£5000+ loan for 20 year old? Good credit history

oldhand

:think::think::think::think:

opinions4u

I did take a £5000 loan from my dad at 5% per day

I know kids suck the blood out of the family finances, but there's not a hope in hell I would charge my 20somethings anything like that to recoup my costs in the unlikely event of me backing their business venture.

I wonder what the business is and what the new business is all about.

Assuming it's for real, my money's on matched betting and spread betting. Possibly currency speculation. Most likely it's all a figment of a bored imagination.

JoeBloggs1

I think I've hit the quote limit (can't quote certain posts) so I'm gonna double post.

opinions4u wrote: »

So you expect a profit of £6k a week (based on the increase in bank balance). You imply you'll be turning over £20k a week - seven figures annually.

Yet you're desperately trying to raise £5k. Or £30k. Regardless of cost.

Why the rush? Why not accumulate profit and capital for future growth at a sustainable rate?

It all seems a bit muddled.

If it was just this business we were talking about, I'd agree, and say it would make more sense to wait it out, and let the profits accumulate naturally without loans. However, as I mentioned, there is another business that's been in the works in terms of planning for a while now, and I'm getting the feeling from it that time is now of the essence to get that started. As a result, I'd prefer to take the risk of a loan, in order to accelerate growth and provide capital for that, both giving me a lead in the market and diversifying myself. I don't expect this current business to last forever, but I don't expect it to only last a few weeks either.

DCFC79 wrote: »

I wonder what the business is and what the new business is all about.

If I told you that, I'd have to kill you :rotfl:

CKhalvashi wrote: »

30% margin (maybe more, from figures) would also give the impression that it's high risk, especially bearing in mind the implication that there is physical stock here.

We're on a 35%-ish gross margin, that actually works out to around 12% once our expenses (staff wages, office, vehicles etc) have been taken into consideration. For a new company, this is pushing it.



My thoughts, too!

Moderate risk, it's an established market, but I've basically come in, built something that no one else in the market has, or can have for quite a while, that means I totally dominate. Before, there were plenty of competitors, now, it's pretty much just me, with a couple of others just fighting for the scraps.

At the moment, I have next to no costs, although I'll be looking into setting up an office shortly, and I've had discussions with my accountants regarding structuring, which will add some costs, but those will be small in the scheme of things.

adindas wrote: »

With the loan for business the lender will definitely want to know more detail of the business you are running. People might be able to tell you if you tell more about this.

20yo, running business. Could still make profit even at 40mill % cost of borrowing ... ?

Goshhh ... Someone is probably living on another planet or confusing between the term of doing business and gambling (which some people might call it trading)....

Hopefully someday there would not be the end of family relationship with your dad if all the money is gone ....

I will admit there is a certain level of risk, but stock is offloaded very very quickly to negate that, and any losses which could happen, while potentially wiping out a day or two's profits, are very rare, and can be recovered from quickly. My bank is fully aware of what I'm doing. No worries RE my dad, the money is paid back with a nice profit for him.

worried48 wrote: »

If this really is a bona fide business (as opposed to a big gamble) I'd counsel taking things a lot more slowly, investing the profits back into the business rather than borrowing. Businesses can and do hit slow spells and what seems to fly off the shelves today can be out of fashion tomorrow.

It is very easy to be left with a lot of stock that looked like a bargain at the time but is now impossible to shift even at less than it cost you. We have several such items, which cost us in the low to mid hundreds each, that we have had in our storeroom literally for years because we can't quite bring ourselves to list them on ebay starting at £10 knowing that they will probably go for £50 on a good day, and these are not items of technology or anything that dates at all, they are just unfashionable brands, or brands that sell well in certain business models but not in ours. At times the money we tied up in these items would have been very welcome indeed in the business to pay suppliers or buy items we actually do sell!

In short, make sure the ground is solid under your feet before taking further steps, and then only take small steps. Anything more is a gamble.

Thanks for the sound advice.

Currently nothing is bought on credit, so thankfully, there's no worries about paying suppliers, only meeting payments for my credit card, which at the moment isn't an issue at all. It is indeed a bonafide business, and there is something behind it that backs up the money it makes.

I realise that when posting on a forum, claiming these big numbers, without saying a lot about your business, it's very natural to be sceptical. For obvious reasons, unfortunately, I can't really say a huge amount more about my business than I already have. Demand definitely fluctuates, but at the moment it's far outstripping what I'm able to supply, and it only seems to be growing.

JoeBloggs1

CKhalvashi wrote: »

This is the best thing to be considered IMO, too, and I've been in business for the last 10 years.

As a ceiling, you're looking 20% growth per year, before the banks stop being interested. The concern to them, is how this growth will be funded.

If it's so profitable, consider a long-term investor, who will be able to support you, however I'm skeptical with these figures, as it doesn't seem possible in my business experience, unless it's FX or something.

CK

I'm reluctant to involve outside partners and investors - I've tried going down that route before, and whenever I have, they've either left me doing all the work while they collect their profits, or the opposite, invested the money, and then massively reduced my control and ability to direct the business myself (which is a natural consequence of partners imo, and I really despise giving up control). Also, there's not much others could bring to the table to make it worthwhile, other than money, and that's not worth giving up equity for.

sharpy2010 wrote: »

Call me cynical if you like, but this seems to be a wind up/bored child (albeit with excellent writing skills) looking for something to do.

Thanks for the writing skills compliment Nope, no wind up, I'm happy to message a mod or similar, with further proof, but hopefully this should satisfy (applied last night, based on a 50% chance on Moneysupermarket's system, for £15,000 over 2 years.) I think applying for a loan is probably taking trolling a little bit too far

i.imgur.com/7xRkdxZ.png

opinions4u wrote: »

I know kids suck the blood out of the family finances, but there's not a hope in hell I would charge my 20somethings anything like that to recoup my costs in the unlikely event of me backing their business venture.

Assuming it's for real, my money's on matched betting and spread betting. Possibly currency speculation. Most likely it's all a figment of a bored imagination.

Not a figment of a bored imagination, and none of those things, although after this post I won't be responding to any questions about what it is I'm doing. It's not FX/betting/currency speculation/day trading/option trading, or anything that high risk. I'm willing to take calculated risks, but nothing like that.

I'd call it medium to low risk, in terms of totally wiping out all profits, I'd say very low risk, otherwise, on daily profits, I'd say medium to low (more on the low side) risk. Not being able to do it in a year's time? High risk. (again, without wiping out all previous profits, it may get to a point where I'm simply breaking even though, and that's when I'll be exiting)

JoeBloggs1

Damn it. i.imgur.com/QNTRL4A.png

sharp82

JoeBloggs1 wrote: »

I'm reluctant to involve outside partners and investors - I've tried going down that route before, and whenever I have, they've either left me doing all the work while they collect their profits, or the opposite, invested the money, and then massively reduced my control and ability to direct the business myself (which is a natural consequence of partners imo, and I really despise giving up control). Also, there's not much others could bring to the table to make it worthwhile, other than money, and that's not worth giving up equity for.

All that and you're only 20?

sharpy2010

JoeBloggs1 wrote: »

Not being able to do it in a year's time? High risk.

Well, as my Mum says, if you have an idea that works, get in make as much money as you can from it and get out when it stops or you can't do it any more.

Good luck

JoeBloggs1

sharp82 wrote: »

All that and you're only 20?

Yeah, I've been running my own business(es) full time since I left school a term after entering 6th form, and before then, I was doing business whenever I could from 14, often instead of homework (wrote articles for $5 a page for a while to fund things, when there was the opportunity, I'd do other people's homework for them for money) - let's just say, there's been many, many 30/40 hour days that I've worked over the past few years.

sharpy2010 wrote: »

Well, as my Mum says, if you have an idea that works, get in make as much money as you can from it and get out when it stops or you can't do it any more.

Good luck

That was my thinking. (While making sure to diversify so I have something to launch into when this is all over)

Thanks very much

CherlokHomes

JoeBloggs1 wrote: »

Yeah, I've been running my own business(es) full time since I left school a term after entering 6th form, and before then, I was doing business whenever I could from 14, often instead of homework (wrote articles for $5 a page for a while to fund things, when there was the opportunity, I'd do other people's homework for them for money) - let's just say, there's been many, many 30/40 hour days that I've worked over the past few years.

That was my thinking. (While making sure to diversify so I have something to launch into when this is all over)

Thanks very much

You sure you're not a 50 yr old lonely bloke who wants a bit of company on a forum?

Tixy

30/40 hour days - you've invented a time machine?

Btw taking out cash on your credit card is recorded on your credit file and is likely to be seen as a negative by potential lenders.

The loans you have been applying for - are they unsecured personal loans? they wouldn't be suitable in this instance anyway as they should not be used for investing in to a business (in the T&Cs of the loan).
If you are looking for a business loan then prepare a full business plan for both the existing and new venture and go to see a business/commercial team manager at a bank.