Loan conundrum - chicken and egg problem

derek_g

So here's my problem

i earn 30,000
i am offered a Directorship in the Company i work for and an increase in salary to 41,000
i need to purchase 30,000 of company shares

i need to borrow 30,000

i cannot get an unsecured loan (eeven for usual max of 25K) on current salary, and they will not accept future salary, even though it covers any repaymanet twice over.

No-one will lend for share purchase

so, who do i talk to?
the improved earnings start the day i get the loan, and the clock is ticking!

any advice?

i thought of applying for a spurious 'home improvement' loan, but cannot justift that on the current salary

i bank with RBS

loubie_lou

Can you remortgage?

Cumbrian_Male

Doesn't the company have funding available for you to purchase your shares?

Some companies have arrangements with their own bankers to fund share purchases solely for directorship holdings, as opposed to share options.

markmc999

Not an idea situation but what about 2 loans from different companies for £15,000 ?
Least that way you'd get the cash and then try to clear them off quickly

derek_g

markmc999 wrote:

Not an idea situation but what about 2 loans from different companies for £15,000 ?
Least that way you'd get the cash and then try to clear them off quickly

thought of that,
i would obviously have to declare the first loan to the second lender and reduce my chance of getting the second as a result.

as for re-mortgaging, my wife is keen that i keep this seperate for some reason!
Also, a loan would have no fees attached, and due to the nature of my property, a re-mortgage will incur fees and new survey which offset the more beneficial interest rate - but it may be the answer

Debt_Free_Chick

Would the Company's bankers offer a loan?

derek_g

they might and i'll try, but as a major high street bank, i think the rate is unlikely to be particularly competitive.

thanks

derek_g

thanks all
found a solution.

current bank (RBS) have offered a loan - they refused on the phone and internet, but were fine in branch.

rate is less than ideal, but no penalty to clear loan at any stage

will wait until i have three months or so at new higher salary and then apply for a better rate loan elsewhere and swap over.

seems like a plan!