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Absolutely worst response from a bank thus far

Discussion in 'Studio Lounge' started by BrianAltenhofel, Apr 27, 2005.

  1. Okay, I have to admit I find it kinda funny looking back, but it really hacked me off when they first said it:

    "Why don't you just go buy a good computer and put ProTools on it?"

    In case you can't tell, I was trying to get a loan to start my own studio in this area. Sure, I'm 19 and was asking for $500,000 (most of which would've been construction), but what I had going for me was running three successful businesses and customer accolades from shows and demos I had done. Honestly, I consider $500,000 to be a small amount for starting a business from the ground up, especially a studio.

    I just want to know from others who have experienced this type of stuff, "What was your worst response from a bank regarding building a studio?"
  2. LittleDogAudio

    LittleDogAudio Active Member

    Sep 24, 2004
    One of my oldest and dearest friends/clients, is a vice-president of a very large bank. He is the richest and smartest man that I personally know. He has been recording with me for about 20 years and if I told him that I was going to approach a bank for 1/2 million dollar loan to open a recording studio, he would kick me in the teeth.

    And I would thank him for it.

    If you're NOT really interested in making a profit from this venture, then go for it!


    If this is like most businesses that need to see a revenue flow rather quickly, I'd reconsider this move.

    btw, I've owned 4 studios over 22 years, so I know a thing or two about the changing economics of the biz.

  3. The odd thing is, they were willing to give me $750,000 to start webhosting WITHOUT a business plan when I was 14 and my co-signer was actually "high risk". Sure, I had it paid off in 3 months, but I asked for a 15-year loan because that's what I thought it would take to start making a profit. Basically, what I am saying is "why the hell will they give me money for a shot in the dark but not something that has been planned out to the dime?"
  4. LittleDogAudio

    LittleDogAudio Active Member

    Sep 24, 2004
    I think I'm being suckered here.

  5. Costy

    Costy Guest

    It's quite possible, Chris...
    Brian, five years ago it was era of e-commerce boom. Then
    whole bunch of .coms came down, then post 9/11 stock crash.
    The banks are smarter now, that's all. Particulartly in the states
    like OK, where bankruptcy laws are as good as it gets.
    I know a person who has an awsome new studio, about 5 mils
    worth. He is a well-known engineer and producer. Having his
    name established, he rounded up a few partners/investors and
    created a joint venture with a board of directors. He is the
    presiden ecc. Way to go, in my opinion.
    But you can do whatever you want, of course.
  6. jonnyc

    jonnyc Guest

    If you find a planet that'll give a 19 year old a 500,000 for a music studio let me and the other million of us know, i thought it was crazy when they gave me 20,000 to start one in my home.
  7. dendanna

    dendanna Guest

    I know the feeling, when I was 5 I tried to get a $300,000 loan to start my own toy store and they refused just like that

  8. RAIN0707

    RAIN0707 Guest

    It's not relatively hard to get a loan. It's all a matter of minimizing risk. Show the bank you can make good on a small loan first and they are more than likely going to give you the bigger one down the line. Ask for 10,000. Pay it back within 6 monthes. A few monthes later ask for 25,000. Pay it back within 6 monthes. Next time ask for 100,000. Odds are you get it. It's really pretty simple.
  9. flexo

    flexo Guest

    A ha ha ha ha ha haaa...
    Why don't you save up $500K ?

    Probably more likely then the bank giving it to you.... :lol:

    excuse me..

    A ha ha ha ha ha haaa...

    A ha ha ha ha ha haaa...
    A ha ha ha ha ha haaa...

    A ha ha ha ha ha haaa... :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:

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