Wanting to start a business, but my credit history is very poor

topaztiger1983 · 23 March 2017 at 8:45PM

Hi all

I am looking to start a pet supplies business, but my credit history is very poor and I am unemployed

I do not have any funds of my own to invest

I have spoken to NEA (National Enterprise Allowance), but they said I would encounter the same problem with them, and to come back when I have the funds to start up

I am to old for the Prince's Trust Enterprise Scheme

I have tried several loan companies, but been rejected

Only loan companies offering me a loan seem to be scammers, as they want the first months repayment up front,, due to my bad credit, which I am not falling for

I need some help here as going into business for myself seems to be the only option at the moment as I can't work due to my partners Learning Difficulties, and she can't be at home alone without worrying and getting upset about it, we have applied for PIP but she apparently does not qualify for it

I want to start a business so she can come with me, and then she does not have to be left alone

I really need some help here, please

Thanks

TT

DCFC79 · 23 March 2017 at 8:55PM

As you have found out you need to have your own capitol to get anywhere. You would be better off looking for a business eg a corner shop(or a pub with a living arrangements upstairs) looking for someone else to run it as the current person is retiring but this wouldn't give you an option of running a pet supplies business.

I don't know any other options I'm afraid.

System · 23 March 2017 at 9:03PM

I have a funny feeling that you've not done any market research or rudimentary business plan because if you had you'd know the idea was dead in the water along with things like starting a computer repair business and opening the 50th Pizza shop in your town.

The pet supplies market is flooded thanks to pet food manufacturers offering schemes where any Tom, !!!! or Harry can phone them up and tell them they want to buy 1000 25k bags with their own name and logo on.

topaztiger1983 · 23 March 2017 at 9:23PM

I think that is a bit harsh Tarambor, you know nothing about me

[Deleted User] · 23 March 2017 at 9:46PM

To get a "proper"loan e.g from a bank they will expect you to have at least 50% of the cash needed to put into the business. Did she appeal the PIP decision?

topaztiger1983 · 23 March 2017 at 9:47PM

Yes she did appeal still said not, going to go to tribunal but not hopeful

MoneySaver123 · 23 March 2017 at 10:38PM

What are the names of the loan companies asking for upfront payment? I can potentially tell you if they are legit or not being in this industry.

topaztiger1983 · 23 March 2017 at 10:40PM

UK Fast Loans and Panda Loans

MoneySaver123 · 23 March 2017 at 11:21PM

Yeah, I'd give both a wide berth. And these are personal loans - you're better off looking for business finance but as you already understand, a small startup isn't attractive to a lender, especially if you've got no experience.

Do you have a network? Perhaps you could buy a small amount of popular/fast moving stock and sell to your network plus friends and family, reinvesting the profits. Once you've done this for a year or so you will have more options. More importantly, you'll be able to tell if the idea is going to make money and you'll learn valuable information from speaking to your customers directly.

poppasmurf_bewdley · 23 March 2017 at 11:49PM

Presumably you have written a business plan together with all the financial projections required to put before potential loan providers?

Yes, of course you have.:eek:

The pet supply industry these days has been taken over by the big boy pet superstores who wouldn't buy a thing from you.

Sorry, but you are daydreaming if you think this will ever get off the ground.

Richey_ · 24 March 2017 at 12:15AM

Panda Loans are a pay day loan company who charge around 1737% interest and the maximum they will lend you is £1000 for thirty days.

Would you be able to get a business off the ground with your capital fully replayed (plus 1737% interest) within 30 days plus take a wage and cover all overheads, vehicle, bills etc?

I'm no business expert, but that would seem a massive challenge . Not only do you need to sell a lot of dog food, you would need an immediate substantial customer base and a huge profit margin....

Wanting to start a business, but my credit history is very poor

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