Should I get a Loan?

Hi, I need some help and advice if I should get a loan or not. The type of loan that I would be getting is a personal or business one, the amount of money would be $20K.
What will I use the money for?
Well I have been browsing many different sites looking for businesses to invest in / buy. I found a couple that are making $100/day which to me I thought is good enough since I will be making enough money to pay back the loan and also I will have some money left over. With the reset of the money I will use to start up my web hosting company that me and my friend are working on.
So I am wondering if this is a good idea? Also can anyone guide me to a place to get a loan or do you know anyone that will let me borrow that much as I be able to give you the info needed to apply and also sign any papers and then fax them to you.
I would need the loan ASAP.
Thanks for help me out.

 

If you're working on your own web hosting business I wouldn't really bother with a loan. In my opinion the hosting market is too saturated and all bases are covered.

Have you tried getting in contact with your bank/bank manager?

 

Yah, but inorder for you to get a loan from them you need to have a big business plan showing everything that you are going to spend the money on, etc. It gets very complicated and might take a while before you get one. Plus I need one ASAP like within in a day if that is possible.

 

This might not be what you want to hear, but getting a loan from any traditional source (for business) is out. Aside from the biz plan stuff, you need to demonstrate that you have the ability to run a business--experience, education and so forth.

If you have assets, you should be able to do something there. If not, you're going to have to look into a signature loan or friends/family.

Also, if you don't have a business plan already, perhaps trying to come up with $20,000 for a business isn't the best course of action. Can you do something on a smaller level to start with? Try finding something that's $500-$3,000.

Anyway, as to your loans, try to find friends of family. Anything else, even if possible, will rake you over the coals and you'll lose it all most likely.

 

I agree with marketjunction, it is very hard to get a business loan without a good business plan and a good reputation. Most traditional sources refuse to lend that kind of money for an Online start-up unless you have a super idea that is original and not just a copy of other businesses Online. You may be able to get a personal loan if you have good credit but you will pay a much higher interest rate. I believe the going rate is in the neighborhood of 15%. This is not big deal if you can really make $100 a day but I would make sure that you are sure you can make that.

I suggest you start smaller and work up you business. If not you have a choice of personal loan, credit cards, or friends and family.

Good Luck

 

Go for a personal line of credit. It'll be best and allow you to invest money in what ever you want, as long as you can make the payments.

 

O, thanks for the advice. Anyway I lowered my loan amount to $10K because instead of getting two business, I am only getting one now which to be I thought is good enough.

 

99% of all businesses fail eventually. One reason is they are started/run by people that can't grasp one simple concept. Don't chase more than one rabbit at a time.

Think about it. If you haven't even make one thing successful, what makes you think that you can do two?

That applies to a single business too. Take the Internet. Rather than starting with many sites, start with one and make it successful. Once you do, you can proceed if you wish.

 

I think you are going to have to find a friend or family to give you this loan.
It's very hard to make a stranger believe in you, especially if you are thinking of getting a loan from DP.

Also I don't think you will have success with getting a loan from a bank.

As people on DP said earlier in this thread, you will have to present a big business plan and It will take alot of time... Looks like you don't have time.

I think you should start from 0, I did it, so you can do it to.

 

WOW Thats exactly what im doing now. Just made one site its making around 3k a month im now starting a 2nd, a private mmorpg game server.

 

"Rather than starting many sites, start with one and make it successful."
This is great advice, Marketjunction. It's so easy to start multiple projects, and then not have the time needed to make each one hugely successful. Start with one project, get it profitable, and then keep working to make it even more successful/profitable before moving on to the next project.

@thegtz - See how much money you can raise by talking to family and friends. Or you could explore a 0% interest rate offer on a credit card. (Be careful with this, though. Depending on your skills, money management, and confidence in your business idea, using a credit card may not be the best route for you.)