Business Loan

Nosht

DavidPom wrote: »

They are all contracted and most have standing order retainers setup with my bank account. So im pretty safe.

Obviously you are trading & making money at the moment.
Most new businesses fail because they expand too quickly, overtrade & don't receive enough money back in time from their customers.
Be patient, continue as you are just now & save for the future.
Low overheads & low wage bills are cost savings & contribute more to your profits. :j


Regards,


N.

DavidPom

Hi there for all the help.

I will answer a few comments.

1. I cannot work from home due to the lease agreement on the house, makes it illegal to run a business from the house.

2. I need better equipment so i can work more effectively and take on larger projects. The loan would cover equipment, furniture and 3months rent.

3. The offices would be rented weekly and it would be too risky to get the offices without a loan to support the first 3 months rent while i go out and get new clients. (as stated above i can afford to cover the loan repayments and rent with what i earn now but new clients would be what covers my living expenses.)

4. I have been in the business now for 4 years, which is why i now wish to expand my business, i dont wish to be a small company working from home but grow into a well established design company. As well as earn more money so i can become independent.

jonesMUFCforever

All you can see at the moment is the upside of everything - what happens if your clients go out of business?

DavidPom

Because my clients are very secure

I do work for:
• M&S
• Boing
• Morrisson
• The UN
• Large london publishing companies

and yes a few smaller businesses. I hardly think they are going to go out of business overnight somehow. Why do you always look on the negative side of things? Its not like i have all my eggs in one basket

jonesMUFCforever

DavidPom wrote: »

Because my clients are very secure

I do work for:
• M&S
• Boing
• Morrisson
• The UN
• Large london publishing companies

and yes a few smaller businesses. I hardly think they are going to go out of business overnight somehow. Why do you always look on the negative side of things? Its not like i have all my eggs in one basket

Well your own bank won't lend to you despite that impressive list of clients - what else can I say?

DavidPom

Apparently it all comes down to the credit rating. No credit rating. No loan! Trying out Frederick's foundation at the moment and capitalized business support. Joys of ridiculous interest rates.

alexthecheese

Any family or friends that can 'front' the loan for you? Probably not the best term for it, but you know what I mean.

paulwf

Hi David,

You may be better off posting on the small business forum on this board as well.

Have you contacted Business Link yet and gone through options with them? Also check out local enterprise agencies or any business departments at your local council. In my area there is a scheme that lends to businesses amounts in the region you require specifically when they can't get bank funding, so do some digging.

Some equipment can be leased/financed instead of getting a loan, although this might require security. Between leasing, credit cards and an overdraft plus cutting upfront costs right down it might be possible to get there.

Alternatively you may have to set up an Ltd and give some equity away in exchange for an investment...a last resort but worth looking at.

I'm sure you'll get there one way or another...good luck!

housebuyer_abc

alexthecheese wrote: »

Any family or friends that can 'front' the loan for you? Probably not the best term for it, but you know what I mean.

Why not approach one of your contracted customers and offer them a substantial (20%) discount if they pay for 6 months up front. That may well clear you the amount you need without outside help