Absolutely worst response from a bank thus far

Discussion in 'General Discussion' 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 Member

    Apr 21, 2005
    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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