securing funding to purchase a business

Options
A_Foy
A_Foy Posts: 1 Newbie
in Small biz MoneySaving
To the forum... I've been wanting to own my own business for a long time but the reality is, I have no savings with which to finance such a purchase.

I did look into grants and Peer-to-Peer loans but nothing appropriate was available. So my question is... what other avenues could I pursue?

Comments

  • Savvy_Sue
    Savvy_Sue Posts: 46,030 Forumite
    Name Dropper First Post First Anniversary
    Options
    Saving.

    Going into partnership with someone who has the funds.

    Starting on a small scale such that you don't need to borrow, and growing from there.

    You are vanishingly unlikely to be able to borrow money to buy a business.
    Signature removed for peace of mind
  • Spuggy200
    Spuggy200 Posts: 38 Forumite
    Options
    Virgin Money do start up loans - needs a solid business plan obviously.

    Try Business Link, depending on your area you might be able to get a grant or funding - again solid business plan.

    Why do you want to buy a business why not create one yourself? - rarely do people sell a profitable business, there's always something up with it for them to sell it. Unless it's retirement but even then that's often a yesteryear business.
  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Name Dropper First Post First Anniversary
    Options
    A_Foy wrote: »
    I have no savings with which to finance such a purchase.

    Do you have savings to finance your personal needs for a few months whilst the business gets up and running?

    It's possible to run a shoestring business and build it up from virtually nothing, by reinvesting your profits, but virtually impossible to do that if you need to draw out some of those profits to pay your rent/mortgage, utilities, food, etc as well.

    Also no investor, whether a bank or crowdfunding, will lend money to you that you're going to draw out for personal expenses - they'll want to see 100% of it going into the business itself, to buy stock, equipment or premises, or marketing/development, etc.
  • motorguy
    motorguy Posts: 22,477 Forumite
    Name Dropper First Anniversary First Post
    Options
    A_Foy wrote: »
    To the forum... I've been wanting to own my own business for a long time but the reality is, I have no savings with which to finance such a purchase.

    I did look into grants and Peer-to-Peer loans but nothing appropriate was available. So my question is... what other avenues could I pursue?

    To get money to buy or start a business with no money of your own may require you to look towards the three Fs - Family, Friends and Fools. You dont have a rich favourite uncle for example, that might help?

    Very hard to get anyone to lend to buy a business, unless there is a bricks and mortar purchase involved that you could get a commercial mortgage against. And even then it will be for a percentage of the value of the premises, not the whole amount.
  • antrobus
    antrobus Posts: 17,386 Forumite
    Options
    A_Foy wrote: »
    ....I did look into grants and Peer-to-Peer loans but nothing appropriate was available. So my question is... what other avenues could I pursue?

    Crowdfunding.

    Although you would likely need to be able to spin a good story with layers of BS in order to succeed. But it has been done.:)
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.3K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards