Business loan with no self finance?

themaestro

Hi all. I've worked in my local convenience store/off licence for the past 2 years and want to buy it. I'm 24 and my friend/colleague is 22. Our old boss had been there for 18 years and we wanted to buy it of him originally but lost out. He wanted £90,000 for the business (last year he made £44k net profit) and has done for the past 10 years. He sold it or £35k and my current boss wants out as he's basically !!!!!!ed it up and it's not making any money. I know what's gone wrong and how to solve it etc etc but i have no money. I love the job, the place and everything that goes with it and know me and my friend could get it back to how it was. All it needs is stock!! and proper management. We learnt from the best in my old boss who has had 2 shops previously and was area manager for woolworths back in the day. The problem i have is that i have a bad credit rating and no money behind me. It's a damn good business as there's no ther shop within a square mile and is surrounded by houses and factories, where we make a lot of money selling pies and sandwiches at dinner time.

What i want to know if is there is any way of getting a business loan with no deposit, especially during the current financial climate? We're hard working, committed and know how to run the business inside out...and properly...but that means nothing without money behind us.

Any help and advice would be most appreciated...even an offer from a private investor hehe.

Thanks in advance, Ashley.

jonesMUFCforever

Sorry but unless you have at least half of the money or a backer to guarantee you then nobody will lend to you at the moment.
Can you not rent the shop and agree to pay him monthly?

themaestro

My current employer is renting the building off my old boss but bought the business. My old boss was willing to put money up for us last time as he really wanted us to have it but i don't know whether he would be willing now, seeing as it's gone downhill. I've heard about the small firms loan guarantee whereby 75% of the loan is guaranteed by the government but don't know whether you still have to put money up yourself?

~Brock~

themaestro wrote: »

My current employer is renting the building off my old boss but bought the business. My old boss was willing to put money up for us last time as he really wanted us to have it but i don't know whether he would be willing now, seeing as it's gone downhill. I've heard about the small firms loan guarantee whereby 75% of the loan is guaranteed by the government but don't know whether you still have to put money up yourself?

Put a business plan together and take it to him - show him that you know why it went downhill and what you intend to do to put it right. Appeal to his better nature. As he knows you already you may already have a foot in the door.

Go for it!