Personal Loan for Business Use!!!

dancov

Hi there,

My girlfriend and I are setting up a business togther (just a small dog walking business) and we need to borrow around £4000 to buy a van and have it kitted out accordingly.

I don't think we can get a business loan as I was declared bankrupt 3 years ago, so no bank in the land will lend us money. In which case we decided that my girlfriend would borrow the £4000 as a 'Personal Loan', however we popped into our local bank yesterday to get a quote and one of the statements they made was that this money shouldn't be used for 'Business Use'.

We both hate being dishonest and not playing by the book, but really don't know what to do. So what we were wondering is, "What are the implications of fibbing and saying the money is being borrowed to buy a car and then using it to fund the purchase of a van for business use?"

Many thanks

StuTheDon

dancov wrote: »

Hi there,

My girlfriend and I are setting up a business togther (just a small dog walking business) and we need to borrow around £4000 to buy a van and have it kitted out accordingly.

I don't think we can get a business loan as I was declared bankrupt 3 years ago, so no bank in the land will lend us money. In which case we decided that my girlfriend would borrow the £4000 as a 'Personal Loan', however we popped into our local bank yesterday to get a quote and one of the statements they made was that this money shouldn't be used for 'Business Use'.

We both hate being dishonest and not playing by the book, but really don't know what to do. So what we were wondering is, "What are the implications of fibbing and saying the money is being borrowed to buy a car and then using it to fund the purchase of a van for business use?"

Many thanks

If the bank found out it would be classed as fraud and your agreement would be terminated potentially - meaning you'd have to repay all the money.

If you cant save up for the van why could you not lease one?

Peeky

If it is unsecured which it would be then the money could be spent on anything. If the business doesnt succeed would you still be able to make the repayments?

dancov

StuTheDon wrote: »

If the bank found out it would be classed as fraud and your agreement would be terminated potentially - meaning you'd have to repay all the money.

If you cant save up for the van why could you not lease one?

Hi,

The cost of leasing a van is more than double what the loan repayments will be. Our plan is to be leasing a new van in 3 years time when we know the business is secure and can afford the lease agreement.

dancov

Peeky wrote: »

If it is unsecured which it would be then the money could be spent on anything. If the business doesnt succeed would you still be able to make the repayments?

Hi,

The repayments could easily be repaid if the business fails as neither of us has any other debt whatsoever and we keep our outgoings to a minimum.

jonesMUFCforever

dancov wrote: »

Hi,

The repayments could easily be repaid if the business fails as neither of us has any other debt whatsoever and we keep our outgoings to a minimum.

How many times I have heard this over the years! :rotfl: