Can i borrow £100,000 by 4 loans of £25,000

chertseyboy

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[Deleted User]

You won't get 100k by any means unsecured, or without some kind of Dragons Den scenario. Not unless your income is around a quarter of a million.

gb12345

chertseyboy wrote: »

I am not going to secure my house against it

If you're not prepared to take a risk on the business, why should any lender?

Caz3121

What is your current income and debts. You should look at a debt to income ratio of approx 50%. So if you currently earn £40k and have current debt of £10k then you could possibly borrow £10k giving a total debt of £20k

Do you own a property? how much equity is in there, you could possibly look to remortgage and release some of the equity (again if your income permits)

With loans for a business the banks would expect you to be putting in at least 50% yourself, so if you need £100k and there is a good business plan then you put in £50k personally, they may consider £50k...but they are not going to take all the risk

imoneyop

You're likely to fail to even get offered a £25k loan unless you earn over £50k. You are also likely to have searches on your credit file from your failed applications to RBS, HSBC and Barclays, which will make you look desparate for credit and act as a further black mark for you.

chertseyboy wrote: »

If I make 4 simultaneousonline applications for £25,000 is that legal, ethical and likely to succeed. Or will I simply be turned down for a loan and torpedo my credit rating?

Unless you can simultaneously time your applications to the micro-second you won't fool anyone as each application will immediately put a search on your file, which will be flagged up to the other lenders (ignoring the fact that the applications will possibly be manually underwritten, so you have no control over when a credit check will be done).

Finally there is also the small matter of the reason for the loan - you can't get a personal loan for business purposes, so you would need to lie on the application, which would be fraud.

pjread

chertseyboy wrote: »

Hi I am new to this site!

I want to buy a business but have no money to do so. I have worked out that I could borrow the money and the business makes enough money now (with no improvement from me) to pay back the loan at 7% over 10 years. If I work hard it could pay it back more quickly.

Trouble is banks are not lending (RBS, HSBC and Barclays have all said no) and £100,000 is too much to borrow in one go unsecured (I am not going to secure my house against it)

If I make 4 simultaneousonline applications for £25,000 is that legal, ethical and likely to succeed. Or will I simply be turned down for a loan and torpedo my credit rating?

Legal - no
Ethical - no
Likely to succeed - no

7% is mildly ambitious too for four big unsecured loans I expect.

If you're happy to try that, why wouldn't you be happy to extend your mortgage. Assuming it leaves you under 90% LTV that would probably work out a lot cheaper than 7% as well. Might still fail 2 of the 3 'tests' above though, not sure if you can remortgage for business purposes but it sounds more reasonable than dodgy unsecured loans.

dealer_wins

Why not take out 8 £25000 loans and buy 2 businesses?

OneLife_OneShot

Not a chance in hell.

brendon

chertseyboy wrote: »

the business makes enough money now (with no improvement from me) to pay back the loan at 7% over 10 years.

You can't project today's figures 10 years into the future, particularly when you say "with no improvement from me". Have you some kind of business plan drafted?

Apples2

I think we've all missed the point of this post.

It IS a joke right??

yorkshireman2

If you're not willing to use your house as security then are you REALLY confident that this business is going to work?

As soon as you tell any bank manager that you're not willing to use your own property as security he or she will quickly show you the door.

I'd get to work on a detailed business plan. Get advice from whoever you can, and run the numbers again and again. Make sure to do a seriously pessimistic version of the cashflow forecast too, as if the business still pans out then maybe you would want to rethink your willingness to secure any loans against your property. If you're not, then you can't really expect anyone else to take a punt on the business.