Cheapest start-up business loan

[Deleted User]

Only want something like £2K. Is that going to be something I can get easily?

To be honest, on a personal level, my credit rating is very good and never used to have problems getting loans/credit cards until recently when I found lenders to be a bit more strict....

Horace

What's a business loan? I can't get one:rolleyes: Have you tried The Arrow Fund?

[Deleted User]

Horace wrote: »

What's a business loan? I can't get one:rolleyes: Have you tried The Arrow Fund?

Not in West Midlands....

paulwf

For business banks mainly want to see some security for the loan, if you don't have any property then there is always the Enterprise Finance Guarantee. Banks also like to see a business plan which is worth writing anyway.

You could always get a new credit card and put your expenses on that if you think you can turn the money over in a shortish timescale. Try not to buy much until you have clients booked and get the money from them immediately so you can keep cashflow ticking over.

ukbill69

Dont think as a new business they will go near you. It has taken nearly 3 years of trading on one of my companies to get the bank lending to me. Your better off getting lending personally e.g loan/credit card/overdrafts.

slipp_digby

bearing in mind the bank will want some form of security on a loan anyway, and your business has no asset you will be essentially be borrowing and guaranteeing the money yourself anyway.

so a credit card with a long 0% on purchases might be one solution if you can get one.

even before the current downturn it was very difficult for SMEs to get loans as so many are prone to failure.

[Deleted User]

Hmm. But surely a personal loan has no security either so whats the difference?

loopy_lass

im thinking about something similar, a tanning salon up for sale near me, 2 half years left on lease, 12k worth of kit, but i think the governement are changing trading laws for these places so wonder if thats why she selling.

loops

gibbyni

I agree with all the above, if your starting a ltd business they will want you to put up personal security. If its for Sole trader etc, the loan will be in your name not the business so it will just be easier to get the loan through normal ways, personal loan, credit cards etc.

ukbill69

[quote=[Deleted User];24515367]Hmm. But surely a personal loan has no security either so whats the difference?[/QUOTE]

What makes you think this, dont you think they can take you to court?, dont think they can send bailiffs round your house and take all your things to pay off?