What collateral multiplier can one expect?

You and fifty thousand other folks. Lots of folks think they can do good restaurants, and many do. I'm not certain why some fail, but others succeed.

You may be be able to use the buildout as security, or, better yet, see if the lessor will put the cost of the buildout into the lease. I doubt they would be willing to put the kitchen into it, but it is likely that you could find a food court with an empty space, kitchen included, which you could lease without buying the kitchen (by far the largest cost of something like this). There are also restaurant supply houses that specialize in used kitchen equipment, not quite as cheap, but less costly than all-new.

They'll still ask you to co-sign. That mostly means that any assets you accumulate, other than the business, will also be available for them.

Good luck.

We Ngreat-grandchildren of Danish peasants have to stick together.

On average, what is the current multiplier for collateral on business loans?

1:1? 1:2? 1:10? 1:??? Let's say I have $80,000. How much of a start-up business bank loan would I normally expect to get for that? The desired form of that loan being a line of credit. And let's say I have a very solid business plan that has only gotten rave reviews from business people, that includes accountants. Would that increase the multiplier or not? How much does one's own personal credit rating affect it and in what ways? Anything else that can help or hurt? Also, who normally gives the best deals? Local banks, credit unions, bank chains, mega banks, overseas banks? The goal being to get as big of a multiplier, as friendly terms, and as low of an interest rate as possible to start a business with.

I've been told that, at least in some parts of the USA, the SBA accepts 30% collateral for their loans. Thus basically a 3 multiplier.

Scott Jensen

Start a new restaurant in a shopping mall foodcourt. Not as a franchisee.

I would only be able to lease the location.

That I would expect, but let's say my net worth isn't much beyond previously stated amount. The $80,000 is in tradeable stocks.

I'm not beholding to any part of the USA or even the USA. I'd move to where I could get a great deal and there's a great shopping mall to open the restaurant in. If it matters, my goal is to create a foodcourt restaurant chain.

By the way, nice last name. ;-) I even have a brother named David. :-) I checked out your website

just to be sure you weren't him. *laugh*

Scott Jensen