Best chance of getting a loan, six years on from bankruptcy?

Emmzi

nothingsimpossible wrote: »

As yet, noone has actually answered my question, which was, "Which bank or institution, or provider, is the most likely to grant a higher risk loan?"

As a former business lending manager I would say none. I would never take a bigger risk than my customer was prepared to, and you're not putting up security.

Do feel free to be equaly curt again though. I just can't see how anyone can give you the answer you want.

Emmzi

PS if you mean stock as in "stock and shares" why does it take more than a week to get the cash in? I don't believe it does for normal investments.

nothingsimpossible

Physical stock - ready to fill larger premises with? Tied up cash. How about easystepfinance.com .... Is that a scam, or is it a
loan with enormous interest rate?
What's required here is a lender who can see the risk, but also the potential reward - who has vision beyond lending formulas! The business accounts have been run impeccably, so I think I'll just have a casual chat with my bank manager first, and see what they have to say, since they already have a clearer picture of the business than I can paint on this forum. I was hoping for tips so that I might have a back-up plan, that's all.
Thanks for your straight talking, I like that. Given your background I am sure you are right ... but nothing's impossible!

Tixy

In the current economic climate lenders are going for as low risk as they can. I cannot see any high street lenders would consider an £11k loan to you at the moment.

Steer well clear of online loan brokers and companies you've never heard of, essentially they are either scammers or brokers, both of which will aim to get your debit card details from you.

If you want someone who will look beyond the simple risk of you potentially defaulting on the loan then perhaps consider a business angel investor who has more to gain than a commercial lender. A commercial lenders only 'reward' is that you pay back on time at the rate offered - and they can find lower risks to lend to in the current climate.

What is the £11k for? mostly a lease? have you found a premises? have you discussed negotiating a rent free period for a few months? different ways of structuring the payment so that you don't need a large sum up front?

Emmzi

I aree with Tixy. Seed capitalist, or a business partner. Risk is different if you have a stake in the business.

nothingsimpossible

Tixy, thanks, great points. Yes, the money was for a lease, for the first 6 months+. I'm a bit ahead of myself because although I've seen the 'perfect' premises come up, I haven't arranged the viewing yet - hope to tomorrow, and have been in touch with agency. There is possibly a personal/business connection there too, in relation to the agency, which may mean I can indeed negotiate terms - payment holiday etc. By posting on this forum tonight I was just trying to get a sense of what, if any, my options might be with regard to raising finance. I thought that perhaps a bank etc might be prepared to take the risk if the interest payments were high enough for them (of course, if debtor fails to pay it's irrelevant what percentage the loan is granted at - but at least if the debtor does pay then they will make a better profit).
Who are these "business angels" then?!
If the landlord of the property were willing to wait six months for his first payment, I wouldn't need the loan at all and would be turning over enough to make the payments. This is probably the route to go, if I can convince the landlord etc. I could put a deposit down of £2,000 - that's all I have currently.
Thanks for your advice :-)

Tixy

nothingsimpossible wrote: »

Who are these "business angels" then?!

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1087197738

lucy03

Tixy wrote: »

In the current economic climate lenders are going for as low risk as they can. I cannot see any high street lenders would consider an £11k loan to you at the moment.

Steer well clear of online loan brokers and companies you've never heard of, essentially they are either scammers or brokers, both of which will aim to get your debit card details from you.

If you want someone who will look beyond the simple risk of you potentially defaulting on the loan then perhaps consider a business angel investor who has more to gain than a commercial lender. A commercial lenders only 'reward' is that you pay back on time at the rate offered - and they can find lower risks to lend to in the current climate.

What is the £11k for? mostly a lease? have you found a premises? have you discussed negotiating a rent free period for a few months? different ways of structuring the payment so that you don't need a large sum up front?

I'd agree with the person who said that the credit score isn't always entirely relevant. My brother-in-law was given a business loan of 30,000 pounds by Barclays the week after his early bankruptcy was confirmed by the Official Receivers, although he had a very long history with the bank, and they entirely ignored his credit score in making the decision (and he repaid the loan early, so everyone was happy).

It's definitely worth a go speaking to the bank, because I do know that at least a few business managers will go out of their way to present other options to customers where they think the business is viable (even if they can't lend themselves). If not, try Business Link as suggested above.