Home Plumbing Contractor Free Plumbing and Heating Contractor Business Plan 2.6 Loan Summary Analysis
Felix and Michael of Central Plumbing and Heating are looking to secure a term loan in the amount of $57,700 from a large lender with a local presence in Charlotte. Both Felix and Michael have excellent credit and also have a very solid payment history on past loans with this lender, and they expect that all this will be able to qualify them for the loan at a reasonably low interest rate of 6.75%. They are anticipating that the duration of the term loan will be 4 years and are projecting that the monthly payment of $1,375 will be relatively easy for them to manage as they get their business of the ground.
It is quite possible of course that the bank will only be able to approve part of the loan. Further it is also possible that the bank will only be able to offer them a rate that is much higher than 6.75%. Finally it is also possible that the bank only approves them for a 3 year term loan making the monthly payments on the loan closer to $2,000 per month instead of the $1,375 currently being projected.
Both Felix and Michael are fully prepared to add the additional $57,700 into the business by dipping into their own personal savings and adding $28,250 to the business themselves.
The Foundation Grant Directory is a free listing of sources for grants by state. Why not look if there is some free money out there for your business. Hey - you never know!
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