Where is the best place for me to get a loan?

garysumpter

Hi all,

I have had a GREAT business opportunity come up, a ready made business doing something I love.

The business is being sold for £15,000 including everything, so I want to apply for an £18,000 loan.

The business is a reptile / aquarium shop in a very busy shopping town that doesnt have any other pet shops that sell live animals. Its a potential goldmine.

In my credit history I had one agreement default (NOT my fault but I know that doesnt count).

The thing is I KNOW i can make this work very well as i have a LOT of reptile / fish experience and I am a website designer by trade so I can also build a supporting online shop too!

Can any of you recommend somewhere to apply for the loan? I REALLY want this to happen. Should I speak to a business advisor about writing a business plan application?

Many Thanks

Gary

Rafter

Gary,

On the strength of the current business performance and accounts and your own experience, then a business loan should be possible.

However a bank will be looking for some sort of security - probably a charge over the equity in your own home.

If you don't own your house or have any assets you can contribute, it is highly unlikely you will be able to raise the funds unless you can take out a personal loan on the strength of your current salary and income.

You could look to see whether any grants are available to assist you, but as it is an existing business you are less likely to qualify for a job creation grant or startup assistance.

You could see if you can find a 'business angel' or investor prepared to provide you with some of the capital in return for a share of profits or a decent return on their investmetn.

I suggest you find your local business link or chamber of commerce and see what advice and assistance they can offer too.

Good luck.

R.

garysumpter

Thanks for the reply.

I am not a homeowner and my salary is VERY low.

SURELY someone out there must give people a break?

Gary

Rafter

Gary,

Understand where you are coming from, but if you had £18k spare would you lend it to a friend with no previous retail experience on the strength of the stock and lease on the shop?

If so, would you expect a big share of profits or a high interest rate?

However if the friend was prepared to sell his house to pay you back if things didn't work out would you then feel more secure that your money would be repaid?

That is your problem unfortunately. You might be able to raise a small amount based on the value of the lease and stock, but any more and you are going to need an investor or security.

R.

garysumpter

I am going there tomorrow. It seems it is steady, the monthly overheads including one persons wages are covered, but there is a LOT more potential that they arent realising!

It is a reptile and quatics shop, I am very experienced in reptiles and poets in general. It is the only shop in the area to sell live animals and the only aquatics shop anywhere near has just closed and all their custom have mpoved to this new shop.

There is a lot of room to add in new animals (more conventional pets).

Gary