Start up Business Finance help!

Sunny29

I'm sure there are lots of questions like this. I need £15,000 to set up my business. I have my business plan and thought everything was in place until i called the bank today. I called Natwest (not my personal bank) and they said they would only consider lending me 50% if I could raise the other 50% first. I do not have £7,500 spare. My boyfriend (of 14 years) and i want to set up a partnership retailing ex-catalogue goods. My partner has been a househusband for the last 6 years being unable to get a job. Even in the last two years he has only been able to get part-time temp work through recruitment agencies. we are living on the breadline and we are doing this to better ourselves and so that he doesnt have to stay at home anymore waiting for the phone to ring for a job. Hence we do not have £7,500 lying around. I have pruned the finances so that all i am asking for is the absolute bare minimum to get up and running. I will remain in full-time employment until the business starts showing a profit (a modest one in year 2), to continue to support our household as i have been doing all this time. We have a good idea, good contacts and now we have hit a brick wall. We have been very excited whilst doing the plan (which has taken some time) but after one phonecall our dreams are shattered. I feel helpless. Is there any other way to turn?

Lokolo

6 years without being able to find a job? .... Really?

Acc72

Hi,

I am surprised that the bank has offered to lend you 50% - is this secured on any asset (i.e. your home ?).

Your finances look very tight as they are without taking on this debt.

Also, you say that you would continue to work full time whilst your husband runs the business?

As your husband has been unemployed for 6 years, would he be able to do this ? - do either of you have any experience of running a business ?

The most sensible advice would be for your husband to get a job and for the both of you to save as much money as possible over the next couple of years. During this time if you continue to research your business area you will then be better placed to make a move.


Sorry to be so negative

Sunny29

No sorry typo... should read 3. He had an accident at work in which he broke his hand. But the hospital didnt diagnose this for 3 months. by that time damage was done to the main nerve. He had to have an op and months of physio - not that this is anything to do with it.

Sunny29

Acc72 wrote: »

Hi,

I am surprised that the bank has offered to lend you 50% - is this secured on any asset (i.e. your home ?).

Your finances look very tight as they are without taking on this debt.

Also, you say that you would continue to work full time whilst your husband runs the business?

As your husband has been unemployed for 6 years, would he be able to do this ? - do either of you have any experience of running a business ?

The most sensible advice would be for your husband to get a job and for the both of you to save as much money as possible over the next couple of years. During this time if you continue to research your business area you will then be better placed to make a move.


Sorry to be so negative

No they would only consider it if i would raise the money - that does not say to me that that it is definate.

Typo 3 years unemployed due to accident -see previous post by me.

He does have experience in the field. My partner used to work at such company before his accident. They closed down due to a falling out - so he couldnt go back to work there when he was better.

stephenni1971

Did you seriously think that you would just phone the bank and they would give you £15,000 on a new startup with no capital of your own?

Sorry but I think being naive to this level shows a lack of basic business sense and maybe you should take the advice above, get OH a job and save.

Then you can risk 100% of your own money and take 100% of the reward if it is as good an opportunity as you say.

Sunny29

stephenni1971 wrote: »

Did you seriously think that you would just phone the bank and they would give you £15,000 on a new startup with no capital of your own?

Sorry but I think being naive to this level shows a lack of basic business sense and maybe you should take the advice above, get OH a job and save.

Then you can risk 100% of your own money and take 100% of the reward if it is as good an opportunity as you say.

Well everyone has to start somewhere!!! and i called Natwest's start-up Hotline to ask for advice - not to apply for a loan.

OH has been trying to get job. Come September he will back in warehouses for the 'christmas rush'. He will last til end of Feb if he's lucky. Its pretty hard to save when he is only get a week's work here and there since Feb this year.

I come on here to ask for advice, other organisations to turn to, grants maybe and all i get is a load of condescending, holier than thou repsonses.

Please dont anyone else respond because I wont be coming back on here. Thanks everyone for your 'comments'

steve1980

Truth obviously hurts!

hermum

Can't he get the money together to buy a small amount of cat returns to start with, if it goes well then build the business up?

paulwf

Sunny29 wrote: »

I come on here to ask for advice, other organisations to turn to, grants maybe

Sunny I know this isn't what you want to hear but your current business plan just isn't going to happen. In the current climate no one is going to give you a 100% loan, especially for £15K and presumably without security. It doesn't matter how good your business plan is, that's just the way it is.

Put yourself in the shoes of a lender. Unless you are personally going to put in a significant stake they will be concerned you don't have a strong enough personal commitment to make it work. You have to show them some money so they know you are serious and not going to drop the project if it gets tough. You also need some money to do the initial stages before you are in the stage to formally apply for the loan.

If you really want this to work either find a way to start up with little capital or look on it as a long term project and work out how to save some money over time. If you are both talented enough to run this business you will get there. Good luck.

motorguy

Sunny29 wrote: »

I'm sure there are lots of questions like this. I need £15,000 to set up my business. I have my business plan and thought everything was in place until i called the bank today. I called Natwest (not my personal bank) and they said they would only consider lending me 50% if I could raise the other 50% first. I do not have £7,500 spare. My boyfriend (of 14 years) and i want to set up a partnership retailing ex-catalogue goods. My partner has been a househusband for the last 6 years being unable to get a job. Even in the last two years he has only been able to get part-time temp work through recruitment agencies. we are living on the breadline and we are doing this to better ourselves and so that he doesnt have to stay at home anymore waiting for the phone to ring for a job. Hence we do not have £7,500 lying around. I have pruned the finances so that all i am asking for is the absolute bare minimum to get up and running. I will remain in full-time employment until the business starts showing a profit (a modest one in year 2), to continue to support our household as i have been doing all this time. We have a good idea, good contacts and now we have hit a brick wall. We have been very excited whilst doing the plan (which has taken some time) but after one phonecall our dreams are shattered. I feel helpless. Is there any other way to turn?

Why £15,000? Why not use what money you have to buy ex catalogue goods and resell them via an ebay store or at a local market?