Small loan for new business?

simpo03

Hi guys,
Having read so much on this site I'm finally posting something!

My friend and I are about to go into business together.
We need £2500 to cover initial start up costs.

Although we can afford this between us, we are exploring the idea of obtaining a small loan for £2000 to offset our initial cash outgoings.
We will repay this over 12 months.

Has anybody got any advice on where is best to look for a loan like this?
Alternatively would a 0% credit card be a better idea? We are both in our early 20"s and although we have a few years good credit history behind us, we may struggle to get the 0% rates from the bigger card companies.

Any help is greatly appreciated!!
Thanks

Tixy

Hi

Are you intending to run your business as a partnership or limited company?
I would be wary about going down the route of a card, as this would be in the name of just one of you, and should things not work out well only one of you would be liable to pay this back.

Have you looked at the business link website - lots of information on there about setting up in business and getting start up funding. Also, depending on what type of work you plan to do you might want to see if there are any grants available to you - again info on that site.

You might qualify for a loan from the princes trust, which comes with business support I believe or similar schemes aimed at young people http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1074297927

Good luck in your venture.

simpo03

Thanks for the reply.
We will be a partnership.

I'm aware of what the Princes Trust offers but unfortunately it doesn't apply to us.

We are just interested to see what options are available to get the £2000. Grants etc are unlikely so we really see a small loan or credit card as the two viable options.
Any other ideas or help would be fantastic!

27col

Try for a loan at zopa.com.If they will accept you then the rates are very reasonable.

[Deleted User]

could you not get £1000 each on seperate cc?

simpo03

yes i suppose that 2 cc's would be an option.

reading these forums just makes you so wary of using cards or borrowing money from anyone!! Maybe we will just invest our own cash upfront.
Thanks for the advice!

housebuyer_abc

simpo03 wrote: »

yes i suppose that 2 cc's would be an option.

reading these forums just makes you so wary of using cards or borrowing money from anyone!! Maybe we will just invest our own cash upfront.
Thanks for the advice!

If you can afford to live withour the cash in the short term this is by far the best way of doing it, you are always going to 'outlaying' at least 2000 - if you do it in cash up fron there is no interest charged and then if you do need to borrow in the future you still have the option open