Small Business Finance

Hi MSE world

I'm looking for some advice where to go for finance for my husbands existing small business (sole trader) to expand into new premises, upgrade equipment and have some working capital.

Currently he is working from a small garage with an approx monthly turnover of about £1500, but we draw pretty much all of the money made to live on, so have no cash to expand. We are at max capacity in his current premises, so have found somewhere to move to, but need cash to firstly pay rent deposit and purchase equipment needed to make the space workable (he is a car body sprayer so needs ventilation/spray booth etc), and some other smaller tools. Also some money for advertising to create a bigger customer base.

In total we are looking for around £5000, which we would want to pay over around 3-5 years. Where is the best place to get this sort of funding?
Mtg May 2011 - £127,500/825610% CC - £2211/2211Argos Card 0% - £253.95/208.95

Comments

  • Your bank (personal or business) would be a starting point. They'd likely expect you to stump something up and perhaps provide personal guarantees.
    Thinking critically since 1996....
  • paddyrg
    paddyrg Posts: 13,543 Forumite
    Do you have assets to the value of £5k+? Ask the bank if you can take a loan secured against them. If they won't, then you need a business partner/investor. I would suggest you get in another body sprayer who is in the same position wanting to expand but can't afford the kit, and between you create a company you both own and both work in as equals (otherwise it gets complicated)
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