Business loan advice wanted

feygan

Ok so here is my situation. I am a little over a week away from being self employed through a scheme with the job center called "steps to work".

This is a 26 week programme during which I still keep my usual benefits and also work as much as I want to build up a successful business. During this Time all money made by the business stays within the business and I do not draw anything beyond essentials like work clothing and meals for lunch.

I am going into a field of business I know alot about and have work in before so am well aware of all requirements, however I will be needing a small loan for some start up essentials. I was intending on using my own vehicle until I had built up enough cashflow to buy a small van however over the past month I have noticed that my car is unlikely to be fit for purpose, as it is a small 18 year old hatchback that struggles with anything beyond a driver and passenger.

With this in mind I spoke with the people running the scheme who informed me that my first course is to ask the bank my business account is with after they have a fall back scheme for assisting start ups.

I know I have a bad personal credit rating due to poorly managed finaces and cards in my early 20's, as such think a loan from the bank is unlikely. What I am unsure about is will it make any real difference going into the bank in person with my projections and business plan etc or will filling out the application online give me exactly the same result?

My business requires a vehicle and cannot operate without one, so if I am going to get a yes/no answer just as likely with each option id rather spend 10 minutes at home so if turned down I can move towards the other lending scheme rather than sit about waiting for meeting times and letters when I could be out working.

Janie4Now

I would always go to the bank in person if possible. Whilst all banks have their overall lending criteria, there is always a little leeway at branch level and it can never hurt for them to see the whites of your eyes!

Having said that, borrowing is really tough right now and you may find that you simply don't meet the criteria....but go in there, be positive and see what happens!

DCFC79

Definitely try your own bank, go in with the plan etc and you never know what the outcome will be.

samm22

Why won't they just look at the merits of my business and not focus so much on my personal credit as it is my business that will be paying the loan back!" My answer is always the same:
1) That is how the financial markets work, and
2) If you want to get approved based solely on the merits of your business then find the right business loan that focuses only on the merits of your business.


Thanks

jonesMUFCforever

Let's be realistic here - OP is trying to run before walking - he has a vehicle - use it and do not get into any debt in case things do not work out.
IMO no bank will lend OP the money as he has no track record but more importantly he has no money of his own to put in. The bank will be taking all the risk.