Getting a business bank loan

EssentialParadox

Does anyone have any suggestions about shopping around for a business loan? I've been in a couple of banks but they said I'd need to open an account and apply before I could find out if i'd even be eligible. I can't imagine myself going and opening bank accounts with all the major banks to apply for loans there, so is there any advice here?

Tixy

Seems odd - is your business a limited company? Is this a start up business or an existing one?

For a startup often its a condition of getting funding that you agree that you will have your bank account with them, but you wouldn't be expected to open it up until they had reviewed your business plan and put the application through the credit team for approval.

EssentialParadox

Tixy wrote: »

Seems odd - is your business a limited company? Is this a start up business or an existing one?

For a startup often its a condition of getting funding that you agree that you will have your bank account with them, but you wouldn't be expected to open it up until they had reviewed your business plan and put the application through the credit team for approval.

Thanks for the reply, Tixy. Yeah, it's a startup. The bank who gave me the impression that I'd need to open an account first was HSBC, although this was after I spoke with the business manager about the business and the loan. He seemed quite confident i'd get the loan at the time so maybe he was simply confident I'd get it and told me the next steps.

But if it's normal to submit my business proposal to the banks to look over them and give me a decision, then maybe I should continue the process with HSBC while I also submit my loan to the other banks. Does this seem like a good option or could it affect my credit status applying for several loans at once?

[Deleted User]

if HSBC are confident they can lend you then money then do anything they ask !

jonesMUFCforever

As long as there is no cost to you or the company I would open an account at any bank if I though they would lend to me.
If the loan is not forthcoming cut everything up send it back to them with instructions to close the account.

They will soon get the message about it costing THEM to carry on this practise.

EssentialParadox

Talked to Santander today and they told me the same thing.

Jones, I would quite happily open bank accounts with them all, but it's such a long hassle each time—not just for opening, but also for closing the account—and some of them charge when it's business banking. This is a little odd, I suppose getting a business loan isn't as shop-aroundable as a personal loan is.