Business loan for ebay

taralou

Hi
I hope someone can help. I have a shop on ebay which I have had on and off for a couple of years, and have also dabbled and been a member of ebay for over 8 years, however, for the last year have been very serious about it as am looking at it as more of full time business/ income.
I have poured money into it from advice often given on the forums by borrowing from family and credit cards (interest free). The business is now doing really well for the amount of stock I have, so know that with more stock I can up my takings. I have a very good reputation on ebay (power seller etc), 100% feedback and have worked hard to ensure a good customer service. :T
SOOO...... I now would like a business loan!!!
Is there any banks that would lend to me?
I am in the process of putting a business plan together and have kept very good accounts which are showing about 25/30% gross profit.
Do you think anyone would lend to me for this??
Many thanks in anticipation:j

Curr946

you may be able to get a loan as a self trader, but not sure the ins and outs.

property.advert

The fact that it is ebay is largely immaterial. The fact that you have no accounts and no historical figures of any note is highly pertinent. Essentially you are asking a lender to go out on a wing and a prayer for this and the only way they are going to do that is based on your credit rating.

Personally, if my credit was good enough to borrow the amount I wanted, I would tell them I wanted to buy double glazing or a new car or something, showing that you are also contributing. I would simply not mention the business at all.

Tixy

Are you registered as being in business with HMRC - have you been preparing accounts / a tax return and paying tax on the profits you have made for the last 8years? Or the years that you were trading?
If so and if your business plan and financial projections are good then you may get a business loan.

But depending on how much you want to borrow, and whether you are still employed / earning elsewhere with sufficent income compared to any personal debts, getting a personal loan might be easier.

paddyrg

Beware - a GP of 25% may mean a very narrow net profit once you take everything into account

somethingcorporate

+1 with Paddy - GP is largely irrelevant, the NP is the real profitability of a company. What are your NP margins?

pelirocco

Also , how much have you already borrowed and have you paid any of it back ? It doesnt always follow that the more you buy the more you can sell , be wary of holding too much stock

heathcote123

taralou wrote: »

Hi
I hope someone can help. I have a shop on ebay which I have had on and off for a couple of years, and have also dabbled and been a member of ebay for over 8 years, however, for the last year have been very serious about it as am looking at it as more of full time business/ income.
I have poured money into it from advice often given on the forums by borrowing from family and credit cards (interest free). The business is now doing really well for the amount of stock I have, so know that with more stock I can up my takings. I have a very good reputation on ebay (power seller etc), 100% feedback and have worked hard to ensure a good customer service. :T
SOOO...... I now would like a business loan!!!
Is there any banks that would lend to me?
I am in the process of putting a business plan together and have kept very good accounts which are showing about 25/30% gross profit.
Do you think anyone would lend to me for this??
Many thanks in anticipation:j

How much are you turning over?

Once you hit 75k in sales you'll need to absorb 20% vat from your profit margins. Which may make it a waste of time altogether.

taralou

Thanks for all the responses.
Property.advert - I have kept accounts for the last year.
Tixy - I am registered with HMRC and have my own accounts, no tax as not earning enough at the moment. I have not been trading as a shop for 8 years only a year.
Heathcote - nowhere near 75K (I wish!!) round about 7/8k per year from that approximately 25% is nett profit.
Pelirocco - I am paying back what I have borrowed

So would I be better to go for a personal loan.
My thinking is I would like to make this shop my main income and work at it full time as only evenings at the moment. I also would like to have my own website and some of the money would go towards advertising (Google etc) as well as upping the stock.

heathcote123

taralou wrote: »

Thanks for all the responses.

Heathcote - nowhere near 75K (I wish!!) round about 7/8k per year from that approximately 25% is nett profit.

Thats about £40 a week. How much time do you put into it? You mentioned you do evenings at it?

Do you have a job as well?

XXSCOTSLASSXX

taralou wrote: »

- I am registered with HMRC and have my own accounts, no tax as not earning enough at the moment. I have not been trading as a shop for 8 years only a year.
My thinking is I would like to make this shop my main income and work at it full time as only evenings at the moment. I also would like to have my own website and some of the money would go towards advertising (Google etc) as well as upping the stock.

Sorry, do you have a full time job at moment too then? if so id check with HMRC re tax.....