alternatives to business loans? wonga for business, capexpand, market invoice, borro

RocknRolla_2

Hi guys hope this is the right place. We’ve been trading for just over a year and looking to take the business up a notch. Tried the bank but not been in business for long enough – not looking for a huge loan about 10k for new stock. Has anyone any experience of wonga for business do they accept ebay businesses? There seems to be online focused lenders like capexpand or pawn brokers like borro – not sure we have anything to pawn worth 10k!

motorguy

what about a personal loan?

Wywth

RocknRolla wrote: »

Hi guys hope this is the right place. We’ve been trading for just over a year and looking to take the business up a notch. Tried the bank but not been in business for long enough – not looking for a huge loan about 10k for new stock. Has anyone any experience of wonga for business do they accept ebay businesses? There seems to be online focused lenders like capexpand or pawn brokers like borro – not sure we have anything to pawn worth 10k!

According to their website, Wonga only lend up to £1000 (and just £400 max if you are a new customer)
They offer short term loans which are intended to be repaid within 28 days.

Do you really think that appropriate? You have to purchase the stock, wait for delivery, advertise it, sell it, wait for customer to pay ... and then if you are lucky transfer the money from your paypal account back to your bank account before you can repay the lender.

Even if that is doable, bearing in mind, a loan of £400 is going to cost you £117.48 extra over 28 days, a cost that you will have to reflect in your wished for selling price,
I can't help thinking you are getting into the realms of fantasy here. :cool:

Earn yourself a few bucks first flipping burgers for MaccyD and use that money to buy stock with if you want to try self employment.

custardy

Wywth wrote: »

According to their website, Wonga only lend up to £1000 (and just £400 max if you are a new customer)
They offer short term loans which are intended to be repaid within 28 days.

Do you really think that appropriate? You have to purchase the stock, wait for delivery, advertise it, sell it, wait for customer to pay ... and then if you are lucky transfer the money from your paypal account back to your bank account before you can repay the lender.

Even if that is doable, bearing in mind, a loan of £400 is going to cost you £117.48 extra over 28 days, a cost that you will have to reflect in your wished for selling price,
I can't help thinking you are getting into the realms of fantasy here. :cool:

Earn yourself a few bucks first flipping burgers for MaccyD and use that money to buy stock with if you want to try self employment.

The OP said Wonga business
they seem to offer a basic limit of £15K
with an option for more

nomunnofun

wongabusiness lend up to £15000 over one year - AER 26%.

http://www.wongabusiness.com/how-it-works

A client of mine had the same suggestion last week - I hope that he did not avail of it - I suppose I will find out sooner or later.

RocknRolla_2

Thanks for the responses..

paddyrg

I'd come at this the other way round...

If you're looking to borrow 10k, your turnover must be pretty tasty, and you must be hitting up suppliers regularly. How about seeing if you can get 30-day terms with a supplier instead? Or even 50% down, 50% in 30-days?

Borrowing cash for stock is a bit of a risk as you can end up continually paying interest out of profits for slow-moving lines, and the interest on £10k at 26% isn't to be sneezed at ;-)

Alternatively, how about seeking a silent partner who'll front stock costs for you in return for shares? If you're doing good volume, you'll find someone I'm sure.

lolavix

Have you looked at local schemes and enterprise agencies?

I don't know your location but I know there are many around London who lend to start up and smaller businesses who struggle to get finance from banks.

COOLTRIKERCHICK

I am suprised the bank will not lend you money,, as they tend to ask you to be personal guarentor to the loan.

If your business was a good viable one, which has a healthly 'regular' cashflow etc, then it should have been ok.

Unless the bank can see the monthly repayments are going to add an extra burden on your business, which he feels the business could struggle with.

What ever you do DONT go down the wonga road for a loan.... struggle and see if you can come to some other arrangements as an above poster has mentioned..

could you have a smaller amount of stock? 5k worth? as maybe the bank will lend you that amount

[Deleted User]

Can anyone tell me how Wonga get their money back.

If they only apply liability to the business, i.e. Limited Company.

Don't people just not pay it back? doing as many do with Limited Companies and the Limited Liability of Directors.

Seems a bit strange that they don't do the checks that one would expect.

COOLTRIKERCHICK

assj wrote: »

Can anyone tell me how Wonga get their money back.

If they only apply liability to the business, i.e. Limited Company.

Don't people just not pay it back? doing as many do with Limited Companies and the Limited Liability of Directors.

Seems a bit strange that they don't do the checks that one would expect.

there is prob something in the VERY small print that whoever organises the loan is personally liable for the loan

When ever we have had loans for my ltd company i am a personal gaurentor for the loan. which I personally agree with, as why should the banks take all the risk in lending you the money, and you can walk away without paying back anything...