Business Loans

bigdavecox90

What should I know?

And most of all, what will I need to qualify for one?

jonesMUFCforever

If you know as little as what you have posted its not for you.

You need a business, a business plan a reasonable deposit as banks no longer do 100% business loans, accounts for the last few years to confirm the business can afford the repayments etc etc.

m33r4

I am also after a business loan as a starter business. I don't have a deposit as I have no savings as such. I own my house outright and have about £400 on credit cards which I am paying back at 0% interest. One card is being paid off by June 2010 and the other I can clear by September 2010. I don't intend to borrow any more money off credit cards. I checked my credit rating on annualcredit.co.uk and turns out my credit score is 738 out of 1000 [3 out of 5 stars] for late payments which are resolved.

What is my best option for getting a business starter loan for the amount of £13,000 please?

Thanks for your input.

bigdavecox90

jonesMUFCforever wrote: »

If you know as little as what you have posted its not for you.

You need a business, a business plan a reasonable deposit as banks no longer do 100% business loans, accounts for the last few years to confirm the business can afford the repayments etc etc.

Well that's why I'm asking before I go any further with my plan?

Xbigman

You will need to show that you are putting something into the business yourself. That could mean putting your property up as colateral, but that is incredibly dangerous. Otherwise you need to put in some cash.
You will also need a business plan that lays out all your projected expences and income. No business plan = no loan. Its that simple. As part of the business plan you will also need to show you have all permissions required in advance. IE if you plan to get a van you may need permission to park a commercial vehicle near your home in some area's of the country.

I suggest you try the local council and employment service to see if they have any small business courses available.
Regards



X

bigdavecox90

Xbigman wrote: »

You will need to show that you are putting something into the business yourself. That could mean putting your property up as colateral, but that is incredibly dangerous. Otherwise you need to put in some cash.
You will also need a business plan that lays out all your projected expences and income. No business plan = no loan. Its that simple. As part of the business plan you will also need to show you have all permissions required in advance. IE if you plan to get a van you may need permission to park a commercial vehicle near your home in some area's of the country.

I suggest you try the local council and employment service to see if they have any small business courses available.
Regards



X

Thanks for your advice mate.

Could local business grants work?

One_Day_Rodney

You may find quite a bit of help from your local council.

My local council is Broadland and they offer quite a lot of business (sometimes free) training and various grants.

http://www.broadland.gov.uk/council_and_democracy/397.asp

There are several links to training and grant information.... have a word with your local council, see what they do.

They may also point in the direction of other organisations that can help, depending on the particular business you want to run.

HTH

Joeler

Here are my experiences of business bank loans:

1) We applied for a starter business loan 2 years ago for about £12k. We had business plan, projected profit and loss, cashflow, how we were going to achieve figures, detailed information on the market, backgrounds on the directors and why we were the right people to take the business from nothing to our projected 250k turnover in year one etc etc, all fairly standard stuff for people wanting to borrow money. Turned down blankly by all banks we spoke to (three of the big ones).
2) The reasons were because they tend to do things like check out other customers they have in your industry, and compare how they are performing to asses the levels of risk, as well as scrutinising your facts and figures and whether they think it is even viable.
3) Even if they do decide that you have a fairly good plan, and the other checks they do come back ok (inc personal credit checks) then they will still want you to at least match what you are asking for, or put up something as collateral (house usually).
4) Once you are up and running, and you can prove that you have a viable business (decent money going through the account and figures all looking good) then they will be more inclined to lend you money in the way of overdrafts, credit cards and business loans,
5) We never got to borrow any money, but were able to save and or acquire finance personally to cover ourselves for the time we wouldn’t be earning. 6 months in and we have smashed our projected figures and the bank are constantly trying to lend us money!!

My advice in a nutshell:

-Scrutinise every penny you need and what you need it for – is it essential? I guarantee you can remove some aspects of that loan you think you need by cutting back.
-If you are certain it will work (which you need to be) save the money you need or borrow from friends and family. It will save you interest on loans and you will be a lot more fulfilled knowing you have funded it yourself and with the help of people who care about you. You can pay them back when you become successful.

Keep going and good luck, it will happen if you want it to.

Now back to work, this business won’t run itself!
Joeler