New business Funding

abbb2011

I am starting up a business and need about £100K to do so. I am currently considering my best options for raising the funds. I have a property which is let to tenants on which the mortgage is fully paid off. Therefore I think the best way to raise the funds for the business is to get a mortgage on this property. However, I wondered if anyone would advise differently...would it be better to get a business loan for some or all of the money? I have a comprehensive business plan drawn up.

I think my best bet is to meet with the bank but thought I'd ask the question here anyway. The next decision is ...which bank???

Thanks

Savvy_Sue

Welcome.

I think if you look at other threads about loans to start new businesses, you'll find that you've got to have something to put into the pot yourself to have any chance of borrowing anything. So you're certainly in a stronger position than those who have nothing or next to nothing, given that you have a house you could mortgage. But how easy it would be to borrow £100K worth of mortgage in order to fund a new business, I couldn't say!

As for which bank, I'd phone a few and see what response you get.