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Investment advice/help

  • 31-08-2008 10:10pm
    #1
    Slimbo
    Registered Users, Registered Users 2 Posts: 125 ✭✭


    Hi All,

    Three of us have invested in a restaurant in Dublin which is nearing completion.

    We are short some capital to finish the job, about a fifth of what we have invested.

    Would a bank loan us the remaining amount to complete the work, which will take 3 weeks tops.
    I don't want to put money from my other interests into this as I need to keep m day job going and we all agree that a business loan would be the best approach, but will the bank lend to us to get us over the line so to speak to trading stage?

    Or are there investors/venture capitalists who can be approached for this money in Ireland that people know of?

    Can anybody give me some advice.

    Thanks in advance for your help.


Comments

  • #2
    homer911
    Registered Users, Registered Users 2 Posts: 5,150 ✭✭✭homer911


    Gut reaction would be NO, but you really wont know unless you ask

    Putting aside the fact that so many restaurants go bust in the first 3 years of operation, a lot of banks wont deal with a startup at the moment without some pre-existing relationship and a serious business plan. What security would you offer?

    I wish you all the best though...


  • #3
    All in all
    Registered Users, Registered Users 2 Posts: 434 ✭✭All in all


    If you discuss with your accountant he may have access some cash rich individuals who would be willing to invest. BES may also be an option.


  • #4
    dunkamania
    Closed Accounts Posts: 1,803 ✭✭✭dunkamania


    Banks have tightened lending alot in the last year, more than they like to let on. I would say that they will looking for a reason to say no. :(


  • #5
    Jivin Turkey
    Registered Users, Registered Users 2 Posts: 2,966 ✭✭✭Jivin Turkey


    Sorry to put a dampener on things but if you have run out of capital before completion the serious problems have already started.

    Interest payments will be a serious drain on monthly cash flows, which are by no means certain yet, while rent, wages, creditors, advertising/publicity and other overheads are.

    I really hope you've done your homework regards the market you're targeting and how you are going to position yourselves. So many people set up restaurants as they enjoy a good meal but without any real first hand experience in the trade.

    I'd suggest looking for another equity investor, which you'd be surprised how many their may be, to cover the last bit of the set up and cushion your initial few months cash flows.


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