Lloyds TSB Business Loan

streetfast

Hi,

I have just opened up my LLoyds Business account. I had a meeting with the bank manager and we discussed a few things.

I am after investment into my business which has been very successful but unfortunately I was in a car accident which has made the business suffered (as its just me running and working it). Therefore I am after investment to help expand and get a few things going again, not much £5000 should do it.

Anyway, on the lloyds TSB risk assestment on my personal account puts me on a high risk factor which is bad. Also I managed to be a complete idiot and run lots of searches on my credit report sending my score crashing! Due to not being on the electrol roll (which I have not got sorted and will be listed on 1st dec) I was rejected on loans. Othewise I was just sort of good the electoral roll would have put me in at least that catagory.

Its important to note, on experian I have nothing bad other than the searches and high outstanding balance on a C/C of £1200 and Electroll rolle. I have no late payments.

On equifax its pretty much the same but apparently I have 1 late payment from 2006??

Therefore I am a very high risk factor thus no one would touch me....

Anyway I showed the lady my bank the figures from the business and she was very impressed and even went up to show the main man?? One month of sales was over £10,500. I have secured big contracts, kept costs low so on so forth and have big ideas that are realistic.

Also I have 2 vans and 1 car worth £7-8k puchased no finance. Now I want to get large quantities in stock to expand but I want to sell it to my bank, can anyone suggest any ideas, the business results I have produced are very good can anyone advise. They havent said no but will ring me to arrange a meeting with the main man to talk about my plans (I produced figures and business plan).

The figures seemed to pursuade them to keep an interest. Any ideas for helping me gain investment? I hope my credit score will not be the only deciding factor

Many Thanks

Rafter

The bank will want some security. That is either the assets the company owns, future profit streams or some sort of security against you and your assets.

Are you owed any money by your customers? In which case you could consider factoring their invoices to improve your cash flow. You could also see whether you can access any grants or other assitance from your local chamber of commerce or local business angels - particularly if you are creating local employment.

Good luck

R.

streetfast

Hi,

The assests to the business are:

2 x vans (total approx £5000)
1 x car (approx £3000)
£3000 stock money

Thats it.

I have just secured a contract with a local letting agency, who own 640 homes in the local area, supplying their kitchen appliances. I am going into futher talks tomorrow morning. I am going for a meeting with Barclays tomorrow afternoon also (for same reason as Lloyds TSB).

Lastly, where would I get a lead for these businesses that maybe able to help me, so on so forth - I am not too familiar with the process as I am only 22 not long been operating so on so forth.

I am very grateful for your reply.

jonesMUFCforever

Do you have a contract to renew all 640 homes or just a few homes that need new appliances from time to time?
I would be amazed if you had a contract to deal with all of them as you would be hopelessly out of your depth and you do not have the liquid assets to trade.

Not trying to rain on your parade just think though not all contracts are what they seem - you have to look at the downside and ask yourself what if....?

streetfast

Hi,

I appreciate your response. I have a local company who own 640 homes, I will be supplying kitchen appliances as and when they need them, hopefully! They have said yes after my price list and testimonals and visiting me, just need to talk quantities as they want some now (obviously to try me out). They buy homes regularly, and will need appliances to install at these new properties and replace faulty ones (wear & tear).

The problem is that the demand for my products are too high and I simply cannot keep up. If this company said I need 10 cookers asap delivering at 10 addresses I would have a problem as I do not have this many in stock, hence why I am after investment?

The business is catching on but im not big enough to meet the demand, I am turning business away and need a cash injection.

Hope this clears things up

jonesMUFCforever

Will a supplier give you credit terms?? Have you asked them?

streetfast

Hi,

No they only except payment there and then, no credit whatsoever, its pants!

jonesMUFCforever

Can't you get the local company to pay for the goods - you just take a fee for installing them?
Sometimes you have to think a little outside the box.

streetfast

I would be loosing too much money and risk the chance off loss since most people choose to install themselves to save £££.

I will keep thinking, oh and do you know if banks such as Barclays and Lloyd crecit check before allowing you a business account etc as Barclays are interested in investment upto £7000 but I am worried about my score?

Hope this makes sense rushing. Thanks

ILW

If you can get some sort of commitment in writing from your customer, it should help loads.

streetfast

Thanks, however the customer is on a needed basis so there is no certainty he will have a regular order plus he could end up going elsewhere, but I suppose showing I have got high demand should be a big bonus.

Anything on the credit check qu?