Possible loan advice please

fishingcinema

Hi all

Without laughing too hard at me i have a question on behalf of a friend.
She has been offered to be in on a business venture that she needs £12k for

Now this is the bit you will probably laugh at.

She is a single unemployed mum.

The loan would lead to her being better of and would be able to come off benifits and have a job and pay her own way.

She has no idea where to start and is thinking the same as me and her that she has no chance.

She had £8.5k of credit over various credit cards, overdrafts, cataulogs and is currently using £1.8k of the total.

Her family have offered to lend her £3k between them.

I think she has an ok credit rating no missed or late payments on any of her accounts but she does have a ccj from jan 2008 for £138 that was settled in jan 2009 this was from her water company that she was in dispute with but she accepts she did not pay so got the ccj.

Is there any way forward for her any ideas would be greatly appreciated

zppp

I think she should contact Business Link or Princes Trust. It is going to be almost impossible for her to get unsecured personal borrowing on a sizeable level based on what you have said is her financial situation, and given she presently has no income.

stu12345_2

dont borrow to start a business save up, get a job and save up,and if it fails your no worse off, you need cash behind you that you didnt borrow to start a business. most folk i know learn their trade work for someone in that trade for years, save up and go it alone, hence they become the employer and no the employee.

paddyrg

I'm going to be frank a second - businesses fail all the time. I don't know what the venture is, but a 12 grand loan on top of the 10 grand debt she's already in is not a good move to throw into a business. And once she has done that, what does she live off? That 12 grand coming back as salary? Or more debt? I hope you don't mind me asking, but what is the venture? Does it depend on her unique skill at something (catering/interior design/etc) or is it a work-from-home-cashing-cheques-for-a-Nigerian-banker type of job?

fishingcinema

paddyrg wrote: »

I'm going to be frank a second - businesses fail all the time. I don't know what the venture is, but a 12 grand loan on top of the 10 grand debt she's already in is not a good move to throw into a business. And once she has done that, what does she live off? That 12 grand coming back as salary? Or more debt? I hope you don't mind me asking, but what is the venture? Does it depend on her unique skill at something (catering/interior design/etc) or is it a work-from-home-cashing-cheques-for-a-Nigerian-banker type of job?

Hi there frank :0)

Appreciate your comments.

She is not £10k in debt she has £8.5k credit but is only using up a small portion of this credit.

Appreciate that businesses fail all the time, the venture is going in on a pub with someone and with pubs dropping like flys then prehaps this is not a good idea for her.
Wish it was chshing cheques for nigerians as i would be doing it easy money, no i would not really.

I do not think she has really thought about this and it looks like she will not be able to source funds needed to go in on it anyhow. i shall let her down gently tommorow.

Many thanks all :0)

Clive_Woody

Unemployed and with a CCJ, wanting to borrow £12k for a business venture.

I would say her chances are slightly less than slim.

sharpy2010

Does she have experience of running pubs? There is a LOT more to it than most people unaccustomed to the job think.

Putting any money into a pub venture at the moment is a surefire way to lose it, unfortunately.

paddyrg

How do you own a small pub business? Invest in a large one and give it 12 months! If she is an experienced publican, this may be worth doing, but if she's going in cold it would be worth getting a lot of experience, maybe managing a pub for someone else for a few years first. It's a lifestyle, not just a job, and a lifestyle in one of the riskiest sectors at the moment. And just to make matters worse, she'd barely ever see her kids!

Probably best be a kind friend and steer her round this opportunity at the moment! (Sorry I misunderstood the debt/credit thing - but still...)

chalkie99

Drtynbkfrdsmvgrd wrote: »

Не ставьте цветы сразу в хлорированную воду из под крана, дайте ей отстояться. Гвоздики и лилии рядом с другими цветами сохраняются менее продолжительное время, чем в отдельном букете. Давайте же выясним причины, по которым люди так неравнодушны к этому прекрасному творению природы.

I can't argue with that.;)

paddyrg

Pretty sure that'll be spam as it is totally unrelated to the thread...

fishingcinema

paddyrg wrote: »

How do you own a small pub business? Invest in a large one and give it 12 months! If she is an experienced publican, this may be worth doing, but if she's going in cold it would be worth getting a lot of experience, maybe managing a pub for someone else for a few years first. It's a lifestyle, not just a job, and a lifestyle in one of the riskiest sectors at the moment. And just to make matters worse, she'd barely ever see her kids!

Probably best be a kind friend and steer her round this opportunity at the moment! (Sorry I misunderstood the debt/credit thing - but still...)

Hi there

Thanks for your advice, i think i will have a sit down and chat to her regarding it all and as you say try and steer her round the idea as it seems not to be a good option for her, no need to appologise i misunderstand alot :0)

Many thanks again