bar in spain / best loan ?

jamiecoins

hi i have been really intrested in this idea and have been to spain last weak checking out areas and local bars chatting to owners etc .
looks like ill need a lump some as the start for deposit and legal/ licence fees
then pay monthly rent/ gas/elec and other taxes
im not employed at the moment but save as much as i can in the cred union every weak also my gf adds money to the weakly savings the cred union know im not working but im a good saver and have a amount saved up looks like id need roughly 16-20k to pay all costs and have around 3-5k left as back up money or to pay the firsts few months rent im lookin at a place with an apartment included and i dont plan on pulling a wage or my gf as we will both be running it im a ex bar manager but she has no exp but will do the cooking as she loves cooking so its win win with working just plan on covering rent feeding ourselfs and paying the bills for at least 6 months and maybe pull a wage in the high season which wont be spent more than likely anyway im baffling i was wondering if i ask the cred union for a loan do i tell them im going to spain with the money ill have my father as guarntuer on the loan who also saves there for over 30 years or do i say its for a car which would be lying and i dont want to do that and if anyone has ran a bar id love to hear from u thanks for reading its like a short novel lol

Carra23

jamiecoins wrote: »

hi i have been really intrested in this idea and have been to spain last weak checking out areas and local bars chatting to owners etc .
looks like ill need a lump some as the start for deposit and legal/ licence fees
then pay monthly rent/ gas/elec and other taxes
im not employed at the moment but save as much as i can in the cred union every weak also my gf adds money to the weakly savings the cred union know im not working but im a good saver and have a amount saved up looks like id need roughly 16-20k to pay all costs and have around 3-5k left as back up money or to pay the firsts few months rent im lookin at a place with an apartment included and i dont plan on pulling a wage or my gf as we will both be running it im a ex bar manager but she has no exp but will do the cooking as she loves cooking so its win win with working just plan on covering rent feeding ourselfs and paying the bills for at least 6 months and maybe pull a wage in the high season which wont be spent more than likely anyway im baffling i was wondering if i ask the cred union for a loan do i tell them im going to spain with the money ill have my father as guarntuer on the loan who also saves there for over 30 years or do i say its for a car which would be lying and i dont want to do that and if anyone has ran a bar id love to hear from u thanks for reading its like a short novel lol

Don't tell them your planning on going to Spain with the money unless your guarentour has a bank balance of maybe treble the amount you plan to borrow, then the might consider lending.

You said you are currently unemployed right ? Do you think they would lend you 20k to buy a car ? you also said you don't plan to pull a wage while on your adventure in Spain but do you intend on making enough to clear the entire loan during the 1st peak season ? If not how will you service the loan when business in the bar trade in Spain is practically non existent outside of peak season ?

Hate to curb your enthusiasm but I think you need a more concrete plan. I am not in business by the way so take what I say with a pinch of salt but the idea of going to run a bar in Spain is great and I am sure you would make a great success of it but 20/25k is alot of cash to borrow with out a clear plan.

BnB

To answer your question, I don't think the Credit Union would go for the plan. To be fair the credit unions they are infinitely more reasonable to deal with than the banks and they will listen to you. It certainly would help having your father as a gaunter. Also, the fact that you have managed to continue saving while out of work will go in your favour too. But I think running off to Spain to open a bar will be a bridge too far for them.

The new car story is even worse. Buying a new car for €20k when you are out of work would be seen as utter madness. I think you’d have less of a chance of getting it this way than telling the truth.

I think your best chance of getting it (if it is an option) is asking your father to take out the loan fully in his own name altogether and you paying it back.

The other thing I would say is, your need to look at your plan a bit more. I wouldn’t be saying don’t do it…. Just be very careful of what you are doing and if you do go for the loan, don’t waste it.

AstonMartin

I cant imagine 20k would be anywhere near enough for this.

i only say this as if you run out of capital and have to close the doors it will be a short expensive holiday.

if you wouldnt mind posting some of your projected costs you will get a better insight.

chalkitdown

Unlike banks, credit unions have stated terms of association and criteria laid out, if your capital and savings record is as you say, then it should be accepted up to the multiple allowed, normally 3x savings but can be more depending on the terms of your particular credit union. I don't think 'a bar in Spain' would be seen as a good prospect though.

I applaud your spirit and would not dissuade you from doing whatever it takes (in financial terms) to embark on your enterprise.

However, most of the trouble that Ireland is currently in is because of people that over borrowed, so try to be certain of the potential of your venture. Spend even more time in the area, call in for a pint and a chat with the local foreign bar owners, most won't pull any punches about the pitfalls and how tough it can be.

Good luck.