Go Back   English Forum Switzerland > Living in Switzerland > Business & entrepreneur
Reply
 
Thread Tools Display Modes
  #1  
Old 13.03.2007, 20:52
despo's Avatar
Newbie 1st class
 
Join Date: Mar 2007
Location: Wädenswil (ZH)
Posts: 19
Groaned at 2 Times in 2 Posts
Thanked 3 Times in 3 Posts
despo has no particular reputation at present
Setting up business and getting loan!!!

How supportive are the concern offices when it comes to setting up a business (say; Billiard Center) and taking loan (CHF 300,000) keeping in mind that I'm non EU with B permit and married to Swiss woman? How long will the paperworks takes? How easy is it to get loan and at what interest rate will be the best offer? Any information will gladly accepted and highly appreciated. Thanks in advance.
Reply With Quote
  #2  
Old 14.03.2007, 01:36
Jim2007's Avatar
Forum Veteran
 
Join Date: Jun 2006
Location: Kt. Bern
Posts: 2,086
Groaned at 34 Times in 32 Posts
Thanked 2,065 Times in 1,054 Posts
Jim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond repute
Re: Setting up business and getting loan!!!

Quote:
View Post
How supportive are the concern offices when it comes to setting up a business (say; Billiard Center) and taking loan (CHF 300,000) keeping in mind that I'm non EU with B permit and married to Swiss woman? How long will the paperworks takes? How easy is it to get loan and at what interest rate will be the best offer? Any information will gladly accepted and highly appreciated. Thanks in advance.
Well I doubt that any of the banks will be falling over themselves to help you on this one! For starters you need to have a business plan showing how you expect the business to grow so you can pay back the loan. You'll also need to demonstrate a deep knowledge of the business area and some kind of track record of success. After all that you might manage to get a private loan for which you will have to pledge personal assets like a house or something.

My experience suggests that most people who come up with a first estimate like 300,000 usually end up needing a lot more, so make sure you do the numbers first.

Good Luck,

Jim.
Reply With Quote
  #3  
Old 14.03.2007, 09:53
LordMonkey's Avatar
Senior Member
 
Join Date: Dec 2005
Location: Bern
Posts: 496
Groaned at 14 Times in 9 Posts
Thanked 99 Times in 66 Posts
LordMonkey is considered knowledgeableLordMonkey is considered knowledgeableLordMonkey is considered knowledgeable
Re: Setting up business and getting loan!!!

also a good collateral.
Reply With Quote
  #4  
Old 14.03.2007, 22:09
despo's Avatar
Newbie 1st class
 
Join Date: Mar 2007
Location: Wädenswil (ZH)
Posts: 19
Groaned at 2 Times in 2 Posts
Thanked 3 Times in 3 Posts
despo has no particular reputation at present
Re: Setting up business and getting loan!!!

Well, I'm actually trying to buy already established business but just the 50% share(partnership). And the amount (CHF 300,000) is what he is asking at the moment. But I don't have any asset to show if it is needed to get the loan Is there any other option to get some money like; is it possible to use my wife's pension fund for this purpose though she won't be doing this business.
Supposing both the options are available (getting private loan without asset or using my wife's pension fund), which one is more beneficial in terms with interest rate?
Reply With Quote
  #5  
Old 15.03.2007, 02:11
Jim2007's Avatar
Forum Veteran
 
Join Date: Jun 2006
Location: Kt. Bern
Posts: 2,086
Groaned at 34 Times in 32 Posts
Thanked 2,065 Times in 1,054 Posts
Jim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond repute
Re: Setting up business and getting loan!!!

Quote:
View Post
Well, I'm actually trying to buy already established business but just the 50% share(partnership). And the amount (CHF 300,000) is what he is asking at the moment. But I don't have any asset to show if it is needed to get the loan Is there any other option to get some money like; is it possible to use my wife's pension fund for this purpose though she won't be doing this business.
Supposing both the options are available (getting private loan without asset or using my wife's pension fund), which one is more beneficial in terms with interest rate?
Buying into an existing business has a lot of risks associated with it, that are not there in a start up situation - you are buying a history and that history may include potential liabilities for products and services that have not yet crystalized and may jump up and bite you later. In addition you are trying to place a value on the business and ensure that the price you are going to pay is reasonable. And to top it all you need to ensure that it will generate enough cash to pay off the loan.

I don't want to sound rude, but it seems to me that you are out of your depth and what you really need is professional advice - someone who can check this company out in detail, take a look at the books and so on and them come up with a valuation and on top of that come up with a cashflow project to ensure you can repay the loan. All this is beyond answering a few questions on the forum and I would very strongly suggest that you speak with a professional accountant on this.

Best Regards,

James.
Reply With Quote
  #6  
Old 18.03.2007, 14:38
despo's Avatar
Newbie 1st class
 
Join Date: Mar 2007
Location: Wädenswil (ZH)
Posts: 19
Groaned at 2 Times in 2 Posts
Thanked 3 Times in 3 Posts
despo has no particular reputation at present
Re: Setting up business and getting loan!!!

Thank you James for your kind info. I'm still quite desperate to do this business though I don't have enough capital or asset to show to get loan from bank(s) . But I'm quite sure that this business will have more than enough income to pay off the loan(supposing I get the loan). I don't know what to do now I had enough working under someone with those low salary plus all those bulls**t. Am I not really gonna get any loan without any assets of my own(though the business will run for sure)? help please!!!
Reply With Quote
  #7  
Old 18.03.2007, 20:33
Jim2007's Avatar
Forum Veteran
 
Join Date: Jun 2006
Location: Kt. Bern
Posts: 2,086
Groaned at 34 Times in 32 Posts
Thanked 2,065 Times in 1,054 Posts
Jim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond reputeJim2007 has a reputation beyond repute
Re: Setting up business and getting loan!!!

Quote:
View Post
But I'm quite sure that this business will have more than enough income to pay off the loan(supposing I get the loan).
In the old days almost every client I met had the same convictions and usually once we did the numbers it truned out not to be the case.....

Quote:
View Post
Am I not really gonna get any loan without any assets of my own(though the business will run for sure)? help please!!!
I really doubt that you will be able to get a loan unless you have some assets to put up. If this business you are talking about really is a winner, with plenty of money rolling in to pay off loans and so on, then why is the owner willing to sell you part of it for such a low figure......

Best Regards,

Jim
Reply With Quote
  #8  
Old 24.04.2007, 16:07
Killa Silk's Avatar
Junior Member
 
Join Date: Mar 2007
Location: Adliswil, Zurich
Posts: 56
Groaned at 5 Times in 1 Post
Thanked 20 Times in 16 Posts
Killa Silk has made some interesting contributions
Re: Setting up business and getting loan!!!

I agree with Jim. This sounds funny.

I and three others started an Indie record label called Hit-Crib Entertainment here in Switzerland. Myself and another partner are both Americans and the other two are Dominican and Swiss. Besides us four, we have a support staff of 8 (all of which are currently working for free to achieve a common goal).

Our main focus is Multi lingual Hip-Hop & R&B although our studio can be rented for any Artists needs including a band. In addition we offer graphic/web/print services and we have an up and running clothing line called Hit-Crib Urban.

From the onset, we looked into loans form banks but, the Swiss banks are very conservative even if you have a business plan and figures. With this being said, my partners and I did things the odd way.

We built up our studios and offices first using our own resources (while eating bread & water every day ) and after spending hard earned thousands of our own money, we are now up and running. There is still allot of work needed but we can now offer our services. In addition, our first two released singles are currently being played on radio stations and in clubs here in Switzerland and abroad.

Now (since we have something to show to an investor/sponsors), we are looking for investors/sponsors to assist us in acquiring the GmbH and funds to run our business as planned.

Until we find "A Business Angel", we organize various parties and events (that focus on providing opportunities to Aspiring Artists (Male and Female, foreign and national) such as "Friday Night Fights" rap battles. www.hit-crib.com www.myspace.com/hitcrib.

Our main concept is great quality music production services at affordable prices in addition to releasing albums from our own Artists. Our focus is worldwide and not just Switzerland! We have Artists that perform in Spanish, French, English, Swiss and High German, Pigeon English (Nigeria), Albanian and Turkish. These are open markets... In addition we are working on recruiting an Arabic speaking Artists.

From our experience thus far, it seems that Swiss companies are more willing to work with you when you are already established in some sort of way. Hell, we even asked a big name company here "Just sponsor us with pencils and pens", and we were turned down.

Also ask yourself, if you buy into the pool hall, will you be a functional partner with decision making powers or a silent partner?

To me it sounds like the owner is trying to depart from the business. By lowering the buy price, he will attract more interest. Be careful with this one. Is this a chain of pool halls or just one location?

This may sound foolish, but if we had a 300K investor, we would rather have this money invested over a period of 12 to 24 months instead of 1 lump sum. This way we will have an operating budget for projects, and expenses.

Good Luck,

Killa Silk



Quote:
View Post
In the old days almost every client I met had the same convictions and usually once we did the numbers it truned out not to be the case.....



I really doubt that you will be able to get a loan unless you have some assets to put up. If this business you are talking about really is a winner, with plenty of money rolling in to pay off loans and so on, then why is the owner willing to sell you part of it for such a low figure......

Best Regards,

Jim
Reply With Quote
  #9  
Old 08.05.2007, 16:11
cheros's Avatar
Junior Member
 
Join Date: May 2007
Location: Zürich
Posts: 64
Groaned at 0 Times in 0 Posts
Thanked 3 Times in 2 Posts
cheros has no particular reputation at present
Re: Setting up business and getting loan!!!

I STRONGLY recommend to get someone reliable to do a due diligence on the business. Take the accounts and P&L apart, see what product and client base there is, what market trends there are and what the sales trend of the business are.

The kind of questions you're asking seem to suggest you're stepping into this blindly - that is not a good move and Switzerland is pretty unforgiving on matters such as non-payment.

Even if you do this I suggest you ensure you have a plan B to stay afloat. Youre starting in the worst possible place: with debts and no capital reserves to buffer spin up time. Not the best way to go about things.

It may be for the better that you don't have the funds - I personally don't really like what I'm hearing. If it's such a good business, why didn't it attract local investors? It's not like the country is short of them..
Reply With Quote
  #10  
Old 14.05.2007, 23:33
Eperry's Avatar
Member
 
Join Date: Feb 2007
Location: Zurich
Posts: 103
Groaned at 0 Times in 0 Posts
Thanked 14 Times in 8 Posts
Eperry has made some interesting contributions
Re: Setting up business and getting loan!!!

Come to Venture Cocktail. You might get some good answers there! Look in social events. ...
Reply With Quote
  #11  
Old 15.05.2007, 21:25
merly's Avatar
Newbie
 
Join Date: May 2007
Location: aargau
Posts: 3
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
merly has no particular reputation at present
Re: Setting up business and getting loan!!!

My husband and I are going to set up a mobile food business - we have our own house and probably need about 30-50K as a business loan. Just as a matter of intrest what would be the normal rates on a loan like this? 10 percent? Or less? Would you normally go to the bank where we have the mortgage or are there special places for these loans in switzerland.
Reply With Quote
  #12  
Old 16.05.2007, 01:50
Forum Legend
 
Join Date: May 2005
Location: Luzern currently
Posts: 2,565
Groaned at 4 Times in 4 Posts
Thanked 720 Times in 373 Posts
Richard has a reputation beyond reputeRichard has a reputation beyond reputeRichard has a reputation beyond reputeRichard has a reputation beyond reputeRichard has a reputation beyond repute
Re: Setting up business and getting loan!!!

Quote:
View Post
My husband and I are going to set up a mobile food business - we have our own house and probably need about 30-50K as a business loan. Just as a matter of intrest what would be the normal rates on a loan like this? 10 percent? Or less? Would you normally go to the bank where we have the mortgage or are there special places for these loans in switzerland.
Hello, this all depends on the legal structure of your business. In any case to get a loan you would need to provide a business case or security or both. The security part would clearly be your house - if this has any residual capital value. Rates are dependent very much on risk. Expect to pay 10% if the bank deems you high risk otherwise you can pay as low as 4... The bank where you bank is likely to be the best place to start and this is not necessarily where your mortgage is. Also check out start-up help in the cantonal website.
Reply With Quote
This user would like to thank Richard for this useful post:
  #13  
Old 16.05.2007, 08:32
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 6,504
Groaned at 304 Times in 201 Posts
Thanked 8,082 Times in 2,889 Posts
AbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond repute
Re: Setting up business and getting loan!!!

Quote:
View Post
My husband and I are going to set up a mobile food business - we have our own house and probably need about 30-50K as a business loan. Just as a matter of intrest what would be the normal rates on a loan like this? 10 percent? Or less? Would you normally go to the bank where we have the mortgage or are there special places for these loans in switzerland.
I would suggest that if you have to ask what the interest rate might be on the loan, you are far from ready to start such an enterprise.

Surely the rate of the loan + or - 1% will mean the difference between profit and loss, or whether you can be competitive or not? This must form the basis of your business plan.

Personally I would never secure a business loan against your private property. If the business goes under with debts, you'll lose you home...
Reply With Quote
  #14  
Old 16.05.2007, 08:47
Forum Legend
 
Join Date: Jun 2006
Location: Appenzell
Posts: 5,608
Groaned at 109 Times in 95 Posts
Thanked 2,220 Times in 1,324 Posts
DaveA has an excellent reputationDaveA has an excellent reputationDaveA has an excellent reputationDaveA has an excellent reputation
Re: Setting up business and getting loan!!!

Its not clear from your post how much planning you have done. Have you got a marketing or business plan ? If not , why not ? To put your house on the line is not something to do lightly, even if a bank will lend.

Planning is cheap if you do it yourself- and there is plenty of help out there - to have the rug pulled from under you at a later stage because you didnt have an appropriate trading or hygiene permit for food is not...

Bank will lend against collateral (usually a fraction of its value to ensure they are covered), but I wouldn't risk my house unless the risks were minimal, and there was no other way.

If you can raise a proportion of the capital yourself, you may be able to get an unsecured loan, which may be slightly more expensive, but is safer.

Talk to several banks, and go armed with your business plan and see what their reaction is. Talk to some chamber of commerce business advisors (Links can be found on the gruenden.ch website).

I may be telling you things you already know, but the wide range of figures you quote makes me wonder if your planning is as refined as it could be...

dave


Quote:
View Post
My husband and I are going to set up a mobile food business - we have our own house and probably need about 30-50K as a business loan. Just as a matter of intrest what would be the normal rates on a loan like this? 10 percent? Or less? Would you normally go to the bank where we have the mortgage or are there special places for these loans in switzerland.
Reply With Quote
  #15  
Old 20.11.2015, 09:27
grumpygrapefruit's Avatar
Forum Legend
 
Join Date: Feb 2007
Location: Mostly Zurich
Posts: 5,041
Groaned at 29 Times in 28 Posts
Thanked 12,315 Times in 3,164 Posts
grumpygrapefruit has a reputation beyond reputegrumpygrapefruit has a reputation beyond reputegrumpygrapefruit has a reputation beyond reputegrumpygrapefruit has a reputation beyond reputegrumpygrapefruit has a reputation beyond reputegrumpygrapefruit has a reputation beyond repute
Re: Setting up business and getting loan!!!

You joined the forum to answer a question from 8 years ago? Right...
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT +2. The time now is 16:39.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2016, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0