Unsecured Loan Advice for Business?

Dirrtland

Hi Im a newb When it Comes to overdrafts and Loans, as I havent really had either, Im currently A Home study student, mum to a 8month old, trying to Start up a business Making Childrens clothing, Im currently going through Business link/St helens Chambers, Business Advisers, they give you a 1000 grant, but only after you have spent 2500 already, Im no where near that target!

I rent privately, So Can only really apply for a unsecured loan, But i do not know where to begin, I have looked up US loans, But I dont want to get into deep end or in with a bad company.

Im Just really hoping for advise, or information from anyone in/has been in same situation, Obviously im aware of Bank Business loans but again as far as im aware they will only lend you the amount your willing to have already spent :eek: .. Same predicament

Thanx in advance
Leea

[Deleted User]

all depends how much you want to borrow?one way if its not a huge amount would be via a credit card(not the cheapest way,but the repayments can be as low as 2% of the balance)

jonesMUFCforever

Do you have any income to repay any loan?
In my opinion getting into £2500 debt in order to get a £1000 grant is financial madness.
Think about it - if you had access to £2500 you don't need the £1000 do you?

Dirrtland

jonesMUFCforever wrote: »

Do you have any income to repay any loan?
In my opinion getting into £2500 debt in order to get a £1000 grant is financial madness.
Think about it - if you had access to £2500 you don't need the £1000 do you?

Exactly what my tutor said, Applying pressure on myself, plus they only give you a 6month window in which you must have spent that amount, so im not worrying about getting that grant as much, but still need startup funds from else where

But I'd like to borrow about upto £1500 Most banks, you have to be employed an as I will be newly self employed Just after i can get the money/loan, I think they wont agree ,, Once registered Self employed I'll have a little income.

thanx

jonesMUFCforever

You have answered your own question - no income means no loan -which is good for you as you will not be in debt.
What do you need the funds for?

Dirrtland

jonesMUFCforever wrote: »

You have answered your own question - no income means no loan -which is good for you as you will not be in debt.
What do you need the funds for?

Start up Funds, Website, New supplies, little to cover us whilst waiting to make a return on my creations, Trademarking, Tax....

jonesMUFCforever

I think you should get rid of your business advisor because reading between the lines they are rubbish.
A website can be done very cheaply, a little to cover us suggests to me that you are hoping to making a living at a future time but for now you will be using any funds raised to live on - very dangerous IMO.
If you make no money there will be no tax to pay.

Take it a bit by bit try to get business by word of mouth - most kids can set up a simple website for you for next to nothing - if needs be do it part time to begin with and get a job to supplement your income until you know that there is enough work around to make it worth your while to do it full time.