Finance Questions

Posts Tagged ‘insurance’

Question: Any tips on how to finance startup cost for small business with no money down but excellent credit?

We are going to sell autos on eBay motors and off our lot, auto detailing and repairs. We have been to a couple of local banks and just don't quite seem to fit their criteria. We've always been self employed in some form so our tax returns are pathetic. We don't have any money to put into the business which, well, that's why we need financing. Am I to believe that a business can't be started unless you have thousands of your own money to put into it? SBA apparantly requires 25% of the loan amount to be available from us as cash. If I had that money, I probably wouldn't need much of a loan. Anyway, I'm a bit frustrated because we're not fitting into the commercial lending 'box'. We are talented intelligent people with excellent credit but short on cash. Any ideas?

Answer: This is a free capital society ---- you are able to raise capital from private investors. "Friends and families" or someone that would really get how lucrative this could be. You don't need banks at this stage. SHORT SUMMARY---Put the numbers together, a short biz plan, talk to people about having them invest in you and offer your own interest terms using a promissory note or offer stock in your new company. You'll need the help of someone that has done it or a legal professional but it is VERY common...I've raised a million plus. Or get people to invest with their services for a piece of the pie. Any local auto dealers would be interested in your deal? Also, consider doing something smaller to start and scale it up so people will have confidence in investing.

Motor Finance Job

Question: Would you accept a job with General Motors considering the state of the motor industry?

I live in the UK which also has major economic problems as I am sure you are aware. The motor industry is particularly affected by this. General Motors has 2 big sites in the UK and I have a job interview with them to work in the finance team. At the stage in the interview when the interviewer asks if I would like to ask him/her any questions, my first question will be "As somebody who works for GM, are you confident you will still have your job in a years time?"
What are your opinions on this.
Obama is keen to get GM up and running with the 60 days worth of financing. Gordon Brown is keen to get the motor industry up and running with the introduction of the car scrappage scheme that worked well in Germany by increasing car sales by 40%.
Do you think that GM is too big to fail or not? Would you accept a job with them?
I am currently at university. I have about 4 months until I finish. I could accept the job or keep looking for another job.

Answer: GM is not too big to fail. I would not accept a position with them at this point. They are shutting down 13 more plants here in the US. They are going through 1 billion/week just to keep the company going. Even though more Fed Government money is being loaned to them, this is the second time in less than 3 months...with no positive change. (and remember these are loans) They will no doubt declare bankruptcy this year, as will Chrysler. I would continue to job hunt. Remember, the first hired, are the first to be let go. Invest your time elsewhere. (Michigan resident)

Hardie Cars