Business loan/personal loan?

mstevo

hi, i have been offered a stake in the company i work for but am finding it very difficult to secure a loan as it is for a business, they say i need to take out a business loan thorugh business account but as i have not bought it yet this is very difficult. Has anyone had any experience of getting loans for this reason or have any tips/advice? much appreciated.

xyellowx

you will only get a business loan if you provide accounts/ business plan and probably still need a directors guarantor and would only get it if business is in good shape.

you could get a personal loan and use the money but would have to tell bank it was for a car (which comes under fraud)

are you sure the firm are not in a mess and trying to inject some capital via youself or worse still trying to get there money back through you what percentage are you buying into and how long as the business been active

Mark7799

I would advise that you don't think about investing any money into this business until you've seen their accounts to know how profitable they are. You may need to get professional advice on this (it will cost but could save you making a big mistake in the longer term) from an accountant.

mstevo

I have seen all the accounts and know exactly what i am going to be earning so know i can repay the loan, the company is 10 years old and showing further growth and not just doing it as need capital, basically offering it to me and one of current directors sons with in tention of handing over fully over time.

The banks I have spoken to just say no as dont do business loans, how do i go about approaching them and proving accounts good, no one asked me about this yet?

xyellowx

you want to buy a stake in a business and think you can do so by getting a business loan through the business your buying into?

what do the other directors think of this means of raising your funds?
if the company is in good shape why is a stake up for sale?
most banks have a business department and supply loans to right candidates if they are telling you no its for a reason.
accounts need to be seen by a good accountant and audited (not the current company accountant )

most people put house up or life saving up for capital if its bullet proof as you say go for it good luck

RichGold

mstevo wrote: »

The banks I have spoken to just say no as dont do business loans, how do i go about approaching them and proving accounts good, no one asked me about this yet?

If they haven't asked you for a business plan or accounts or any other details then you're either speaking to the wrong people, or you're speaking to the right people and they knew you had no chance so ushered you out the door quickly.

jonesMUFCforever

It is fairly straightforward to check the health of a company/business by looking at the capital account over say the last 3 years - is the capital balance higher now year on year?
Take it from there.

Unless you can raise capital other than through the business though it will be a non starter. Good luck.

Notmyrealname

mstevo wrote: »

I have seen all the accounts and know exactly what i am going to be earning so know i can repay the loan, the company is 10 years old and showing further growth and not just doing it as need capital

Oh. Dear. You're doing "makey uppey" appraisal trying to justify something you want to do rather than looking at it completely dispassionately with a business head on which involves massive doses of cynicism. You have to assess the business on its current state, not what it COULD be if you pumped a lump sum of cash. Damned near any business will show further projected growth if you pump a load of capital into it. However there is a world of difference between projected growth and the money coming in the door.

Who told you about the growth potential, the same people trying to palm it off?

are you sure the firm are not in a mess and trying to inject some capital via youself

Wouldn't be the first time this has been tried when the directors have run out of their line of credit. One guy I know propped up a failing IT business for 5 years doing this and leaving a long line of broke partners in his wake.