Investment loans to new business owners

Discussion in 'Starting & Running a Business' started by nitro-nige, 12th Feb, 2010.

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  1. nitro-nige

    nitro-nige Active Member

    Joined:
    2nd Jul, 2015
    Posts:
    43
    Location:
    Melbourne
    I'm looking at leaving my current job and starting out in business for myself.
    We (my wife and I) are also looking at buying an IP.
    Do the banks have rules and criteria on how much they will loan new business owners for investment and when?
    I'm thinking maybe we should buy the IP before I quit.
     
    nitro-nige, 12th Feb, 2010
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    12,412
    Location:
    Sydney
    Yes, you will generally need to show at least 2 years of business earnings to prove your servicability for the loan.

    I'd suggest buy the IP first. Will you have enough money also adequately fund your business? Most new businesses fail due to a lack of capitalisation (ie. they run out of money before they become profitable)
     
    Simon Hampel, 13th Feb, 2010
    #2