Hello Tycoons, Good day, please I need advice here

I needed to start a business with 400k but I don't have a Shop, If i have to rent a shop I would need to pay at least for 12months 20k x 12 = 240k and I will be left with 180k now less than I would need to start the business.

Now I was thinking of how to get money to do this I don't have anything to use as a collateral if I decided to take a loan from Bank, so I came up with this Idea.

Get a Loan from Bank and Buy a shop you would Use as a Collateral for the loan.

I will take a loan from the Bank and buy the shop (it automatically becomes mine) they (Bank) now take the documents as collateral until I'm able to finish paying back the loan.

SO I don't know how possible this can be. but if possible; I know its a good calculated risk, because at worst (If business fails) just as in every business I lose just capital(400k), then bank will sell the shop and recover the their money.

Secondly, it a business I must start with 400k the return could be 200k monthly.

What do you advice me?
How possible it to get this loan? Thanks for you advice and suggestions

Have u think of the recurring interest you will be paying on the loan plus start up cost and other running expenses,
obviously we are have started talking about profit here we only talking capital inflow to sustain the biz.
i don't think it ever a good idea to start a biz with bank loan, it always good to start no matter how small, then as it progresses you then can start thinking additional capital..

have you considered the third option?

Ikebossmann:
have you considered the third option?

Which is?

NetBizguy:
Hello Tycoons, Good day, please I need advice here

I needed to start a business with 400k but I don't have a Shop, If i have to rent a shop I would need to pay at least for 12months 20k x 12 = 240k and I will be left with 180k now less than I would need to start the business.

Now I was thinking of how to get money to do this I don't have anything to use as a collateral if I decided to take a loan from Bank, so I came up with this Idea.

Get a Loan from Bank and Buy a shop you would Use as a Collateral for the loan.

I will take a loan from the Bank and buy the shop (it automatically becomes mine) they (Bank) now take the documents as collateral until I'm able to finish paying back the loan.

SO I don't know how possible this can be. but if possible; I know its a good calculated risk, because at worst (If business fails) just as in every business I lose just capital(400k), then bank will sell the shop and recover the their money.

Secondly, it a business I must start with 400k the return could be 200k monthly.

What do you advice me?
How possible it to get this loan? Thanks for you advice and suggestions

When I saw this topic, I thought it was a joke.

A brief breakdown of your costs when you start off.

1. N20, 000 rent.

2. N Interest on bank loan to rent shop

3. N Interest on bank loan to purchase goods/ stock.

Now who tells you that once you open a shop that business starts rolling in profits ? Banks don't finance start ups too.

You may not even cover up to N20, 000 Gross profit in the first month. Be careful or just take your money and place it on fixed deposit. You have much to learn..

Indeed bro I have much to learn thats why am here

I can help you with the loan, first tell me what types of business you want to do.

fgr63:
I can help you with the loan, first tell me what types of business you want to do.

Do u work in a bank? I need a loan of N600k to scale my business if interested, kindly send a mail to shirtsbycynim@gmail.com

Thanks