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  • FIRST POST
    • tomduck361
    • By tomduck361 22nd Sep 16, 10:24 PM
    • 3Posts
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    tomduck361
    Help: Loan question
    • #1
    • 22nd Sep 16, 10:24 PM
    Help: Loan question 22nd Sep 16 at 10:24 PM
    Just remortgaged recently me and my partner.
    Wanting 15k loan to renovate my partners hair salon? Was going to get a business loan, but for the amount we want we were told to get a personal. Obviosly with just signing up for a mortgage our credit files have taking abit of a bashing. When we search the loan eligibilty on MSE site hitachi (3.8%) says we have 90% chance, is there anything to worry about?
    Shud we potentially try get 7.5k each?
    Any help or previous similar dealings would be a massive help?
    Thankyou
Page 1
    • Pixie5740
    • By Pixie5740 22nd Sep 16, 10:27 PM
    • 8,370 Posts
    • 10,980 Thanks
    Pixie5740
    • #2
    • 22nd Sep 16, 10:27 PM
    • #2
    • 22nd Sep 16, 10:27 PM
    Who told you to get personal loans for a business expense?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • tomduck361
    • By tomduck361 22nd Sep 16, 10:29 PM
    • 3 Posts
    • 0 Thanks
    tomduck361
    • #3
    • 22nd Sep 16, 10:29 PM
    • #3
    • 22nd Sep 16, 10:29 PM
    Financial advisor
    • tomduck361
    • By tomduck361 22nd Sep 16, 10:38 PM
    • 3 Posts
    • 0 Thanks
    tomduck361
    • #4
    • 22nd Sep 16, 10:38 PM
    • #4
    • 22nd Sep 16, 10:38 PM
    Who told you to get personal loans for a business expense?
    Originally posted by Pixie5740

    Financial advisor
    • Pixie5740
    • By Pixie5740 22nd Sep 16, 10:54 PM
    • 8,370 Posts
    • 10,980 Thanks
    Pixie5740
    • #5
    • 22nd Sep 16, 10:54 PM
    • #5
    • 22nd Sep 16, 10:54 PM
    And what does your financial advisor suggest you say the loan is for, a new car, debt consolidation, home improvements perhaps? It's just that most, if not all, personal loans have something in their T&C about not being for business use. For example, I just got this off Sainsbury's website, "Your Sainsbury's Bank personal loan can be used for virtually any legal purpose like a new car, holiday, home improvements, or debt consolidation. We don't give loans for businesses, speculative purposes such as investments and timeshares."

    So you'll probably have to fib on your loan application. Will you get caught? Who knows but if you have the type of financial advisor who encourages you to tell porkie pies it might be time to find a new financial advisor.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • foxy-stoat
    • By foxy-stoat 23rd Sep 16, 9:59 AM
    • 1,069 Posts
    • 596 Thanks
    foxy-stoat
    • #6
    • 23rd Sep 16, 9:59 AM
    • #6
    • 23rd Sep 16, 9:59 AM
    Maybe get a couple of credit cards each?
    • MEM62
    • By MEM62 23rd Sep 16, 10:26 AM
    • 885 Posts
    • 591 Thanks
    MEM62
    • #7
    • 23rd Sep 16, 10:26 AM
    • #7
    • 23rd Sep 16, 10:26 AM
    Financial advisor
    Originally posted by tomduck361
    I would look for a new financial advisor.

    If the salon is running as a limited company then, if it fails, the debt belongs to the business. If you take personal loans you have the debt and if the business fails you will still be paying with no income.

    Speak to the bank that holds the business account and see what they are prepared to offer.
    • glennstar
    • By glennstar 23rd Sep 16, 11:23 AM
    • 124 Posts
    • 62 Thanks
    glennstar
    • #8
    • 23rd Sep 16, 11:23 AM
    • #8
    • 23rd Sep 16, 11:23 AM
    Most banks will not lend to small/new businesses without the directors placing personal warranties behind the debt, often secured by a second charge or similar, so being a LLC in that scenario is irrelevant.
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