SB: Small Business Start Up Discussion

ILoveChocolate

Premier wrote: »

The restricted terms withinin business names is essentially covered by the following legislation:

Companies Act 2006 (sections 1200-1208)
The Company and Business Names (Miscellaneous) Regulations 2009.
The Company and Business Names (Sensitive Words and Expressions) Regulations 2009.

Thanks thats great very helpful

poohbear59

Hi, I have just found this thread and wish I knew about it before now. Loads of good advice on here, thanks.

I have a query related to business start up loans. We have spoken to every bank we can think of to try to find funding to complete our barn conversion which will become a holiday let. We have been turned down or else ignored by all.

At present we are in discussion with a local enterprise company who help small businesses. Their interest rate is around 14% which is really high. I wondered if we could start up with their loan and then when things are up and running apply for a personal loan at lower interest rate to consolidate the debt into a new more affordable loan. Would this be allowed or would I have to say it was for business use? I should say we are already mortgaged up to the maximum available to us.

Premier_2

poohbear59 wrote: »

Hi, I have just found this thread and wish I knew about it before now. Loads of good advice on here, thanks.

I have a query related to business start up loans. We have spoken to every bank we can think of to try to find funding to complete our barn conversion which will become a holiday let. We have been turned down or else ignored by all.

At present we are in discussion with a local enterprise company who help small businesses. Their interest rate is around 14% which is really high. I wondered if we could start up with their loan and then when things are up and running apply for a personal loan at lower interest rate to consolidate the debt into a new more affordable loan. Would this be allowed or would I have to say it was for business use? I should say we are already mortgaged up to the maximum available to us.

Yoiu need to really consider why the banks are all refusing to lend you this money by way or a mortgage.

There are many self build mortgage offers available out there - they will almost certainly be the cheapest form of borrowing. They will release funds as you progress the build. (This could cause you cash flow issues if you've got no savings and are mortgaged up to the max on your current home. There also needs to be evidence of you being able to make repayments on the loan whilst the property is still being built)
Once the property is built, you can change the mortgage to a buy to let one, (if it wasn't already one) again many companies offer these.

If the banks won't lend, then it can only be because they assess the risk as too great, so the only people who will possibly lend to you are those who will reflect the risk in their extortionate interest rates. Make sure you read all the small print of such loans as to any early exit fees payable. But alarm bells should be ringing in your own head if all the banks have already refused you.

poohbear59

Thanks premier, I have had a few sleepless nights considering, exactly as you suggest, that maybe we are not a good risk.
Next week the local enterprise group are sending a rep to have a look at our business proposition. They are recommended by Business Link in this area so I feel I can trust them but I will take care to read the small print. They have already given verbal approval to us paying off the loan (if we get it) early.

I will let you know how we get on.

antrobus

trixietoes wrote: »

Question is ... the company doesn't own this property (I do as a private individual) so how can we get it to become part of the business? We'd like proceeds from the sale or rent to become part of the businesses portfolio/capital to then reinvest.

Well I'd have thought you'd have to get a solicitor to convey the title in the property from the name Mr A N Other into the name of Other Developments Ltd and pay any stamp duty that became payable.

It doesn't strike me as a particularly good idea from a tax planning perspective. I'd go and speak to a real proper accountant and get some proper tax advice if I were you.

shelly247

Does anyone know how much notice you have to give if you are wanting out of your lease with a landlord. To move to cheaper premises to trade out of?

Premier_2

shelly247 wrote: »

Does anyone know how much notice you have to give if you are wanting out of your lease with a landlord. To move to cheaper premises to trade out of?

What notice is specified in the terms of your lease?

shelly247

We haven't yet signed it landlord pressing 4 signature. We are stalling at the moment. Have found cheaper premises. But not yet ours.Rent is paid every calender month.

Premier_2

shelly247 wrote: »

We haven't yet signed it landlord pressing 4 signature. We are stalling at the moment. Have found cheaper premises. But not yet ours.Rent is paid every calender month.

So the landlord has allowed you to use his premises without having an agreed lease in place? :eek:

Anyway, whether you've signed it or not, what notice is specified in that lease he want's you to sign. The fact you are paying him rent would show you acknowledge there is some form of rental agreement in place.

You should seek independent legal advice if you are hoping to get out on a technicality.

Or perhaps as the landlord seems to take such a carefree attitude to his business, why not just ask him what notice he expects and see what you can negotiate if it's not acceptable to you?

darwins_mum

A little advice needed; I am currently thinking of setting up a small business with a social enterprise element to it, have not yet identified which legal framework to use though.
I have adverse credit as I defaulted on 3 low level agreements after suffering income shock last year. Will this prevent me from opening a basic business account? Not knowing the answer to this has become a bit of a sticking point for me.
Hope you can help

DM