage – IMM Financial has been in the Commercial Finance Business serving companies just like yours for over 14 years. Put our experience to work for you. We are the Cashflow Specialists.
It all depends on what kind of a loan you have. You could make arrangments with the bank for first payment due in 30,60,90 days six months or even one full year. You really need to look at your loan agreement and find out when or even better if you do not have a loan yet then negotiate with the financial institution about when. It helps having a good business plan or proposal with you explaining to them in detail what kind of revenue you are expecting to have and how quickly and what methods you are going to use to attract the clientele.
What kind of business are you guys going to run. If You accept credit cards then you could just get by for the firs year and then get your credit line against your credit card transactions. It will save you a lot of money on interests and you can access it anytime you want. Hope this helps.