Small business loan - catering company

Fluffpuff

My partner would like to buy a catering trailer however it's just the initial finance thats stopping him from doing this.

Ideally we would need about £10000 but could easily set up with £5000 as we have the opportunity to buy a catering trailer from a friend and buy stock and equipment with our current wages.

What is the best way to go about this? I have applied with Lloyds online for £5000 but I very much doubt they will accept it.

My credit score is poor due to defaults (now settled) from 2009/2010. And my partners is the same. Although for the past 2 or 3 years we have kept all our credit agreements such as car finance, catalogue, credit cards, phone contracts up to date. Do they see this or do they just see a warning straight away without even looking into the credit report?

If we get knocked back I suppose all we can do is save for as long as we can.

Just wondered if anyone has any advice to offer to better our chances? Can you go in to see the bank manager and show them your business plan etc?

Our local chamber of commerce is no longer giving small grants and the princes trust doesn't cover our area either

iolanthe07

Can you go in to see the bank manager and show them your business plan etc?

Yes - a business loan would seem the best way to go for you. Your defaults will stay on your file for six years; you may have to pay a higher rate of interest because of these. The bank will see your past history as extra risk.

27col

I would have thought that any prospective lender would want to know what you were putting into the pot. They are hardly likely to put their money at risk if you have no money of your own invested in the scheme as well.

dertin03

I was thinking about taking at a wonga loan. But with personal loans I know they can't be trusted. Though it would appear as tempting.

DCFC79

dertin03 wrote: »

I was thinking about taking at a wonga loan. But with personal loans I know they can't be trusted. Though it would appear as tempting.

Is there a question there ?

Apples2

dertin03 wrote: »

I was thinking about taking at a wonga loan. But with personal loans I know they can't be trusted. Though it would appear as tempting.

Lets humour you for a while, I suspect you are simply posting with a different agenda in mind...

It isn't Wonga who can't be trusted, it is people like you who will borrow and not repay.

chesky

You should take legal advice regarding the business partnership between your partner and you. If your relationship fails, what happens if you've taken out a loan to invest in the business. That's assuming you get the loan which to be honest doesn't look terribly likely.

DCFC79

emilyjames wrote: »

With the change of technology everything is changing as easy availability of loans will guide to make your dream come true.

Come again

dealer_wins

DCFC79 wrote: »

Come again

Gotta be a spam bot, programmed to comment as best it can.

Still it proves we are still a little bit away from computers taking over the world Terminator style LOL

emilyjames

DCFC79 wrote: »

Come again

I m Here LOL......:j:money::T:A:beer::)

rabbit_burrow

Make sure your business plan is solid and it'll help with securing financing.

Otherwise, like you said, save hard for the rest, this will also give you time to plan the business really well.

Look at the statistics on sales for catering (especially vans) to give you a good idea of the viability of the business.