Loan Advice

Apples2

DorsetRed wrote: »

My point about being attacked, is the tone and rhetoric nature of their posts.

It's a fair comment. My first reply was done on my Phone so was short. the second in front of a PC.

Your plan sounds a non starter so was hardly worth spending much time on. Leaving a debt to become Statute Barred hardly sends a good message out to potential creditors anyway. The debt does not simply disappear, it mearly means you cannot be taken to Court for it.
There is time yet for them to go to court and take out a CCJ against you.

DCFC79

Oh please pull the other 1, no attacking has taken place. Apples doesn't beat around the bush and gets to the point.

davids reply was helpful too but hey you cant please everyone.

DorsetRed

Apples2 wrote: »

Leaving a debt to become Statute Barred hardly sends a good message out to potential creditors anyway. The debt does not simply disappear, it mearly means you cannot be taken to Court for it.
There is time yet for them to go to court and take out a CCJ against you.

I appreciate that, but my point is that once it's dropped off my file, potential lenders won't be able to see it, surely? Or is that not the case then?

I do appreciate the points that are made, I just feel that people were being overly critical of my idea, rather than any suggestions as to how I could achieve it. But maybe that's not the point of the forum?

chalkie99

Regardless of the point of the forum, the result is often a cold dose of reality and, to be fair, you did state the loan was to start a new business. It is not until post #6 that you tell us it is actually for an extension to an existing and "successful" business.

Constructively then, if you have been trading successfully for four years you presumably have a business account at the bank and accounts to show your progress?

In that case your bank is the place to approach, they can see your account history.

However, most lenders would want to see a business plan with your total expected costs. Are you estimating that £4.000 is the total cost of setting up this shop?

If so, you are likely to be disappointed as they will expect you to be investing a good percentage from your own reserves, which you should already have accumulated if your trading has been as successful as you believe.

Additionally, are you sure you have calculated all of the costs involved?

Solicitors costs to go through the lease and stop you signing to clauses detrimental to you, explaining exactly what you are signing up to?

Surveyors report? Almost certainly needed if you are signing a standard "Repairing and Insuring lease"

In addition to 3 months rent in advance many landlords also require a similar amount for a bond.

Commercial Rates? - Might be subject to small business relief at the moment but needs checking.

Water and sewerage rates?

Refuse collection? - you need a contract - not included in your normal rates.

Heating and lighting? You will need a contract with an electricity supplier at least and. as a new customer, will probably have to pay a bond for this as well.

Customer Payments? - Customers expect to pay by card for most things so you will need a card terminal (monthly rental on contract). a merchant account from your bank (separate cost) and a telephone line to connect the terminal - hence you will need to pay a 'phone connection charge and, again, a bond as a new customer.

This is all adding up now and you will have little or nothing for stock whilst from Day One you will need to sell enough to replenish and build that stock, pay your weekly overheads, put aside the next 3 months rent and pay back the loan. Not to mention living costs.

Does it still sound a viable plan?

DorsetRed

I do have all of that information in the business plan already, and it's all accounted for. Most of this is things that are already in place or have been paid for, such as survey, solicitors fees and card terminal. And heating, light and water are inclusive in the rental cost. There is an element that myself and my partner are putting in, and the £4k is to make up the rest of that. We have partners commited to providing stock on a sale or return basis, so no huge amount of capital needed for that.

So based on the evidence, I agree that the bank is probably the best place to go first. That's the kind of help I was looking for?

This is my point about the point of the forum though, I came here for advice on how best to get a loan, not how to structure a business plan, or to be disected on why I wanted the loan?

chalkie99

Well.......

"How best to get a loan" is to go to the bank that holds your business account with a fully thought out business plan which includes all costs of set up and ongoing running of the business.

You will typically need around 50 per cent of the total costs from your own funds and, very possibly, security in the form of property or a guarantor, for the amount loaned.

No-one here knows you or anything about you so we are not sat here looking into crystal balls second guessing that you have whatever plans in place. The banks are not going to guess either. They will need to look at solid figures and hard facts.

That is the reason for ensuring you have thought through the process properly before you start a new thread saying "...... I applied for a loan and got turned down because.........."

Your response is somewhat ungrateful for what was a considered reply.

DorsetRed

Chalkie, I appreciate elements of your reply, I just feel that giving advice on the costs of running a business, seems off-topic, when that wasn't what I was looking for?

BugsyBrowne

DorsetRed wrote: »

Chalkie, I appreciate elements of your reply, I just feel that giving advice on the costs of running a business, seems off-topic, when that wasn't what I was looking for?

Also checkmyfile is hopeless, you need to check your report off the main credit refrencies that lenders actually use like Equifax & experian.

chalkie99

DorsetRed wrote: »

Chalkie, I appreciate elements of your reply, I just feel that giving advice on the costs of running a business, seems off-topic, when that wasn't what I was looking for?

You really are an expert at missing the point aren't you?

People here have tried to help you but all you can do is snipe at them.

You started off by saying you wanted to start a business with a 4k loan and gradually shifted the goalposts throughout the thread.

So, according to your latest revelations, you want a loan for finance a shop where you have already had a survey and paid for a solicitors, even though you don't know if you can get the loan you need.

To cap it all, you have funds to invest in it yourself but not, apparently, to settle a debt you have owed for 5.5 years on a store card. :T

JustinCredibleGillespie

Why would she bother to settle a debt thats 5.5 years old? :rotfl::rotfl::rotfl:

Get the 4k off the bank & if all goes belly up declare yourself Bankrupt. Too many people on 'this' forum seem to take the moral high ground.

The economy is shot to sh*t anyway.

Just wait the other 6 months OP and you can obtain as much credit as you like.

Hahahah! Happy Weekend!