Loans for small business advice

mcclunyboy

Hi,

What are my options for loans for small business?

1 - Business Loan - my potential partner was rejected this so I am not confident in applyin under my name.
2 - Personal loan - but if the bank found out could they demand instant repayment?

Basically I want to know if it is worth starting the business as Ltd Company and applying for the loan via myself who has a credit score of 970 (my partners was 917 but has a higher amount of available credit (and a higher % of it usesd)).

Not sure I am comfortable with any other options, credit cards, finance companies - unless someone can recommend one?

dealer_wins

A good business plan and a 50% or higher deposit would give you a good chance of acceptance.

mcclunyboy

Yes we know, we have worked hard on the business plan and we believe it is quite good. Certainly had complements from people we have been receiving advice from and made the amendments the bank asked for.

We are also able to provide 50% of the capital we are hoping to raise...

I believe the bank rejected the partner specifically due to their credit rating (917 but with high % of credit used as we have already bought certain things for the business - perhaps that was a mistake.)

So I assume the best option is to try and get another business loan from another location ?

sharp82

Only 'quite a good business plan'?

Doubt the bank will lend on quite good

mcclunyboy

I was being modest :money:

I am wondering, is it possible for me to apply for a loan on behalf of the business owner. I trust him and know he will be good on his word to repay it.

I am aware a personal loan can be used only for it's intended purpose but my father-in-law took out a loan for me a few years back and I bought a car with it - repayments etc are fine (ongoing unfortunately) but as he took it out behalf of me I am wondering if I can do the same for the business owner?

mcclunyboy

Decided on a plan of action, I refused to take a personal loan to help with his business (in effect investing in a % of it). Instead I have advised that he should try and apply for another loan, this time asking for only 25% of the required investment as he has found the other 75%...hopefully the bank can look on that more favourably....is that good advice or is it worthless now he has been rejected for a loan already (asking for 50% of the necessary money).

chalkie99

mcclunyboy wrote: »

Decided on a plan of action, I refused to take a personal loan to help with his business (in effect investing in a % of it). Instead I have advised that he should try and apply for another loan, this time asking for only 25% of the required investment as he has found the other 75%...hopefully the bank can look on that more favourably....is that good advice or is it worthless now he has been rejected for a loan already (asking for 50% of the necessary money).

I'm a bit confused.

From your original post it looked, to me, that you were in a business partnership. Now you refer to "his business" and seem to be saying that he is arranging all the finance.

So, this is entirely a business you are not going to own?