Loan for a start-up company.

[PetAnd]

Is it possible for a start-up company to get a loan for investment in DR.
For example. if the company needs 100,000 USD to start up a production and needs to borrow 50,000 of this. 50% is invested by the owner.
How do you proceed, which documents are needed and which bank is best for companies?
Does the owner need a residence and work permit to get a loan?, or does it only apply if he works for the company himself.
I have a European company that wants to start a small production in the DR.
I have applied for a residence and work permit but it is still being processed.

 

[SKY]

No collateral, no loan..............

 

[PetAnd]

No collateral, no loan..............

It was therefor I wrote that the owner invest 50% of the required money too.
The loan goes to buy machines and you can use them as a part of security.

 

[Manuel01]

If you need a Loan of 50k you need Collateral of 75k at least and this needs to be something that the Bank can sale within a few days not some weird machines.
Also prepare for 18% interest.

 

[FF1]

If you're 50k short you're better off trying to get the loan in your home country. You probably own some real estate back home, put it up as the collateral and get the money. Also you won't be charged the loan-shark interest rates they charge in RD.

 

[johne]

It was therefor I wrote that the owner invest 50% of the required money too.
The loan goes to buy machines and you can use them as a part of security.

His machinery for collateral....similar to take my wife. Huh, she is ugly as dirt. lol

 

[PetAnd]

His machinery for collateral....similar to take my wife. Huh, she is ugly as dirt. lol

I already have machines in the head company that is valued by the the insurance company to 14 million peso. As excavators, loaders and other machines for construction. Now I start an affiliated company and need some different machines.

 

[SKY]

I already have machines in the head company that is valued by the the insurance company to 14 million peso. As excavators, loaders and other machines for construction. Now I start an affiliated company and need some different machines.

You asked us for advice. Now you have it. You have to get the loan from a bank. Not complaining here against solid advice from people living here for decades.................Good luck, you will need it.........

 

[PetAnd]

You asked us for advice. Now you have it. You have to get the loan from a bank. Not complaining here against solid advice from people living here for decades.................Good luck, you will need it.........

Sorry that I only lived here for 4 years and have a company for 1 year with no loan.
Now I start another company and ask for advice. My bank is not willing to lend money to a new company even then I have my other company there. They said that my old business has to be at least 5 years old with good profit.

 

[FF1]

...

 

[PetAnd]

I already have machines in the head company that is valued by the the insurance company to 14 million peso. As excavators, loaders and other machines for construction. Now I start an affiliated company and need some different machines.

Clarification. I have the machines registered with my Dominican company and they are not mortgaged.

 

[FF1]

Sorry that I only lived here for 4 years and have a company for 1 year with no loan.
Now I start another company and ask for advice. My bank is not willing to lend money to a new company even then I have my other company there. They said that my old business has to be at least 5 years old with good profit.

You're kinda confusing. If you lived in DR 4 years and own a business in DR by now you should've had a basic idea about bank loans. Also when you say "My bank is not willing to lend money to a new company even then I have my other company there. They said that my old business has to be at least 5 years old with good profit." are you talking about your bank in DR or back home?

 

[PetAnd]

So why are you asking the question here when you already got the answer from your bank?

I asking others if they have experience from other banks. I can't believe I'll be the only expat with a company who been taking a loan.
It is so many differences here, I had to go to 3 different banks just for opened an account for a new company for a year ago. Just because I didn't have residence. Maybe a little because I'm not an american too, I'm from northern Europe.

 

[PetAnd]

You're kinda confusing. If you lived in DR 4 years and own a business in DR by now you should've had a basic idea about bank loans. Also when you say "My bank is not willing to lend money to a new company even then I have my other company there. They said that my old business has to be at least 5 years old with good profit." are you talking about your bank in DR or back home?

I talk about the bank in DR. I never take a loan or credit here so I didn't study the rules.
I got my DR company for about 1 year with good profit, never needed a credit, never been late with a payment.
Almost all money I earned I invested in the company. Buy new machines, land etc.

 

[FF1]

Maybe a little because I'm not an american too, I'm from northern Europe.

If you were an American it'd be even harder to open the account, the IRS is on DR's ass about Americans hiding money and not paying taxes lol.

 

[PetAnd]

If you were an American it'd be even harder to open the account, the IRS is on DR's ass about Americans hiding money and not paying taxes lol.

The swdish banks too. I even can't transfer money from my swedish bank account to my own bank account in DR, need to go though a spanish bank. The IRS in sweden is a pain in the ass too.

 

[Kricke87]

The swdish banks too. I even can't transfer money from my swedish bank account to my own bank account in DR, need to go though a spanish bank. The IRS in sweden is a pain in the ass too.

Use Wise, they have a small transfer fee.

 

[johne]

Perhaps your machinery/collateral in "another" company is 100% protected and judgement free, si??





So, pray tell, where is the collateral for the loan FOR THE "NEW COMPANY"??

 

[Drperson]

Lack of business financing here really is a drag on the economy

 

[windeguy]

I asking others if they have experience from other banks. I can't believe I'll be the only expat with a company who been taking a loan.
It is so many differences here, I had to go to 3 different banks just for opened an account for a new company for a year ago. Just because I didn't have residence. Maybe a little because I'm not an american too, I'm from northern Europe.

You might well be.

Most people are smart enough to realize this is a place to retire to and not try to run businesses, deal with incredibly high loan rates, etc.