New Enterprise Allowance scheme - My story

D4VE

Chopperlamb : My next nightmare is sorting a business bank account to put the loan into as I have been turned down by everyone due to extremely poor credit rating...

I too, worried about this. A friend recommended Metrobank, so I visited them and explained what I intended doing etc. I did explain about my poor credit history and they checked that first. Said it seemed ok, so I went through the rest of the process with them. They then send off to their Business Account dept. Received a phone call the following day asking for a little more detail on my business. Fingers crossed, it will be accepted.

The loan can be paid into any account as far as I'm aware. In my case, I haven't got my business account setup so put my personal account details on the loan form.

To update on how my NEA is progressing :

11/4 - Set up Ltd company (received confirmation by email same day with Company Reg. No.).
Registered with HMRC - Need to wait for account details to be posted before being able to register for VAT/PAYE etc.
Purchased domain name. Set up twitter and facebook.
12/4 - Sent loan acceptance to NEA
14/4 - Signed off of JSA.
14/4 - Received email from NEA saying they'd received Loan docs.
15/4 - First day of trading - although I can't yet, until VAT & bank are sorted out, but can get everything prepared.

ray_sa

Hello

If you've been on the New Enterprise Allowance, and are based in London, I'd love to hear from you.

I'm currently doing a piece of work within a local political organisation on finding positive and innovative ways to help unemployed people into the business world.

I'm particularly interested in hearing about experiences with the quality of mentoring.

Just PM me or email on the address below.

Thanks very much

Ray
ray-sa@outlook.com[EMAIL="ray_sa@outlook.com"][/EMAIL]

chopperlamb

@D4VE I am really worried about HMRC because before my mental break down I used all my savings to start a venture that lasted 3 months and I lost everything. yet the tax man is still chasing me for tax returns.
the trouble I have is that when I had my mental health issues and was suicidal I burnt all of my personal paperwork as well as my self employment records, so cant complete what they are asking.

khany

Hi guys yesterday I got my business plan reply its been approved! Now I have just filled in the loan application form gona post it out tomorrow 1st class! I also called my mentor and asked about the duration of loan reply he said 14 days! Minus the weekends! So all in all fingrrs crossed! When do I sign off? This is where im stuck because the nea said they will inform jc that my business plan is approved! Do you get back to work bonus? Thankyou for all the advise and I appreciate any further advise and help as I dont wana look back on jsa! I want to stand in my feet and not fall back! I hate the feeling of going to jc to sign on!

D4VE

chopperlamb - @D4VE I am really worried about HMRC because before my mental break down I used all my savings to start a venture that lasted 3 months and I lost everything. yet the tax man is still chasing me for tax returns.
the trouble I have is that when I had my mental health issues and was suicidal I burnt all of my personal paperwork as well as my self employment records, so cant complete what they are asking.

Only a suggestion, but I'd concentrate on your new venture. Explain to them what happened etc. You should be able to get copies of some stuff like statements.

khany - I also called my mentor and asked about the duration of loan reply he said 14 days! Minus the weekends! So all in all fingrrs crossed! When do I sign off?

Mine was a lot quicker than that. I had to change my BP from Ltd Co to sole trader. Then give a different cashflow. Once they received these, I got an email the following day saying I'd been successful, so presume they'd been working with what they had while waiting for the revisions.

I signed off a week after my usual signing day, so had not long received my fortnights money and am (hopefully) due a further weeks money once they close my claim. Hopefully (again), I'll receive my first NEA payment (and loan) next week.

khany

On the loan application they say they do not carry out credit checks? What are the chances of being refused? Ive put alot of effort into my business plan and website etc. Am just worried!

chopperlamb

my business mentor also told me there would be no credit checks, that it was all down to how good your business plan is and your cash flow chart.

Andy2013

Maybe things are different know but when I applied for the loan in January 2013 there were credit checks because my initial application was refused due to a CCJ that had been paid but not removed from my account and as I did not disclose it ( as I thought it would have been removed) the application bounced , I explained this and was given a second chance to apply but actually refused when I looked into the costing's of the loan more carefully and decided not to take the loan but to reinvest my profits weekly instead, a decision I am really glad I made.

The application is not as tough as a standard bank loan app but honesty is the only policy as any undisclosed debts will cause you a problem.

But remember and I will say it again, BANKS DO LEND TO FIRST TIME BUSINESS OWNERS , regardless as to what the doubters may say, if your business plan is sturdy and your not trying to pull the wool over there eyes then most will at least listen to your idea, its there business to lend money and now they are starting to do so again.

You will get better rates and much more support, just an idea as to many NEA'ers sweat over this loan , you have options !!

treenie01

My loan wasn't that long. Think it took about a week.

When I applied for mine I asked about credit checks but I was told that because I'd been honest and said that I had a debt management plan there wasn't a problem.

pamm124

Hello everyone, just joining this thread as Im just in the process of applying for NEA, I had my first mentor meeting yesterday and Im now putting my plan together.
I havent applied for a loan (my other thread on here is repossession so credit really poor) but I was told by my mentor there is a credit check.
I have been on JSA three weeks, have to say I researched NEA and requested the meeting otherwise wouldnt have been suggested to me but once I asked I got a meeting booked straight away.
I have 2.5 days free training booked which I am so looking forward to meeting other people starting up.
Happy for anyone to message me in the same position to swap ideas and support, or could set up a closed FB group if anyone interested ?