Loans

Loans

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URGENT loan needed! Please Help!

Hi, I need your advice

I am 20 years old, 8 months ago I moved in with my boyfriend and his family 300 miles away from where I have lived all my life.

We brought a static caravan to live in about 5 months ago which my brother got the loan for as I hadn't been with my current company that long (due to the move).

Myself and my partner have recently started a business (1st April) as he was being made redundant (boss retiring and shutting the business down). We have been given all the clients / business stuff which is great. We wanted to get a loan but got advised by the bank to go for an overdraft - opened the account with Lloyds TSB and all was hunky dory

So far things were being paid for out of my limited funds in my personal account, and used the tiny bit of redundancy money my partner got.

About a week and a half ago Lloyds nicely told us as policy they wont offer any overdrafts to businesses that have been banking with them for less than 6 months! We started immediately looking for loans but with little success

1) Getting a business loan is hard unless you are buying equipment or the building which we are doing neither
2) Neither of us own our own property
3) I am only 20 so rules me out for a lot of loan companies
4) My fella is under financial management so he can not get loans
5) The families are ruled out as money isnt great for them either
6) I have never had a credit card / loan before (only an overdraft)
7) My bank who I have been with them for 7+ years wont help as my overdraft has been in a bad condition the last month or so due to starting the business

I can not find a loan, I have cheques bouncing, no money to pay my partner who is an employee (because of his creditors) , we have done work and waiting to get paid but that wont be until the end of the month, beginning of next and I dont know what to do :cry:

I am scared, I am worried, I keep getting panic attacks, I need help

There has only been 1 company that will offer me a loan - Welcome Finance with an apr about 50% which at the moment I am tempted to take!

Because of the business started I have had a lot of credit checks done recently which doesnt help

I just dont know what to do, I am hating this as I am being punished for not borrowing money in the past and getting myself in debt

I am stating that the loan is for the caravan which is will be in a month or two, just while the business stuff gets sorted

Please please help!! :cry:

(p.s. to make matters worse its my partners birthday on Friday - although he doesnt want anything its his first bday with us being together so wanted it to be special)

Comments

  • Posts: 3,850 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Kitty,

    Feel very sorry for you but not sure a loan is the answer - particularly one at 50% apr which I'm sure will have a sting in it.

    Have you approached social services or your local business link to see whether your business is entitled to any grants, assistance or loan guarantees?

    If the business is profitable, presumably things will improve fairly quickly so you don't want to be burdened with a big loan that will eat all your profits and mean all your efforts are going to pay Welcome rather than yourselves.

    As for the birthday, how about delaying it until these invoices get paid rather than getting yourself in deeper?

    Would the bank consider loaning against the strength of the invoices that haven't been paid? Similarly would some of your customers pay your earlier in return for say a 1% discount and solve your current problem?

    R
    Smile :), it makes people wonder what you have been up to.
  • Thanks for your response Rafter

    Well..for the birthday I'm going to make a card for him on the computer, he isn't a material person just a shame I can't do more.

    I am applying for a small loan (£1000ish) at the moment, Women In Business I think its called (designed for SW people), but there is little out there unfortunately for general running costs.

    there is also a Small Business Loan Guarantee which Lloyds TSB are a lender for - we are going to approach them just not sure if they will help. plus we need to put up 25% of the money, so unless we can find another source of money we arent going to be able to do it (hopefully this is where the above grant will come into effect)

    I do agree with you, the business already has covered its 'monthly' costs in the first month, just not the start up costs (approx £700 in total) which is where our problem shortfall is. Hopefully as things progress we will be making a good amount of profit to cover us for the quieter periods (June - August)

    As for the invoices, not thought of that, could try but they seemed pretty adamant that they don't want to give us anything at the moment. My own damn fault as I never shopped around for a business bank, just chose the first one I found (I have a full time job as well as the business so time off has been difficult to go to banks etc).

    At the moment everything is a time issue, we need the money asap so we can continue putting food on the table, and some of these things might take a while.

    My brother has been great and lend us a credit card to use for the cheques that have bounced, but once again without funding in the bank in a months time to pay off the debts then we are going to be in a worse off situation.

    I am very scared about applying for a credit card as I have had so many difficulties in getting a loan I am not sure if I will be excepted or not for a card? I cant risk any more "no's"

    Unfortunately the invoices to the customers cant be paid much quicker, we do work for multi million pound yatchs who hate their payment systems disturbed and all these are abroad so going to take a good few days to get to us anyway

    I have asked my partner if on our next job where we are going to have to buy a product up front to ask the customer to pay up front too so we aren't burdened with the costs
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