starting ltd company-need funding

confusedlittlebunny

Hi,

I would like to start a Ltd company but require funding and have done alot of research.

I have approached to high street banks for a business loan of approx £15k-£20k but they require a "like for like match" which i simply do not have.

Can anyone refer me to either companies that offer grants for small companies or loan.

I do not have any money to invest myself and my credit rating is not 1st class......

motorguy

confusedlittlebunny wrote: »

Hi,

I would like to start a Ltd company but require funding and have done alot of research.

I have approached to high street banks for a business loan of approx £15k-£20k but they require a "like for like match" which i simply do not have.

Can anyone refer me to either companies that offer grants for small companies or loan.

I do not have any money to invest myself and my credit rating is not 1st class......

• You have a poor credit history.
  
• You have set up a limited company so there is no liability on you.
  
• You are not putting in any money yourself.
  
• You are expecting the bank to take all the risk.

More chance of getting a lottery win TBH

You are going to need to look at your costs, and as to why you need £15K-£20K startup. Is there no way to start for much less?

How are you going to survive when the business is in startup mode? Have you money set aside for when you need an income, but the business cant provide it?

Also, ask yourself WHY you think your idea is definitely going to fly (i suspect you're not 100% confident hence the limited company)

And IF you TOTALLY believe in it, then be prepared to put your money where your mouth is - max out your credit cards, borrow money from friends / family, take out a personal loan, sell anything you dont need, etc, etc.

motorguy

If you could give us an overview of what your business is going to do, even without giving us specifics and as to what you plan on spending this £20K on, then we may collectively be able to offer alternatives.

confusedlittlebunny

pgilc1 wrote: »

• You have a poor credit history.
  
• You have set up a limited company so there is no liability on you.
  
• You are not putting in any money yourself.
  
• You are expecting the bank to take all the risk.

More chance of getting a lottery win TBH

You are going to need to look at your costs, and as to why you need £15K-£20K startup. Is there no way to start for much less?

How are you going to survive when the business is in startup mode? Have you money set aside for when you need an income, but the business cant provide it?

Also, ask yourself WHY you think your idea is definitely going to fly (i suspect you're not 100% confident hence the limited company)

And IF you TOTALLY believe in it, then be prepared to put your money where your mouth is - max out your credit cards, borrow money from friends / family, take out a personal loan, sell anything you dont need, etc, etc.

why are you judging me????? and being negative? if you have no positive input to my question then why answer, your negative input was not asked for nor means anything to me!!

confusedlittlebunny

pgilc1 wrote: »

If you could give us an overview of what your business is going to do, even without giving us specifics and as to what you plan on spending this £20K on, then we may collectively be able to offer alternatives.

I have a business plan and estimate my start-up costs to be £15-£20k, my knowledge, qualifications and experience in the field I wish to trade in are first class and i am confidence. and based upon my situation I mentioned in my first post I would like any positive suggestions? if their is no hope then I have to look at alternatives, I was merely asking for advice.....

wayne2786

im not sure how much this would help, but have you tried contacting business link to see if they can put you in touch with anyone? i did that and managed to get a £3000 start up fund which i did not have to pay back, sadly my business didnt go how i planned by i wasnt left with £3000 to pay back, sadly however they have now put that project on hold and it was only for the Leeds area, basically you had to live in Leeds, or open a business in Leeds. but surely your local council/business link should be able to point you in the right direction.

or maybe try the princess trust? i know there grants arnt huge but every little helps.

I hope it goes well for you.

Savvy_Sue

Princes Trust - you have to be under 25, I believe.

Businesslink

Also I don't think either of these cover all the UK, there may be regional alternatives.

There is less and less start up funding for new businesses, and the banks are less and less willing to lend to those without any track record. Even if it's a ltd co you've set up, you will still almost certainly be required to give a personal guarantee, and without a good credit record, that's going to be hard. You may think pgilc was harsh and judging you, but frankly there's no use us being less direct: anyone considering lending you money is likely to take the same hard-nosed approach. The advice in his last paragraph was sound: if you can't borrow it from the bank, consider where else you could borrow it from. If you can't 'sell' your plan to the bank, and you can't 'sell' it to your nearest and dearest, consider why that might be.

IF you had a track record, that could be looked at. IF you were putting in as much as you wanted to borrow, that could be put into the equation. IF you were willing to tell us what these start up costs covered, we might be able to suggest how to do it 'on the cheap', or at least differently.

chalkie99

confusedlittlebunny wrote: »

why are you judging me?????

Possibly because only two months ago you were posting about how your ltd company had ceased trading with 40k of debts and how you were also considering personal bankruptcy because of your personal debts.

Now ask yourself, if you were a lender and someone with your record asked you to put up 20k with no input or risk on their part, what would you say?

badgerhead

confusedlittlebunny wrote: »

why are you judging me????? and being negative? if you have no positive input to my question then why answer, your negative input was not asked for nor means anything to me!!

to be fair, i dont think he's being mean, it's kinda true. can you not start the business on a very small scale as a sole trader,maybe at weekends, putting all profits back into the business? sometimes not possible i know, everyones situation is different.

paulwf

confusedlittlebunny...I find the small biz board to be different to the other MSE forums as generally it is the only board where people are putting tens of thousands of their own money on the line rather than looking to just save a bit of money or have a chat and get some mutual support. Sometimes the best advice you can get is to not risk all your money.

I have to agree that by looking at your recent posts you have little chance of getting funding. Grants are generally just for a couple of thousand and nearly all have been stopped. Other support schemes have seen repayments not met so lending is now severely reduced.

I think your best course of action is to get a normal job and pay off all debts and build up a cash reserve and then build a business plan around starting off small and part time and building up from there. I know getting a job is easier said than done but if you have what it takes to make a success of your own business then you won't have a problem finding a job.

motorguy

confusedlittlebunny wrote: »

why are you judging me????? and being negative? if you have no positive input to my question then why answer, your negative input was not asked for nor means anything to me!!

I'm not judging you.

And to be quite honest, the last thing you need here is positivity - you need someone / some people to give you a reality check. If your business idea passes that, then you might stand a chance. Its interesting though that you only want positive comments and that you've taken offence at what are a series of honest statements.

I've given you real information based on real experiences. Sorry that you are offended by my 'negativity'.