business loans

cwrtcoed

Hi
I presume this thread has been up before somewhere? My wife and i are looking to set up a new business. However, the problem is like most people we need funding, and have an appointment with our Banks business manager with nat west monday.
The business plan is finished and hope to look to borrow £100,000, if for whatever reason they refuse is there anywhere else that would help. The business we have in mind will guarantee to make a large profit over 12 months so im hoping they will help, i've been with nat west for over 28yrs and my accounts are excellent, but incase they dont im looking at other options here. Possibly other recommended banks, government grants etc.

savagej

I would make sure you mention this:-

http://www.bis.gov.uk/policies/enterprise-and-business-support/access-to-finance/enterprise-finance-guarantee

Although I am sure the bank will bring it up.

jonesMUFCforever

cwrtcoed wrote: »

Hi
I presume this thread has been up before somewhere? My wife and i are looking to set up a new business. However, the problem is like most people we need funding, and have an appointment with our Banks business manager with nat west monday.
The business plan is finished and hope to look to borrow £100,000, if for whatever reason they refuse is there anywhere else that would help. The business we have in mind will guarantee to make a large profit over 12 months so im hoping they will help, i've been with nat west for over 28yrs and my accounts are excellent, but incase they dont im looking at other options here. Possibly other recommended banks, government grants etc.

Don't go in to the meeting overconfident.
The remark about a guaranteed future profit would put me on alert if I was interviewing you.

ian_h

A lot will depend on the Sector you are operating in and the type of business you are looking at starting.

Having been through the EFG process myself my best advice would be know your business plan inside out, have variable models so that if things DONT go as planned you can evidence that you have a plan that is robust enough to meet your commitments.

Be prepared to put your money where your mouth is in terms of your financial risk with the project and above all know the plan, look at scenarios and work that plan again and again until every possible disaster has been factored and evidenced in your submission.

Get a friend to play devils advocate and ask you questions and rehearse like you are interviewing for a job, the banks advisor's will be charm personified but at the end of the day they make hard nosed business decisions based on facts.

In my experience Nat West were difficult with EFG, Barclays were great, but then I've heard great things about Yorkshire Bank and Co-operative Bank so if Nat West dont run with it step back and assess where your next move should be to avoid the rejection spiral, and above all Good Luck, Hope it goes well for you.

cwrtcoed

I aprreciate that no business is guaranteed to make a profit, i suppose because we know that other companies we know and a personal friend has already set one up in england and they are making a very good profit within 12 months it just gives that confidence it will do well. I'm just a bit concerend regarding the first 6 months on our business plan will actually make a loss due to paying office rental, datatbase etc until we actually get personel onboard, would it frighten the bank looking at this or would they look at it over long term profits? i just want the plan to be realistic and not !!!!!!!! that it will make loads when first setting up because it wont.

ian_h

cwrtcoed wrote: »

I aprreciate that no business is guaranteed to make a profit, i suppose because we know that other companies we know and a personal friend has already set one up in england and they are making a very good profit within 12 months it just gives that confidence it will do well. I'm just a bit concerend regarding the first 6 months on our business plan will actually make a loss due to paying office rental, datatbase etc until we actually get personel onboard, would it frighten the bank looking at this or would they look at it over long term profits? i just want the plan to be realistic and not !!!!!!!! that it will make loads when first setting up because it wont.

No it wont frighten them it will show you are being realistic, make sure your cashflow projection (arguably the most important of all) clearly demonstrates how you will get through this period.

Just beware of the "other people are doing well" claim, just because they are there is no given right that you will (as you know) , make sure you demonstrate that you have identified areas in their business model that work well and explain what if anything you will be doing differently, how you will promote your business, ideally include your marketing plan and details of any techniques you will be employing to generate a buzz around your business.

By all means use a comparison to a successful competitor (albeit in a different geographic location) but if you are doing this you must also demonstrate a deep understanding of their business model and be able to identify what they are good at and where they could do better - and explain how you will avoid this weakness.

I run a business that develops, mentors and supports small businesses - if you want to look at any specifics feel free to PM me.

cwrtcoed

ok thanks, lets cross fingers and i will let you know how it goes tomorrow

ian_h

cwrtcoed wrote: »

ok thanks, lets cross fingers and i will let you know how it goes tomorrow

Good Luck, confidence counts for a lot - knock em dead look forward to an update :beer:

cwrtcoed

well what a c**k up today, me and the wife went down to nat west and they have not got any record of an appointment, this is what happens when it goes through to those foreign call centres.
Anyhow i spoke to the business advisor over the phone ( in the foyer) so it wasnt the best of places to speak due to customers waiting at the counter. And he asked me if i was going to be a soletrader or ltd company. I said it probably will be a ltd company, he advised me to register the business with companies house first then he can have a look at the plan??? I'm totally confused, why would i first fork out cash to register a business if i cant get the funding, best practise would be to see if i can get the help first then register??
Anyway i spoke to the mortgage advisor and hopefully borrow extra on top of my home, plus what i have saved and may use my credit cards to get the business under way, just waiting for the mortgage advisor to get back to me hopefully this will be better option.
keep you updated

jonesMUFCforever

If you are going to be Limited company then you NEED to register the company - if you are not sure about this your whole plan will faill like a pack of card.

cwrtcoed

so what your saying, if im thinking of setting up a ltd company and have a business plan together, i need to register it first before i see the bank to get funding?? The last one i spoke to didnt even ask that, just looked at the plan and advised.