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Opening a Coffee Shop

  • 08-10-2007 11:04am
    #1
    Registered Users, Registered Users 2 Posts: 128 ✭✭


    Hi guys,
    This is my first post here.....
    Myself and my friend are planning on opening a coffee shop, hopefully in the near future...
    We are at the research stage at the moment & have been looking at premises etc; lately.
    We are going to go & see some Business Managers in banks over the next few weeks but are very unsure of the money side of things.
    What way do Start Up Business Loans work? We don't want to look stupid! Would we need 5%? 10%? of the total we want to borrow?
    One of the businesses we are looking at has a lease for sale - €90k, the rent per year is €21k - could we borrow both together? Can't seem to find any specific info on bank websites.......
    All answers appreciated!!
    Thanks.


Comments

  • Registered Users, Registered Users 2 Posts: 10,846 ✭✭✭✭eth0_




  • Registered Users, Registered Users 2 Posts: 128 ✭✭carrieb


    Thanks for that...
    Problem is it doesn't give you any idea of how much you'll need. Looks like we'll just have to ask on the day. They all tell you about the great services etc; but unlike a mortgage there doesn't seem to be any sort of basic amount that you can borrow/need to have etc;


  • Registered Users, Registered Users 2 Posts: 10,846 ✭✭✭✭eth0_


    I'd imagine it depends on how feasible they think your business plan and income projection is.


  • Registered Users, Registered Users 2 Posts: 128 ✭✭carrieb


    Thanks etho - the problem is we are having trouble with the business plan part! We have not decided on a def location, we are looking daily on the net at premises that are for sale and so it will all depend on where we can get one..
    Anyway, onwards & upwards!
    Thanks..


  • Closed Accounts Posts: 87 ✭✭posiedon


    If you are looking to purchase a property with no previous business. They will most likely require you to take the loans out personally or at the very least gaurantee them personally. This also seem to hold true with general loans.

    As always the banks will not take on any risk, so be prepared to tot up your personal assets as this is what they'll ultimately be interested in. It's generally expected to see a reasonable contribution from the owners before any bank will lend. This used to be at around 20 to 30 %. However maybe times have changed now. As excited as you guys might be about the venture, your bank will not be in the same frame of mind. Also business lending rates are pretty high in comparison to personal banking.

    That's just my experience, but best of luck with the venture.


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  • Closed Accounts Posts: 6,123 ✭✭✭stepbar


    PM me with the details. I work for BOI and would be able to give you an idea.


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