What type loan-or who do I loan from?

Tixy

I just need a lender who can perhaps see beyond the norm and see that our business has grown uite a lot in a short time and see's that the shop move is beneficial (moving from a village to a city centre) and is a positive step forward, we just need a temporary leg up. We're not talking 50k here, we're talking 2-5k.

So apply to a bank for a loan. You will need at least
-your first year accounts, I assume these are completed.
-some management accounts for 8months year to date.
-some financial projections that show your projected profit & loss, a cashflow showing cash being generated and that there is sufficient cash surplus to repay the loan and to pay yourself sufficient drawings to live on (as well as maintain or grow your stockholding or whatever you plan to do).
-business plan or outline to explain the reason for the move and why it is beneficial for the business.

or you could look in to any local community finance types of loan - your accountant would be a good place to ask about these, or possibly business link. They too though would need to understand your business, its past trading and projected future trading.

In terms of a separate bank account - you don't legally require one to trade as an unincorporated business but it is by far the preferable option and certainly much preferred by HMRC especially with cash businesses if/when they come to do an inspection of your records/accounts etc.

nndh1_2

Hi Tixy, Thank you for your advice. I think I will speak to my accountant. I've not given a bank account much thought because I thought it was pretty much impossible to get any sort of loan through banks right now and came on here looking for options perhaps a bit more under the radar :-)

Brock_and_Roll

nndh1 wrote: »

I can appreciate perhaps not everyone can understand that but not all businesses work the same way. Our accountant is excellent and was recommended to us by several people, perhaps he's just more open minded than some and understands our business.

To be honest pretty much all businesses actually work exactly the same way......As the saying goes "sales are vanity, profit is sanity CASH IS REALITY".

I appreciate the need to build up stock to make the shop look attractive, but you appear to be in a position now that you are facing a bit of a cash crunch and, if you cant get access to funds to pay the next bill as it falls due you may be technically insolvent. What you are doing is just a different form of a common "killer of businesses" - "overtrading"

Given what you say about your businesses short history and limited financial statements, I would be extremely surpised if you were able to source a business loan of any kind and as such should either sell some stock or raise money personally somehow.

jonesMUFCforever

One word comes to mind here - SHADY!

I don't believe for one minute that a QUALIFIED accountant would make that comment about not having a business account.

nndh1_2

Oh dear, there always has to be one 'know it all' on every forum doesn't there.

I came on here for advice, not to be talked down to wise guy.

jonesMUFCforever

Noticed you didn't disagree with any comments though.