Loan to buy business but bad credit

Mart123_2

Hello everyone

I have been given a opportunity to buy a profitable business but need to raise the money.

The business will cost me £50,000 and i have around £10000 so will need to borrow £40000.

The problem is i am on a DMP which i have had for over 5 years now but since then i have not taken out any debt and have stuck to the plan.

I know the business is very profitable and could very easily make £40,000 back within a matter of months.

Would i be able to get a business loan with a DMP ( Bad credit rating ).

Do you know if a bank would touch me even if i could put together a very good business plan with exellent figures?

I would appreciate any help

Thanks

zppp

Mart123 wrote: »

Hello everyone

I have been given a opportunity to buy a profitable business but need to raise the money.

The business will cost me £50,000 and i have around £10000 so will need to borrow £40000.

The problem is i am on a DMP which i have had for over 5 years now but since then i have not taken out any debt and have stuck to the plan.

I know the business is very profitable and could very easily make £40,000 back within a matter of months.

Would i be able to get a business loan with a DMP ( Bad credit rating ).

Do you know if a bank would touch me even if i could put together a very good business plan with exellent figures?

I would appreciate any help

Thanks

Welcome to MSE

Unfortunatly I imagine as you have already stated that the DMP will still be on your credit file, and this means it is very unlikely you would obtain finance, even though you are looking at a good business plan.

Do you have any assets you could sell, or anyone that could act as guarantor for a loan?

inmypocketnottheirs

If you have 10k should that not have already been offered to your existing creditors rather be used to lever more credit:question:

Mart123_2

The £10,000 i have would be given from my dad, every other penny i have goes to repaying my debts. He does not want to put up the full amout and act as a guarantor because he is in his late 60s with no morgate and does not want it hanning over him at his time of life

Simon11

So whats your big idea then?

CLAPTON

your father knows you better than banks do but is unwilling to lend you the extra 40k even though you will easily make this back in a matter of months.
from the information supplied, it's very unlikley that a bank will lend you anything

barbarawright

Why is someone selling, for only £50,000, a business that will make back £40,000 in a few months?

ILW

barbarawright wrote: »

Why is someone selling, for only £50,000, a business that will make back £40,000 in a few months?

That is the first thing that would worry me. It does sound like some sort of scam.

PNPSUKNET

scam or troll...

Apples2

Nobody sells a profitable business.. why would they take £50k now when they could make £40k in only a few months and continue making potfulls?

Sounds like you are blundering from one set of financial mistakes into another. whoever owns this business is trying to scam you.

Borrow the £10k from your dad and repay your debts.