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  • FIRST POST
    • brightfuture23
    • By brightfuture23 11th Jan 17, 12:45 PM
    • 2Posts
    • 0Thanks
    brightfuture23
    Business start up loan & Debt clear help please.
    • #1
    • 11th Jan 17, 12:45 PM
    Business start up loan & Debt clear help please. 11th Jan 17 at 12:45 PM
    Hey guys,

    I'm looking to start a business that I think will become very successful in a short space of time. A lifestyle brand, connected to a foundation of goodness. My problem is that I have struggled over the years and got myself into debt. I have a few defaults on my credit history, in total I owe around £6,000 and I'm hoping to clear them and set up my new business with a loan of between £25,000 and £100,000. I have full confidence in my business idea and I'm basically ready to go, but I'm struggling to find a lender because of my obvious bad credit history. Can anyone advise me, as to what to do and where to go? I am destined to become successful, but I'm wallowing at the moment. Thanks BF
Page 1
    • zx81
    • By zx81 11th Jan 17, 12:51 PM
    • 14,384 Posts
    • 15,172 Thanks
    zx81
    • #2
    • 11th Jan 17, 12:51 PM
    • #2
    • 11th Jan 17, 12:51 PM
    You're not going to get a business loan without the lender wanting you to put in a big chunk yourself, as part of your business plan.

    So you need to clear the existing debt, save, then look again at starting the business. Consider what you can do to start the business in the meantime.
    • spadoosh
    • By spadoosh 11th Jan 17, 1:01 PM
    • 4,673 Posts
    • 6,126 Thanks
    spadoosh
    • #3
    • 11th Jan 17, 1:01 PM
    • #3
    • 11th Jan 17, 1:01 PM
    https://www.gov.uk/start-up-loans

    Dont know your circumstances. But a start up loan for £100k (even the £25k) is unlikely, unless you can provide substantial funding for the business yourself.

    What are your current circumstances and what is your business experience?
    Don't be angry!
    • Brock_and_Roll
    • By Brock_and_Roll 11th Jan 17, 1:02 PM
    • 774 Posts
    • 744 Thanks
    Brock_and_Roll
    • #4
    • 11th Jan 17, 1:02 PM
    • #4
    • 11th Jan 17, 1:02 PM
    I'm looking to start a business that I think will become very successful in a short space of time. A lifestyle brand, connected to a foundation of goodness.


    As a banker, I would already be pressing the hidden button under my desk to release the hounds!!


    Putting debt issues to one side, nobody young or old, experienced or inexperienced gets a bank loan with having "skin in the game".


    The bank wants to know that the borrower has an incentive make the business a success and not walk away when the going gets tough. Whether its a charge over the borrowers house, or evidence that he is putting in ££££, the bank wants to know that if that any pain will be shared!
    • Arleen
    • By Arleen 11th Jan 17, 1:15 PM
    • 1,031 Posts
    • 758 Thanks
    Arleen
    • #5
    • 11th Jan 17, 1:15 PM
    • #5
    • 11th Jan 17, 1:15 PM
    Start up loan is something you should look into (as given before: https://www.gov.uk/start-up-loans ). As long as you will work with your delivery partner and have a realistic business plan (which they will help you develop), you are very likely to be accepted, and they can go up to 25k. This will, of course, be a personal loan that must be repaid with interest.

    I do strongly to go that route, as the mentorship and help they provide will be invaluable to you, and from the read of your brief description, you sure need it. Because if there were an easy and fast way to turn high profits, with an input of only 25 to 100k, it would have been ridden to death already.

    Additionally, almost all businesses can be started with little money. So look over your business plan, assume that there is no way to get external funding and see how you can deliver a minimalistic version of your product. When you will do that, and the business actually works, then getting funding to scale it up becomes much easier.
    • brightfuture23
    • By brightfuture23 11th Jan 17, 1:32 PM
    • 2 Posts
    • 0 Thanks
    brightfuture23
    • #6
    • 11th Jan 17, 1:32 PM
    • #6
    • 11th Jan 17, 1:32 PM
    Thank you all for the advice, It is very much appreciated. I have struggled with Anxiety and Depression issues in the past, had a breakdown and things started to snowball. Things are much better these days, and I found balance a while back, I wouldn't even consider starting up otherwise. I have found a gap in the market, which my business will fit into nicely, there are currently similar formats doing very well, simply selling through social media, but my idea is better and should attract far more attention. I have no intentions if jumping ship, but I was thinking of the potential risk attached to me in the banks eyes, I think trying to find a start up, and starting off small is probably my best option then. I can start off small, I was hoping for an easier option so I could really make waves from the off, I guess if it were easy though, everyone would be doing it.
    • Gaz83
    • By Gaz83 11th Jan 17, 2:53 PM
    • 3,532 Posts
    • 6,737 Thanks
    Gaz83
    • #7
    • 11th Jan 17, 2:53 PM
    • #7
    • 11th Jan 17, 2:53 PM
    Thank you all for the advice, It is very much appreciated. I have struggled with Anxiety and Depression issues in the past, had a breakdown and things started to snowball. Things are much better these days, and I found balance a while back, I wouldn't even consider starting up otherwise. I have found a gap in the market, which my business will fit into nicely, there are currently similar formats doing very well, simply selling through social media, but my idea is better and should attract far more attention. I have no intentions if jumping ship, but I was thinking of the potential risk attached to me in the banks eyes, I think trying to find a start up, and starting off small is probably my best option then. I can start off small, I was hoping for an easier option so I could really make waves from the off, I guess if it were easy though, everyone would be doing it.
    Originally posted by brightfuture23
    Is it one of those daft Kleeneze / Herbalife / JuicePlus / NuSkin / etc. multi-level marketing scams - sorry, businesses - that are cropping up everywhere on FB these days?
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
    • Helvetica Van Buren
    • By Helvetica Van Buren 11th Jan 17, 3:18 PM
    • 244 Posts
    • 341 Thanks
    Helvetica Van Buren
    • #8
    • 11th Jan 17, 3:18 PM
    • #8
    • 11th Jan 17, 3:18 PM
    The best thing you can do is get a job and fund the business yourself, or else find in investor - there really isn't a quicker / easier way.

    Borrowing money to start a business is very difficult (though not impossible) but without a proven track record you really aren't going to get very far.
    • foxy-stoat
    • By foxy-stoat 11th Jan 17, 3:28 PM
    • 1,561 Posts
    • 862 Thanks
    foxy-stoat
    • #9
    • 11th Jan 17, 3:28 PM
    • #9
    • 11th Jan 17, 3:28 PM
    Try Dragons Den to sell your idea.
    • PeacefulWaters
    • By PeacefulWaters 11th Jan 17, 5:47 PM
    • 7,300 Posts
    • 9,043 Thanks
    PeacefulWaters
    Try Dragons Den to sell your idea.
    Originally posted by foxy-stoat
    "I'll lend you £50k for a 95% share of your business"
    • MEM62
    • By MEM62 12th Jan 17, 9:39 AM
    • 1,394 Posts
    • 1,009 Thanks
    MEM62
    A business loan and a personal loan are different products so you cannot combine consolidating your debt with financing your business. Under normal circumstances a business loan will require you to put up 50% of the investment amount. So, if you need for example £50K to get your business up and running you will have to find £25K to put into it and a bank might put up the other £25K if you have a solid business plan.

    With respect to your confidence that you will be successful, I am sure that you are. But you are not wanting to play with your own money and it is easy to be confident when someone else is taking the financial risk.

    You are unlikely to secure funding based on the circumstances outlined in your post.
    • DCFC79
    • By DCFC79 12th Jan 17, 10:44 AM
    • 30,403 Posts
    • 19,220 Thanks
    DCFC79
    Thank you all for the advice, It is very much appreciated. I have struggled with Anxiety and Depression issues in the past, had a breakdown and things started to snowball. Things are much better these days, and I found balance a while back, I wouldn't even consider starting up otherwise. I have found a gap in the market, which my business will fit into nicely, there are currently similar formats doing very well, simply selling through social media, but my idea is better and should attract far more attention. I have no intentions if jumping ship, but I was thinking of the potential risk attached to me in the banks eyes, I think trying to find a start up, and starting off small is probably my best option then. I can start off small, I was hoping for an easier option so I could really make waves from the off, I guess if it were easy though, everyone would be doing it.
    Originally posted by brightfuture23
    Whats the money exactly for ?

    Buy a domain and get a website built to sell.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Gambler101
    • By Gambler101 12th Jan 17, 12:04 PM
    • 528 Posts
    • 1,292 Thanks
    Gambler101
    Hate to say it but A, you need to put up 30-50% of any business funding from your savings or security on your home, and B you seem wildly over optimistic to the point of not being credible.
    The instructions on the box said 'Requires Windows 7 or better'. So I installed LINUX
    • motorguy
    • By motorguy 12th Jan 17, 12:34 PM
    • 15,814 Posts
    • 9,097 Thanks
    motorguy
    Hey guys,

    I'm looking to start a business that I think will become very successful in a short space of time. A lifestyle brand, connected to a foundation of goodness.
    Originally posted by brightfuture23
    There are key phrases there that make me jumpy -

    "very successful in a short space of time" - thats very unlikely. Unless you truly have discovered a goose that lays golden eggs. Are your expectations realistic?

    "A lifestyle brand" - brands are generally expensive to establish. Lifestyle brands moreso.

    Borrowing heavily to start a business saddles that business with debt. Not only that, no-one is going to lend a brand new unproven business money that is not secured by you personally, so if you borrow £50,000 for talk sake, the business fails a year down the line, then you personally would be liable for the repayment of the loan.

    Also, starting and running your own business is VERY stressful, so you might want to consider the impact on your longstanding health issues too.
    You are not special. You are not a beautiful and unique snowflake.
    • 27cool
    • By 27cool 14th Jan 17, 11:35 AM
    • 249 Posts
    • 193 Thanks
    27cool
    With respect. What the hell is "a foundation of goodness".
    • 27cool
    • By 27cool 23rd Jan 17, 4:20 PM
    • 249 Posts
    • 193 Thanks
    27cool
    I'm still mystified as to what is a "foundation of goodness". Perhaps someone other than the OP knows..
    • zx81
    • By zx81 23rd Jan 17, 4:26 PM
    • 14,384 Posts
    • 15,172 Thanks
    zx81
    I can only assume it's similar to a "happy ending".
    • Clive Woody
    • By Clive Woody 23rd Jan 17, 4:55 PM
    • 4,403 Posts
    • 5,013 Thanks
    Clive Woody
    I'm still mystified as to what is a "foundation of goodness". Perhaps someone other than the OP knows..
    Originally posted by 27cool
    Is this some of building project where they hide bodies in the foundations (bodies of good people in this case it appears)?
    Rugby Union - The Greatest Game
    • Alderbank
    • By Alderbank 23rd Jan 17, 6:01 PM
    • 95 Posts
    • 93 Thanks
    Alderbank
    'Foundation of Goodness' http://www.unconditionalcompassion.org/indexc.php is a charity founded in Ceylon to help the education of poor children by donating them school uniforms, satchels, stationery, etc. It looks very worthwhile.

    A lifestyle brand is a product range featuring the chosen charity and where a percentage of the purchase price is donated to the charity. Feelgood factor is key. There are lots of companies making lifestyle brands. 'Sevenly' https://www.sevenly.org/collections/humanitarian is one example.

    I can see that a business selling lifestyle branded childrenswear and homework supplies for example might work; as the OP says it's not a novel idea; but the sheer effort and stress involved to get it off the ground for anyone, let alone someone who suffers from anxiety, would be substantial
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