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Old 13.04.2016, 14:13
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Small business startup loan?

Hello,

My working contract with Swiss client recently ended and while looking for a new job I have come up with a good business idea and already begun working on it to bring it to fruition.

To get going, I could really do with investing in a reasonable volume of stock rather than offering a cold start with drop-ship from suppliers. I can go the cold-start route but think my business would be much more successful if I was able to offer quicker shipping times and a good show of local stock.

My base capital is a bit too low to do this, so I am wondering about the possibility of a small business loan.

I have a decent business plan, market knowledge and experience.

I also have a Porsche Boxster S with a value in the region of 35,000CHF.

I am looking for a loan in the region of 10,000-20,000 ideally and would be happy to offer my vehicle as collateral as I have a lot of faith in the potential success for this business given finding a gap in the market where demand is exceeding supply. I'd rather not go into the specifics of the business publicly on this forum at this time.

Is anyone familiar with a loan company in Switzerland that might consider such a proposal?

I have just sent a message to my bank, UBS and am currently using Google to search for alternatives.

No worries if not but I think it is worth asking you knowledgeable guys

Thank you
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Old 13.04.2016, 14:31
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Re: Small business startup loan?

This Beobachter article lists three micro-credit financing organizations in Switzerland:

http://www.beobachter.ch/kmu/kmu-art...rosse-wirkung/

From a quick read, it appears that the most viable one for a resident of Basel-Land is:

http://www.microcredit-solidaire.ch/?lang=de
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Old 13.04.2016, 14:34
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Re: Small business startup loan?

Also ZKB is giving convertible loans, specifically for startups, so you could have some luck there.
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Old 13.04.2016, 14:37
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Re: Small business startup loan?

TBH, for a small loan like that I would take out a personal loan for whatever ... new furniture, holiday, a car etc and put that money into the business. Borrowing from a bank for a brand new business is always tricky, they usually want to see how much you are putting in (a lot more than them) and they know the risk is high.
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Old 13.04.2016, 14:40
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Re: Small business startup loan?

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TBH, for a small loan like that I would take out a personal loan for whatever ... new furniture, holiday, a car etc and put that money into the business. Borrowing from a bank for a brand new business is always tricky, they usually want to see how much you are putting in (a lot more than them) and they know the risk is high.
Not sure how easy that is in Switzerland without a job, but it would be a better option if it is an option.
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Old 13.04.2016, 14:50
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Re: Small business startup loan?

Wow! Thank you for the quick replies guys - most appreciated!

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This Beobachter article lists three micro-credit financing organizations in Switzerland:

http://www.beobachter.ch/kmu/kmu-art...rosse-wirkung/

From a quick read, it appears that the most viable one for a resident of Basel-Land is:

http://www.microcredit-solidaire.ch/?lang=de
Great, I will take a good look at that.

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Also ZKB is giving convertible loans, specifically for startups, so you could have some luck there.
Awesome - will take a look at that too

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TBH, for a small loan like that I would take out a personal loan for whatever ... new furniture, holiday, a car etc and put that money into the business. Borrowing from a bank for a brand new business is always tricky, they usually want to see how much you are putting in (a lot more than them) and they know the risk is high.
Sure thing, I thought the risk rate might be a factor.

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Not sure how easy that is in Switzerland without a job, but it would be a better option if it is an option.
My thoughts too, hence looking for somewhere that might consider my vehicle as collateral.

Worst case scenario, I have already been working hard on getting the back end of the business setup... you might be surprised at quite how long it takes to setup all the products on a new site, let alone other bits and bobs so this little break in my 100% employment is being well utilised

I doubt I will be out of employment for long as I have a good skillset and strong profile for a rather active sector of the IT market with some popular specialisations... so worst case I can see is that I get the main bits of the business set up and can run it in the background while I start a new role buying stock from salary payment and when my wife's contract runs out - she can take over management of the business.

I also have a friend currently out of work on disability allowances who has many years experience running a business and managing a government department - so an extra fall back if we need it.

I've already built a good few supplier relationships too - so it will get going, I'd just prefer it to be sooner than later
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Old 13.04.2016, 15:15
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Re: Small business startup loan?

Why not just sell the expensive car?
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Old 13.04.2016, 15:15
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Re: Small business startup loan?

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I also have a Porsche Boxster S with a value in the region of 35,000CHF.

I am looking for a loan in the region of 10,000-20,000 ideally and would be happy to offer my vehicle as collateral as I have a lot of faith in the potential success for this business given finding a gap in the market where demand is exceeding supply.

YOU DO NOT NEED A LOAN!!!:

Step 1: Sell your boxster for 35k.

Step 2: Buy a car for 15K.

Step 3: Use the 20k to make your business a success.

Step 4: Buy a 911.


cheers
SC
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Old 13.04.2016, 16:22
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Re: Small business startup loan?

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Why not just sell the expensive car?
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YOU DO NOT NEED A LOAN!!!:

Step 1: Sell your boxster for 35k.

Step 2: Buy a car for 15K.

Step 3: Use the 20k to make your business a success.

Step 4: Buy a 911.


cheers
SC
It has crossed my mind, however I would prefer not to - so I am looking into other options first.

I have in the region of 20-30k CHF due to me over the coming 3-6 months from 2 different sources, a 10k CHF rebate from a health insurance company (overpaid dues, not a health issue reimbursement and a commission payment from my previous employer). I don't have an exact pay date for that though and so am exploring options available to me to get moving with this business ASAP.

I have a meeting scheduled for Thursday morning to bring one of those pay dates forward and am considering offering a discount to speed up payment.

I would rather take the % hit from a loan to speed things up instead of waiting and I would rather wait than sell the vehicle.

Perhaps showing the proof of these payments being due might also assist in a loan application?
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Old 13.04.2016, 16:30
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Re: Small business startup loan?

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Step 1: Sell your boxster for 2/3 of 35k.
fixed that for you
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Old 13.04.2016, 16:41
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Re: Small business startup loan?

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Hello,

My working contract with Swiss client recently ended and while looking for a new job I have come up with a good business idea and already begun working on it to bring it to fruition.

To get going, I could really do with investing in a reasonable volume of stock rather than offering a cold start with drop-ship from suppliers. I can go the cold-start route but think my business would be much more successful if I was able to offer quicker shipping times and a good show of local stock.

My base capital is a bit too low to do this, so I am wondering about the possibility of a small business loan.

I have a decent business plan, market knowledge and experience.

I also have a Porsche Boxster S with a value in the region of 35,000CHF.

I am looking for a loan in the region of 10,000-20,000 ideally and would be happy to offer my vehicle as collateral as I have a lot of faith in the potential success for this business given finding a gap in the market where demand is exceeding supply. I'd rather not go into the specifics of the business publicly on this forum at this time.

Is anyone familiar with a loan company in Switzerland that might consider such a proposal?

I have just sent a message to my bank, UBS and am currently using Google to search for alternatives.

No worries if not but I think it is worth asking you knowledgeable guys

Thank you
Forgive me I'm wrong, but any reputable finance institution here will not accept your car as collateral for a loan. I believe that mortgages etc. are more eligible. For such a loan, you should be able to find the funding though a reputable institution with minimal paperwork, and no collateral obligation - many out there, if you have a passable credit rating e.g. credit-now / cembra / migros etc.

All applications can be made on-line. Be aware that if you already have a bad credit rating, each application might go against you and be registered. I think it comes under the Swiss consumer law to avoid that you get into debt. over your manageable liabilities. Not sure about the term - let me know if you need more info.

Last edited by ZuriRollt; 13.04.2016 at 16:57.
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Old 13.04.2016, 16:50
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Re: Small business startup loan?

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Forgive me I'm wrong, but any reputable finance institution here will not accept your car as collateral for a loan. I believe that mortgages etc. are more eligible. For such a loan, you should be able to find the funding though a reputable institution with minimal paperwork, and no collateral obligation - many out there, if you have a passable credit rating e.g. credit-now / cembra / migros etc.
You may very well be correct with that, I know in the UK that the ones who will accept a vehicle as collateral are the last loan companies you ever want to deal with... but asking about it doesn't hurt
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Old 13.04.2016, 17:13
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Re: Small business startup loan?

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You may very well be correct with that, I know in the UK that the ones who will accept a vehicle as collateral are the last loan companies you ever want to deal with... but asking about it doesn't hurt
Yes, I see that you are trying to do your best to put everything into motion - great !
If you want to set-up something here in CH though you have to go the "normal" way, or suffer the consequences later.

We've no background to your nationality i.e. rights to operate here in Switzerland, so it's pretty impossible to help you formulate your business case nor suggest funding proposals.

Good luck though - sincerely wish you all the best in your new venture.
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Old 13.04.2016, 17:31
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Re: Small business startup loan?

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I have a meeting scheduled for Thursday morning to bring one of those pay dates forward and am considering offering a discount to speed up payment.
To be honest, I doubt it, might depend on the institution.
Of course make sure that you have everything concerning immediate income documented, as well as your commitment to fulfil outstanding obligations.
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Old 13.04.2016, 19:03
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Re: Small business startup loan?

I have $1million sitting in the bank waiting for Fatmanfilms to invest it for me. I could lend you 35k but I won't, you know why? If I lend it to you, you would be basically risking and playing with my money when you are not willing to put your own money where your mouth is. To be more precise you are not willing to put your Porsche Boxster S where your mouth is

If you are so confident about your business plan then you could buy 2 Porsche Boxsters in the future
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Old 13.04.2016, 19:56
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Re: Small business startup loan?

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I have $1million sitting in the bank waiting for Fatmanfilms to invest it for me. I could lend you 35k but I won't, you know why? If I lend it to you, you would be basically risking and playing with my money when you are not willing to put your own money where your mouth is. To be more precise you are not willing to put your Porsche Boxster S where your mouth is

If you are so confident about your business plan then you could buy 2 Porsche Boxsters in the future
Not quite... I think you will note from my original post that I have been looking for somewhere that might accept the car as collateral on a loan of half its value, risking the entire vehicle and its value.

The option suggested a few posts back might seem to be lower risk on the surface. But then a 15k car could easily be a lemon and a money pit. With my car I will have no large bills for another 19 months.

I have also recently invested 7000CHF in the car which I wouldn't see back, although a part of that was a 2 year extended warranty which might help it sell quicker.

On top of that I spent a while searching for a very specific model specification which is quite rare and would be difficult to find again. It's low mileage and in exceptional condition.

So my consideration to offer the vehicle as collateral speaks volumes about my confidence in the business plan.
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Old 14.04.2016, 14:48
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Re: Small business startup loan?

Sorry I find it really weird that someone who does not have a spare 10-20k drives a Porsche Boxster S. Well you obviously have your priorities right
Yes do groan again.
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Old 14.04.2016, 15:05
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Re: Small business startup loan?

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Not quite... I think you will note from my original post that I have been looking for somewhere that might accept the car as collateral on a loan of half its value, risking the entire vehicle and its value.

Changes that a solid reliable lender will take the car as collateral for 50% of its worth are very low. Unless the banking world has changed since I left but I assume that collaterals only have become more important than years ago
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Old 14.04.2016, 15:16
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Re: Small business startup loan?

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Sorry I find it really weird that someone who does not have a spare 10-20k drives a Porsche Boxster S. Well you obviously have your priorities right
Yes do groan again.
no groan for that one

Fair point, if I manage to be out of work for too long or the business takes a while to get going, I may end up having to sell it... But I'm holding on to it as long as I can

We are getting by on my wife's salary, but as she is an intern - we don't have much spare to put to the side at the moment.

I'm making enquiries with the micro loans companies
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Old 14.04.2016, 15:29
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Re: Small business startup loan?

I'm in favour of you selling the Porsche and use that money.


Please do put up an ad here (including pictures) and the EF appraisers here will tell you exactly what it is worth.
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