i have $40,000 and i want to buy a $100,000 business.

can i get bank financing if i got a zero credit score. i live in hawaii and would like to buy a fast food restaurant. maybe subway??

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Answers (6)
No User Photo Jason Miller
Small Business Underwriters Founder

You won't be able to get financing with bad credit, unless there is some extraordinary circumstance like a major medical illness. The best way to find a business opportunity is to look at your own likes and strengths. In todays market, there are lots of opportunties to buy used equipment from busineses that have gone under. The asset sales page on bizbuysell are a good place to start.

Aug 1, 2009

If you are wanting to start your own business and open to other ideas, why not tuck away your $40,000 and start a business where you need very little capital. My mother had a restaurant for years and I know the hours are long in that type of business. In the end, what do you really have? Unlike the fast food industry you can set your own hours and then you can use your $40,000 to enjoy in other ways.

Jul 30, 2009

With zero credit score no banks will lend to you unless you have an well funded,established banking accounts or huge amount of collateral.You also might want to start working on a relationship with the banking manager. Your best bet would be to go with a independent fast food restaurant with owner financing and build up your credit. Later your can buy a franchise like subway. Or you can can try to buy a subway franchise and maybe some private lenders,angel investors,etc might fund the rest.

Jul 29, 2009
No User Photo Joe Gamatoria
Gamatoria Biz Brokerage & Consulting
Harford County, MD

The answer is 99.9% no chance of bank financing, only an act of god will change that. As far as a Subway or franchise simular, you don't qualify unless you are personally worth a large amount of money. The chain decides who gets to buy, not just the owner. They want you to have BIG money, so unless your wealthy you should ne looking for a local business that has owner financing. Be prepared to work a lot for a little. Also, some chains will limit your opportunities in HI. I am in Maryland, if you ever decide you want to move here and have restaurant experience, I may be able to find you a place if your willing to work open to close almost everyday for a year.

Jul 17, 2009

Hi, If you purchase a franchise, they usually want you have a surplus of cash available in addition to your down payment. I'm afraid that if you have a zero credit score, the only financing you might get is owner financing.

If you decide not to get a franchise, please keep me in mind as I do have three different website businesses available in different price ranges that do offer owner financing. A domain reselling business offering hosting and other services through godaddy, with a stable of "premium" domains and website included, a 10 year old known dating service selling it's website, domains, adv etc. as an asset business, and an ebay website selling unique, antique movie memorabillia selling as an asset sale. They are all relocatable to anywhere. You can reach me at "globalnerd@yahoo.com". Need to sign an NDA form for information.

Best of luck to you in whichever business you decide to purchase.

Jul 16, 2009
Carl Pallini Elite Carl Pallini
Tri State Franchise Authority
Pike County, PA

With a zero credit rating it might be difficult.I would suggest seeking finnacing through Subway or an existing fast food owner and ask them to hold a note from you.
Carl pallini

Jul 16, 2009