Question

Imagine yourself preparing to open a new restaurant. While you have never owned a restaurant yourself, you have over twenty years of experience in the industry, starting as a host(ess) and working up to a manager. You have approached many banks for loans, and have been turned down by all, since the restaurant business is very risky. What avenues might you pursue to gain the financing you need? For example, think outside of the box when it comes to considering how much you've expanded your personal and professional network due to your 20 years of work in the restaurant industry. If you do go the bank route, how might you overcome their objections to the risks inherent to the industry?

Answer 1

For the borrowing the amount for any startups the bank do check the credibility of the person who is thinking of the idea and the ability of that person to pay back the loans on time . As per taking a loan bank is the best place for the borrowing of loan and is trustworthy .

The objections can be over come by many ways that is --

Building up of trust to bank -- By the way of building of the trust to bank as i have worked hard for the development of myself in the corporate world have earned money and my good linkups who will lead me to the good growing of the restaurant . I will try to make sure that this business i less risky and with the linkups i can get the things and the good quality of food and good place to start it so that more customers will get attracted .

Showing the credibility of myself - By presenting the credibility of myself to the bank that how much amount of money i m having and the properties too due to will i can be able to pay to loan or if i will miss to pay it they can recover the amount with interest from my properties and the bank account details . If the my credibility of me will be equivalent to the amount of loan i m demanding then i can get the loan on time .

Putting the properties of same values as mortgage - As i can also put my properties as a mortgage to bank so that they will be sure about my loan and its payment or if not paid then the recovery of the amount by these properties . As due to mortgaging the properties the bank will have the chance to recover there money on time without any problems .

Presenting the links who can bear the value from my side ---- In some other way i can present the links of mine to them who can bear my loan at the time of recovery . They will pay the rest of the amount that will be remaining at that point of time . They will make sure to bank that if the total amount wouldn't be able recover than they can get reach to my links or " trustees" .

Sign a contract for the bills of exchange -- Just in case, my trustee who will bear my remaining amount can sign a contract of bills of exchange over me with the bank so that bank will have the prove that we have had a contract between us for the payment of the remaining amount of the loan . By this banks can reach to us at the end of the loans tenure .