Getting a loan in the bank

investment website

Initially, I only have a little experience investing, but I have a great interest and about two years ago I started investing “all of my” savings, and I actually think that this is something I could be really good at.

So I started reading books and I actually got a satisfying return on my own money.

But the possibility to get rich from my own savings was slim-to-none unless I lived like a Monk for the next 10 years and invested more than 50% of my income.

How could I make enough money to retire early, without living like a monk for the next decade(s)?

I need more money to start my investments and a steady income source to continuously grow my portfolio.

Getting a loan versus own saved money

In this situation I had two opportunities, I could wait a long time until my savings was increased to a point where I felt, I had enough money to start investing.

Or I could borrow the money in a bank.

I chose to borrow money from the bank because I have been a student my whole life.

Therefore, I haven’t been able to save the money I would like.

After finishing my education I started working as a marketing consultant, now I could start saving money.

But it would take far too long to save the amount of money I would like to start with.

Because I now have a job, banks would now consider lending money to me, that meant I could start investing and share my journey and the experience I get, right away instead of waiting for a couple of years.

Why investing in stocks is my dream

I have always been into numbers and games. In my perspective, you can see stock trading, like a game because it is about beating the market (all the other players).

So when I found out that you can play a game with numbers and earn money even earn very good money at the same time I was excited and started to read all about the stock market, so I could start the game (investing).

You can find all the books I have read, that is related to investing here.

A thing more, what I really like about being in the game is that you learn a lot about the whole world.

It isn’t necessary to read a lot of news to beat the market, especially if you are investing for long.

But I still think it is a very good idea to read all the news you can get to.

That will give you a knowledge of new technologies, new companies and political changes that could have an effect on your stock portfolio or the whole stock market.

Another aspect in the stock market I really like is that you never stop learning.

You keep learning about yourself and also the rest of the world.

How I got a loan in the bank with no credit

Because of my decision of lending money instead of waiting for my savings to grow, I needed to talk with a bank.

get a loan

Therefore, I contacted the bank for the first time in my entire life.

The first contact was over the phone and referred to which information the bank needed to lend me money.

After the first conversation with my banker, I saw that he had misunderstood me because he thought that I asked for a business loan.

So he needed to talk with a banker with business advisor thesis.

Therefore, he asked for an annual report of the company that I had or would own, but my case was that I would start a new company and therefore needed a private loan to start the new company.

After the bank had found out what type of loan I should have, they emailed me which information they needed to give me a private loan.

The information the bank needed from me was:

  • Three months of pay slips (private)
  • An annual statement for last year (private)
  • Budgets for the new company, including how much yield I could get from the new company
    problems with lending money (Business)

Normally in Denmark, the banks need to see minimum three months of pay slips before considering lending money.

Because I just started working I couldn’t show the banks three months of pay slips, but only for one month.

That was a bad thing for me because the bank though it was a little insecure to lend money just after one month.

Also, my annual statement was misleading because I had been a student with only a little work.

Because I didn’t work that much in the past year and my total income in the annual report was very low.

After I got my new job I would earn four to five times more than last year.

The last point was also a problem because I had not developed any budget because you can’t really be sure of a fixed return from stocks.

Because of the problems mentioned above the bank thought it was too risky to lend me money.

The conversation with bank number two

Therefore, I contacted another bank. The first time I called the new bank, I got redirected between several workers and departments.

When the bank finally found out who I should talk to there was a little problem because he was on vacations.

When I looked up the person I should have a talk with, I realised that the bank had again misunderstood me and thought I needed a business loan instead of the private loan I really needed.

After I found out that the bank had misunderstood me, I called the bank again.

I explained to them that I thought they had misunderstood me because it was a private loan what I needed and not a business loan.

In that call, they understood my needs and the lady on the phone, booked a meeting with one of her colleagues I could talk with on the following week and send me an email with the information I needed to take with me at the meeting.

The information I should bring for the meeting:

  • Three months of pay slips (private)
  • An annual statement for last year (private)
  • Budgets for fixed costs (private)
  • Overview of loans in other banks (private)
  • A pension report from pensionsinfo.dk (private)
  • Budgets, strategy and purpose of the new company (business)

Short after the phone call I got an email that told me who, where and when I should do the meeting.

I had some time to prepare for the meeting because it was three days after the phone call.

I needed to create a budget for fixed costs and get an overview of loans and instalments for other banks.

And at last, I needed to prepare a paper that explained the strategy and purpose of the new company I would start.

The meeting with the bank was about one hour and referred to the points listed above.

Most of the time was spent on the budget I had made for fixed costs.

When we had gone through all the points the banker repealed the meeting and said that he would contact me within a week with the result.

When the week had gone, the banker contacted me with the result. It was, unfortunately, a no. The reason was the same as the first bank, that they thought it would be too risky to lend me money.

The reason was the same as the first bank, that they thought it would be too risky to lend me money.

Because I couldn’t borrow the money in the bank, I needed to wait a little longer and use my savings.

How I got my bosses to invest in my idea

My dream has always been and still is that I can live off investing money in primary stocks.

My boss and I are both interested in investment and especially stocks. We have talked about stocks almost from day one at work.

After a few weeks, I started investing from my savings even though they were not that big.

We started talking about how I did on the stock markets and I did very well.

After my bosses saw how well I did on the markets, he asked if we should make an investing company, so we had more capital to start.

When I heard that idea, I was ready to start.

We thought it would be nice to blog about our adventure on the stock market and be very transparent about how it goes.

In that way, we will write about every though we have about stocks, and show everything we do on the stock market.

What I considered before loaning money

My first worries were that it could be very expensive to borrow the money.

The main reason that it could be a very expensive experience is that if I borrowed the money from the bank.

I could loose it all in my investments.

In the worst case, I would stand with stocks worth almost zero and a loan in the bank that would get bigger and bigger because of the interest rate.

In the worse scenario, I will have a problem, but I will not be totally screwed because I have the security of my job as a marketing consultant.

That is one of the very big reasons that I would borrow money from the bank for investing.

But as explained in the section “How I got a loan in the bank with no credit”.

I couldn’t borrow the money and all my considerations didn’t matter.

Why I created a company for investing

The first reason is that I find investing very interesting, especially investing in the stock market.

So when you have the chance of living on what you find very very interesting, it is to strike.

You can ask, why didn’t you just invest as a private person?

That is a very good question, but there are, a very good answer as well.

I had not enough money to really get a proper return on my investments and I hope to get a second source of income with this company.

Reactions from family and friends

The general attitude in Denmark is that you only loan money on a house/apartment and maybe a car.

And of course, some of my family members and friends also thought, it was risky and kind of stupid to loan money to invest in stocks etc.

But to my big surprise, most of my family was positive and understood why I would take the loan and start the company compared to many of my friends that thought it was too risky and therefore a little stupid.

How I plan to grow my portfolio

 

As you can read on this site, I do not intend to sell any of my stocks ever.

I go for a super long-term strategy in which I need an income to be able to keep my portfolio growing.

I sincerely hope that I will be able to grow the audience of this website and make it a steady, but modest, income to further invest.

My first three-year goals for revenue from StockNick.com is as follow:

  • 2016: $2.000
  • 2017: $5.000
  • 2018: $10.000

Right now, I have no plans on how to monetize the site.

That is something I will have to worry about for when I actually have any traffic.

Income possibilities for StockNick.com

  • Advertising but I think it will be annoying to you, and I generally don’t want to add something to this site, that doesn’t add value.
  • Pay-gate, at some point I would think about adding a pay-gate, but I will see how other sites manage to this first.
  • Books / Ebooks, this is my favourite and probably the way I want the most.

 

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