Trying to get a business loan but can't due to 'bad' credit.

Andie1970

Hi!

12 months ago I set up a DMP with the CCCS.

I've made regular payments to all my creditors since then and in the meantime my business has been going from strength to strength.
I'm now in a position to expand the business which will in turn increase my income meaning I can pay off my debts quicker.
I have my business account with HSBC and they suggested a £10,000 overdraft to help with the business expansion.
I put together a VERY detailed business plan yet when it came to the crunch it was a case of 'Computer says no!'
HSBC asked me to check my credit with Experian and it showed 4 default notices from Egg, Sainsbury's and two from Nat West. I'm assuming this is as a result of making minimum payments of £1 (as suggested by the CCCS) while the DMP was being set up.
My other creditors all show satisfactory so it's very frustrating that just a couple are causing a stumbling block.
I feel in a catch 22 situation as in order to pay off my debts quicker I need to expand my business yet can't expand my business because of the default notices on the very debts I would be able to clear if I had the funding!!
Anyone have any advice on how I can clear the default notices or even another type of business funding!!

Thanks!!

inmypocketnottheirs

Not a chance of getting main stream funding whilst you are on a DMP and have default notices.

This shows to lenders that you do not pay your debts.

CLAPTON

The default notices are a matter of fact and there is no way of getting them removed; in fact you are relatively luck that all your creditors didn't issue default notices.
If they showed 'settled' then that would help but that clearly isn't possible in your situation.
It's extremely unlikely that any lenders will provide an unsecured loan.

Elbee

Andie1970 wrote: »

Hi!

12 months ago I set up a DMP with the CCCS.

I've made regular payments to all my creditors since then and in the meantime my business has been going from strength to strength.
I'm now in a position to expand the business which will in turn increase my income meaning I can pay off my debts quicker.
I have my business account with HSBC and they suggested a £10,000 overdraft to help with the business expansion.
I put together a VERY detailed business plan yet when it came to the crunch it was a case of 'Computer says no!'
HSBC asked me to check my credit with Experian and it showed 4 default notices from Egg, Sainsbury's and two from Nat West. I'm assuming this is as a result of making minimum payments of £1 (as suggested by the CCCS) while the DMP was being set up.
My other creditors all show satisfactory so it's very frustrating that just a couple are causing a stumbling block.
I feel in a catch 22 situation as in order to pay off my debts quicker I need to expand my business yet can't expand my business because of the default notices on the very debts I would be able to clear if I had the funding!!
Anyone have any advice on how I can clear the default notices or even another type of business funding!!

Thanks!!

I'm not sure which region you live in, but in the East Midlands, there is a scheme that you could have a look at. They will consider people with bad credit issues, but there is no guarantee obviously. A similar scheme may operate in your area.

http://www.first-enterprise.co.uk/business-loans.php

ILW

It is entirely possible to expand a business bt re investing priofits rather than borrowing.

inmypocketnottheirs

ILW wrote: »

It is entirely possible to expand a business bt re investing priofits rather than borrowing.

Very good point and well made. Why didn't I think of it!

housebuyer_abc

ILW wrote: »

It is entirely possible to expand a business bt re investing priofits rather than borrowing.

In fact isn't that the usual way - and definelty the preferred method pre 1990's and look where all that has got us