Results 1 to 8 of 8

Thread: FINANCING WITHOUT A BUSINESS PLAN

  1. #1
    New Member
    Join Date
    Dec 2010
    Location
    Johannesburg
    Posts
    3
    Thanks
    2
    Thanked 0 Times in 0 Posts

    FINANCING WITHOUT A BUSINESS PLAN

    Here's a quick one?

    Does anyone know of financing options for a Restaurant venture WITHOUT a business plan? - essentially looking to finance it as a personal loan; amount is in the region of R1 Million:

    Here's the details:
    1) As collateral, my assets are 2 other Restaurants:
    a) One valued at R3.5million, pre tax profit in region of R100 000 a month
    I also draw a POST TAX salary additionally of R41000 a month
    Personal monthly expenses amount to around R30000 a month
    b) Second Restaurant valued at R1million, pre tax profit around R30 000 a month

    2) Puts my net monthly income around R120 000 a month post company and personal tax, with expenses around R30 000, and Assets for collateral EXCLUDING my property interests at around R4.5million

    3) Finally, reason for NOT persuing the traditional bank route due to NOT wanting to submit business plan of restaurant for aquisition due to urgency of need of funds as restaurant likely to be sold within a month;


    Please advise!

    Thanx in advance....

  2. #2
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    2,671
    Thanks
    88
    Thanked 544 Times in 460 Posts
    Blog Entries
    1
    Best here is to do a short term personal loan with one of the banks. In the past I used Investec, but I believe Standard also does this.

    The only problem with this is that you may not pay the loan in a shorter time, and you can not pay in more than the agreed rate.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

  3. Thanks given for this post:

    Asinamali (30-Dec-10)

  4. #3
    New Member
    Join Date
    Dec 2010
    Location
    Johannesburg
    Posts
    3
    Thanks
    2
    Thanked 0 Times in 0 Posts
    Thanx Justloadit

    My understanding is that Banks limit personal loans to about 150k; perhaps u know better or a contact that I can liaise with directly?

  5. #4
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    2,671
    Thanks
    88
    Thanked 544 Times in 460 Posts
    Blog Entries
    1
    I contacted Investec directly and asked who to speak to with respect to a short term loan. If you have an account at a bank, phone your personal manager to discuss, with the numbers you work with, I am surprised the bank has not allocated a personal manager for you.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

  6. Thanks given for this post:

    Asinamali (31-Dec-10)

  7. #5
    New Member
    Join Date
    Dec 2010
    Location
    Johannesburg
    Posts
    3
    Thanks
    2
    Thanked 0 Times in 0 Posts
    yup, will do, I'm with Nedbank, I guess the Big-4 Banks don't really care....

  8. #6
    Silver Member
    Join Date
    May 2010
    Location
    durban
    Posts
    413
    Thanks
    121
    Thanked 61 Times in 52 Posts

    private loans

    Easiest by far is to raise private loans via firms of attorneys that do this sort of thing (i personally do not know which ones).These come at higher interest rates. Of course they will need collaterals in the form of property etc. Your businesses, no matter how profitable you say they are, will probably not do. As you would have discovered, banks will readily give loans to private salaried individuals as opposed to new business ventures. Also give thought to asking for an overdraft on the existing businesses as there is history here as to profitability,and banks want to see that one can meet their interest payments.
    Finally i cannot see why you do not immediately enter into a sale agreement with the necessary suspensive clauses built in that relate to raising of the required finance.
    Best of luck.

    Just remembered that there is a Gary Simmonds, a member of this forum, who might lend advise or should i say lend funds. these might come at a high cost. i did try in this forum to obtain an actual cost but was not successful.
    Last edited by flaker; 31-Dec-10 at 08:57 AM. Reason: addition

  9. #7
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    2,671
    Thanks
    88
    Thanked 544 Times in 460 Posts
    Blog Entries
    1
    Even overdrafts require personal guarantees, so not sure if this will be the right route, besides that, over drafts are renewed every year, and if they feel uncomfortable, will require the full amount back immediately, placing you in a very dire straight. A loan has a fixed term.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

  10. #8
    Email problem
    Join Date
    Jun 2012
    Location
    USA
    Posts
    5
    Thanks
    0
    Thanked 0 Times in 0 Posts
    I think it is hard to finance a business if you don't have any business plan, because it is your key to get a venture capital to fund a business.

Similar Threads

  1. Business Plan Template
    By busyman in forum General Business Forum
    Replies: 15
    Last Post: 07-Mar-12, 12:30 PM
  2. [Article] Business financing
    By barryvdw in forum Business Finance Forum
    Replies: 5
    Last Post: 24-Sep-10, 07:28 PM
  3. [Article] Financing business
    By QUINN in forum Business Finance Forum
    Replies: 2
    Last Post: 06-May-09, 09:51 AM
  4. Business Plan. What to look out for?
    By Snoopy_inc in forum Entrepreneurship and Business Management Forum
    Replies: 95
    Last Post: 02-Jul-08, 03:33 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •