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Restaurant Business Loan

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  • 22-11-2011 3:59pm
    #1
    pranal
    Registered Users Posts: 35 ✭


    Hi Boards,

    Opening a restaurant in march 2012, have upto 60,000 investment,probably need 25000 more before we open.

    What are the options?
    Is it better to try with the banks or credit union?

    I have heard that the CU gives loans upto 3 time the savings.
    Currently i dont have an account in CU, it it good thin to open an account now and deposit 15000-20000 savings and apply for a loan of 45000 in march.

    I dont have any assets here in the country, to show as security, does it effect my loan application?

    I currently dont have any loans. Took a car loan in 2004 from AIB, which is fully settled.

    I was looking at first-step.ie website, It says that they lend upto 25000 for new start-up businesses. If so what is the criteria for first-step.

    I am planning to go to a local CU branch, will it be wise enough to explain the exact situation and get the feedback or just go and open an account and do it as planned

    any feed back is welcome

    Kindest Regards
    Pranal


Comments

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    #2
    mentor1
    Registered Users Posts: 3 ✭mentor1


    Hi Pranal,

    you say that you looked at the First Step website. In case you missed it !! they have a downloadable application form on their site. I think they well worth the effort to engage with them as they have been around for many years and are very well respected. It would appear that you are in a reasonable financial position,,, this will help you in your efforts to secure the rest of your funding.

    May I wish you much success in your efforts to open your restaurant !

    I am in a similar position to you and I am chasing funding to open a new restaurant in Dublin.


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    #3
    MyPerfectCousin
    Registered Users Posts: 741 ✭✭✭MyPerfectCousin


    The interest rate at First-Step is higher than the banks. Also, some of the banks like BoI have a start-up business interest rate that applies to the first couple of years. (e.g. approx 4%).

    As for the credit unions, in some cases when you borrow based on your savings, they freeze your savings until the loan is paid off, so you need to keep that in mind in case you might need access to those funds in the meantime.


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