Obtaining Capital For Hookah Bar

[Kamran]

I feel like it is near impossible to get a loan for an establishment that specializes in tobacco. I am seeking out private investors, as in acquaintances and friends.

What did you or other hookah bar owners do to obtain capital, other than using your own cash?

[mitchard]

As with any business opportunity, dealing with acquaintances and friends in matters involving money lending isn't always the best idea.

I would love to see another bar open up in the Seattle area, but I think it would be a bad business move at this time. With two (and I head a thrid now?) bars open in the city, the market is a little flooded unfortunately.

But in any case, good luck with your plans.

[mushrat]

I used a massive personal credit card and a personal investor.

[Fumo1]

[quote name='Kamran' date='06 May 2010 - 03:09 AM' timestamp='1273129762' post='466921']
I feel like it is near impossible to get a loan for an establishment that specializes in tobacco. I am seeking out private investors, as in acquaintances and friends.

What did you or other hookah bar owners do to obtain capital, other than using your own cash?



[/quote]

Tough time to ask anyone for capitol. I did a low doc SBA loan about 15 years ago. I think they still have this program. I put 30% down on a $100K loan.
Basically they lent me 70k and I put in the other 30K. Paperwork took several weeks and was a pain in the ass but not as bad as a regular SBA loan. My
only word of advice is don't use anything important as collateral for the loan. I used my home and had a scare when business dropped for awhile. I had
visions of repo men coming to get my home. BTW you need good credit and the ability to detail out how your business is going to work and cash flow.
Banks like SBA loans because it protects them in the event of a default. Pain in the ass but it is an option. They like you to jump through hoops.......

[delSol_si]

you can either finance it with debt or equity, whichever seems to be the best/cheapest option for you

[TexasHookah]

Not to discourage you. Not only is it hard to get a loan for small business right now, but nearly impossible to find a bank that will give out a loan for a tobacco related business right now. It was hard enough to find a credit card merchant that would accept credit cards for us when we first started. Had to start everything from cash and personal credit cards. If you use credit cards make sure to pay off as soon as possible! Good luck!!!

[Karot]

[quote name='mitchard' date='06 May 2010 - 02:26 AM' timestamp='1273137982' post='466928']
As with any business opportunity, dealing with acquaintances and friends in matters involving money lending isn't always the best idea.

I would love to see another bar open up in the Seattle area, but I think it would be a bad business move at this time. With two (and I head a thrid now?) bars open in the city, the market is a little flooded unfortunately.

But in any case, good luck with your plans.
[/quote]


You're correct, a third bar just opened up in the capitol hill area next to Seattle U. It's called the cobra lounge but I have yet to visit there. Apparently they have "bob marley" bowls that contain kava kava and some other stuff to help relax you.

[mitchard]

[quote name='Karot' date='07 May 2010 - 10:28 AM' timestamp='1273253313' post='467134']
[quote name='mitchard' date='06 May 2010 - 02:26 AM' timestamp='1273137982' post='466928']
As with any business opportunity, dealing with acquaintances and friends in matters involving money lending isn't always the best idea.

I would love to see another bar open up in the Seattle area, but I think it would be a bad business move at this time. With two (and I head a thrid now?) bars open in the city, the market is a little flooded unfortunately.

But in any case, good luck with your plans.
[/quote]


You're correct, a third bar just opened up in the capitol hill area next to Seattle U. It's called the cobra lounge but I have yet to visit there. Apparently they have "bob marley" bowls that contain kava kava and some other stuff to help relax you.
[/quote]

Ah, same people that own the Cobra Lounge in Bellingham I assume. I've never been there, so I haven't tried any of their special mixes. My brother told me about them awhile back.

[Kamran]

[quote name='mitchard' date='07 May 2010 - 12:50 PM' timestamp='1273261839' post='467147']
[quote name='Karot' date='07 May 2010 - 10:28 AM' timestamp='1273253313' post='467134']
[quote name='mitchard' date='06 May 2010 - 02:26 AM' timestamp='1273137982' post='466928']
As with any business opportunity, dealing with acquaintances and friends in matters involving money lending isn't always the best idea.

I would love to see another bar open up in the Seattle area, but I think it would be a bad business move at this time. With two (and I head a thrid now?) bars open in the city, the market is a little flooded unfortunately.

But in any case, good luck with your plans.
[/quote]


You're correct, a third bar just opened up in the capitol hill area next to Seattle U. It's called the cobra lounge but I have yet to visit there. Apparently they have "bob marley" bowls that contain kava kava and some other stuff to help relax you.
[/quote]

Ah, same people that own the Cobra Lounge in Bellingham I assume. I've never been there, so I haven't tried any of their special mixes. My brother told me about them awhile back.
[/quote]

I really appreciate the informative replies.

Anyways, I know about the Cobra Lounge. I actually went to school in Bellingham and visited their home location a couple times. It wasn't my style, HOWEVER it was quite suitable for the town.

I am looking to something thats a little more 'authentic' and international per se.