Would a secure personal loan be the best option

allanwhyte77

Hi,
Any advice would be greatly appreciated. Within the near future I will be inheriting around 45k which I plan to invest in a new business venture. Unfortunately, I don't know when these funds will be available but I would estimate within one to four months.

I have recently become aware of a business opportunity which I would like to purchase which would require me to fund within the next six weeks. I would estimate that I would have to have at most, 30k at my disposal for this investment.

I have around 50k equity in my property, and around 5k in the bank. What would be the best option available to me to fund this purchase? I have a very good mortgage deal with A&L standard SLV since I've been with then 6 years so would be reluctant to ditch this deal for a remortgage as I have the funds available to me within the next few months.

I have an excellent credit history, several cards which are paid off each month never missed any payments which is traceable over at least 10 years, with no debt at the moment.

Would a secured personal loan with no early repayment charges be my best option?

Tixy

Hi

I think the best option would be to wait until you have your inheritance in your bank account. Spending money you anticipate you will get often leads to lots of problems.

If you secure this debt on your property and the business opportunity fails then you are at risk of losing your home. Whether you would even get a secured loan will depend on your house value and LTV rather than just the amount of equity you have.

immoral_angeluk

Agree with Tixy, making a high financial commitment without the money in your hands could end very, very badly.

allanwhyte77

Thanks for the advice. I don't see any problems with my inheritance, it's based on the sale of my father's house which we have exchanged contracts on with a first time buyer, which I will part inheriate in accordance to his will.

The business I'm interested in is familiar to me and is in profit. The current owners are business partners who have fallen out with each other due to disagreements on another business they are involved in together. They've decided to go their seprate ways and the business I'm interested in will shortly become available.

Mags_cat

I really think the best advice would be to wait until you actually have the money. There are some foreseeable things that might cause that that to stall and that might leave you in a bad way - with a loan secured on your home that you cannot repay.

I know that may not be what you want to hear, and I hope it works out for you. Can't be the easiest time, dealing with an estate.

jonesMUFCforever

Why buy the business then as opposed to starting up in competition?

bouncydog1

Although the business is familiar to you have you been able to review all of the financials, the business plan and confirmed orders etc?

Appreciate the reason you are being given for the fallout may be genuine, but where a business is very successful it seems odd that the partners will not try to put their issues aside if it is really doing that well.

No offence meant and not trying to put you off but would hate to see you be taken in and lose your money.