New Enterprise Allowance scheme - My story

TrueBlue1965

Stevenb wrote: »

Can you not read, the guy has a family to fund, a newborn on the way and living expenses to pay and he is delaying expanding until next year.

Only an idiot would risk everything a few months from having a new baby, he is being responsible and looking after his family I respect that , so back of with the advice I think he has it covered.

Get off your high horse, stevenb. Im not telling Andy2013 what to do. He is more than able to make his own mind up without you answering on his behalf.

What I have suggested is that there are high risks in business and there are low risks if managed carefully in business. These include taking out loans to grow your business. Some of those on NEA dont have any choice other than to get a loan. Without the loan. They dont have a business. So, how do you expect most new business without capital to survive and grow? You had 10k to play around with and struggled for a long time to make a living. You claim to be making very good money now.Your a bit of a controdiction in your views.

Final question for now, stevenb. You say that you started you business 4 years ago and you were on the enterprise allowence? So, you where not on NEA? Is that correct?

tomterm8

TrueBlue1965 wrote: »

These include taking out loans to grow your business.

I see taking out a loan to grow your business as a less risky proposition than taking out a loan to start a business.

In fact, there are scenarios where not taking out the loan is more risky than taking out the loan.

But, you won't convince me that if someone is on JSA and can't find a job, who hasn't run a business before, with a business idea that is untested isn't taking a very large risk by choosing a business idea that requires a loan on start up.

dktreesea

tomterm8 wrote: »

I see taking out a loan to grow your business as a less risky proposition than taking out a loan to start a business.

In fact, there are scenarios where not taking out the loan is more risky than taking out the loan.

But, you won't convince me that if someone is on JSA and can't find a job, who hasn't run a business before, with a business idea that is untested isn't taking a very large risk by choosing a business idea that requires a loan on start up.

I agree. Getting a loan for an existing business to expand, one that is already showing a stream of revenue into the bank, is probably going to be far easier, and at a cheaper rate, then getting finance to start up the business.

But maybe that's a reason to take the finance on offer to people like TrueBlue, - it could be the only chance people have of owning their own business, keeping in mind NEA people are usually those who have been on the dole for a while, probably have very low funds and are unable to find paid employment.

Andy2013

But, you won't convince me that if someone is on JSA and can't find a job, who hasn't run a business before, with a business idea that is untested isn't taking a very large risk by choosing a business idea that requires a loan on start up.

Even getting a bank account can be hard for those long term on JSA especially if they have bad credit

Stevenb

Final question for now, stevenb. You say that you started you business 4 years ago and you were on the enterprise allowence? So, you where not on NEA? Is that correct?

Where did you get the 4 years from ?????????

Another fabrication TrueBlue1965

dktreesea

Andy2013 wrote: »

Even getting a bank account can be hard for those long term on JSA especially if they have bad credit

I thought everyone had to be given at least a basic bank account, i.e. European Union diktat? http://europa.eu/rapid/press-release_STATEMENT-14-75_en.htm or isn't this in place yet?

TrueBlue1965

Stevenb wrote: »

Hello all been watching this link for sometime so thought I would jump in.

5/6/14 - Without profit, even a small one you can not grow the business and it would not be taken seriously by banks, I ended NEA last month and the bank want 6 more months of books before they will lend me what I need to grow , I make a profit and re-invest it but without more profit they don't want to risk the loan.


Without profit, even a small one you can not grow the business and it would not be taken seriously by banks, I ended NEA last month and the bank want 6 more months of books before they will lend me what I need to grow , I make a profit and re-invest it but without more profit they don't want to risk the loan.

I agree with your punt on the loan, people forget it needs paying back and that money has to come from somewhere , an extra £200 a month may only work out as the extra sales offered by the stock purchased via the loan equalling more work, more chances of issues and of course more tax to pay with little personal reward at the end.

Andy never a truer word spoken it , the loan issue is a worry because if you take out 2.5k with interest you could be paying back 3k over 3 years and I can guess a lot of people on nea don't even earn that much to pay it back, plus your lumbered with debt for ages.


Fully agree, borrowing is the lead to a fall , especially if its not directly for stock, borrowing for marketing purposes is a disaster, you never make it back regardless of your intentions and I think from my own experiences it should be avoided.

im at 3k tax or there abouts.

Fully agree, borrowing is the lead to a fall , especially if its not directly for stock, borrowing for marketing purposes is a disaster, you never make it back regardless of your intentions and I think from my own experiences it should be avoided.

Facebook . twitter etc are brilliant , my business is internet based and I made over 25 k profit in my first year of NEA utilising social media.

Afraid this is wrong TrueBlue1965 , I rent my home and have just been offered a considerable loan via a high street bank who have used my books to decide the finance so your info is totally incorrect.

And this is the best place to obtain new credit and finance to grow a business , banks are much happier to lend via a government backed scheme, I myself am talking to them about it.

12 months ago I was struggling and started watching this thread and his comments helped me to push and make the money I am today

My first 4 months were awful that's why I started watching this thread, to try to get inspiration , a loan would have given me nightmares .

When did you start NEA stevenb? Your views and claims change like the wind.

Your correct, dktreesea. Its been in place sinse this Conservative Government got into power. Before that, people with bad credit ratings could get basic bank accounts from the main banks or people could get pre-paid bank accounts to be able to pay with plastic, ect!

Stevenb

TrueBlue1965 I will ask again where is the figure 4 years , and no my opinions don't change , it thought you were a **** from day 1 .

I thought everyone had to be given at least a basic bank account, i.e. European Union diktat? http://europa.eu/rapid/press-release...T-14-75_en.htm or isn't this in place yet?

Basic bank accounts are widely available but a lot don't offer a debit card which is an issue when buying and selling.

Andy2013

Even getting a bank account can be hard for those long term on JSA especially if they have bad credit

Sorry I should have rephrased it, a business bank account is not easy to obtain, a basic account is not supposed to be used for business and if a bank find lots of transactions going into it that look business related then they get upset, I was caught out on that a year ago, a business account was harder to get and took quite a while to process .

TrueBlue1965

Based on your posts on this forum, stevenb. You started NEA in November/December 2013. Your business is 8/9 months old.

Your first 4 months were awful that's why you started watching this thread.

You claim that Facebook . twitter etc are brilliant , your business is internet based and you have made over 25 k profit in your first year of NEA utilising social media. With 3k tax or there abouts.

25k profit is some going by any standards for the first 8/9 months of trading stevenb. Especially when you admit that your first 4 months were awful.

As for loans. You claim to be against loans to grow a business. You fully agree with Andy2013, that borrowing is the lead to a fall.

You then state that the bank want 6 more months of books before they will lend you what you need to grow , You make a profit and re-invest it but without more profit so, they don't want to risk the loan.

You say - Andy never a truer word spoken it , the loan issue is a worry because if you take out 2.5k with interest you could be paying back 3k over 3 years and I can guess a lot of people on nea don't even earn that much to pay it back, plus your lumbered with debt for ages.

Strange that you agree with Andy2013 but clearly you have attempted to get a loan and you were knocked back! Very strange that you where knocked back if you have made £25k in profits in basically 4/5 months!

Then, you claim- And this is the best place to obtain new credit and finance to grow a business , banks are much happier to lend via a government backed scheme, I myself am talking to them about it. .

But what about this statement, stevenb? Some families live of credit and see no harm or risk but many get in trouble , others are a little old fashioned and are more analytical about paying them back and profit and lose.

You also say - I agree with your punt on the loan, people forget it needs paying back and that money has to come from somewhere , an extra £200 a month may only work out as the extra sales offered by the stock purchased via the loan equalling more work, more chances of issues and of course more tax to pay with little personal reward at the end.

Then - Afraid this is wrong TrueBlue1965 , I rent my home and have just been offered a considerable loan via a high street bank who have used my books to decide the finance so your info is totally incorrect.

They don't ask for security and are not interested in my own available fianc!s .

I have not accepted as yet as mentioned in previous posts but banks are lending money.

Not sure which newspaper your reading or where your info comes from but if your business is viable, profitable and well run then they will lend.

Im still classed as a start up in the eyes of the bank and my application was based on that .

Would you like me to continue, stevenb. You change like the wind to fit your next argument and you have had quite a few of those and they where not just with me!

You state about me that I have to put in your two penny at times making defamatory remarks about others. steenb, would you like me to copy and paste all the defamatory remarks you have used in a few short weeks of posting on this forum? There are quite a few and not just dircted towards me. Maybe it would be a good idea to delete a few of your commets to make your story fit.

Now, can we stop all this childish rubbish. We should be attempting to discuss NEA and thing relating to starting and running a new business.

We should all be able to respect each others opinions and experiences without it becoming a personal fight again.

Stevenb, pre-paided cards allow people to do everything that a normal credit card can do regarding buying and selling for example on-line. Paypal is another option and needed for someone selling on e-bay.

I agree with you Andy2013 regarding business bank accounts. My bank have one business bank account assistant and a 6 week waiting list to see his/her. That in the 5th biggest City in the UK and that for one of the biggest banks, amazing! I believe its much the same with most of the other main banks. I only move funds from my paypal account once or twice per/months to keep the transactions to a minimum. Any cash payments are banked once I have a substancial amount of cash stashed under my bed, lol. My business adviser is not happy about this and suggests that I get a second normal bank account to use for business. If they dont like it. Close it down and open another with a different bank. With the amount of banks available. While a pain openning and closing bank accounts. We are talking many years before my choice becomes limited re who I use to run my business with. I guess he has a point.