Business Loans

sazzz_2

Hi Guys!

I'm new here, so firstly a big HELLO to you all

I'm starting this thread to hopefully get a bit of friendly advice concerning business loans.

I've been running my online business for a year now, and want to expand, via a loan of £20,000. I approached my bank of 20 years with my business plan & sales forecast, only to be turned down on account of my credit score.

Having previously thought my score was reasonable, I signed up with Experian to 'make sure'!

My credit score is 756 and my public score is 842, which I'm told is higher than average.

Any ideas on why I wouldnt be able to secure this loan? Or where the place to look would be?

I understand that not having a PEFECT credit score will result in a higher rate of APR

Thanks in advance!

Sarah x

DCFC79

sazzz wrote: »

Hi Guys!

I'm new here, so firstly a big HELLO to you all

I'm starting this thread to hopefully get a bit of friendly advice concerning business loans.

I've been running my online business for a year now, and want to expand, via a loan of £20,000. I approached my bank of 20 years with my business plan & sales forecast, only to be turned down on account of my credit score.

Having previously thought my score was reasonable, I signed up with Experian to 'make sure'!

My credit score is 756 and my public score is 842, which I'm told is higher than average.

Any ideas on why I wouldnt be able to secure this loan? Or where the place to look would be?

I understand that not having a PEFECT credit score will result in a higher rate of APR

Thanks in advance!

Sarah x

First of all your actual score isnt taken into account for loans as the lenders dotn see it, all they can see is whats on your report eg what if anything you have defaulted on etc.

Whats the public score when its at home, anyone know ?

Is this correct "I understand that not having a PEFECT credit score will result in a higher rate of APR ", can anyone answer this ?

Is there even a perfect score ?

sazzz_2

Well this was clearly a waste of time.

gb12345

sazzz wrote: »

Well this was clearly a waste of time.

So is your loan application, unless you are willing to put up £10k of your own money - no lender is going to take all the risk.

gb12345

DCFC79 wrote: »

Is there even a perfect score ?

It is 999 apparently, if one of the CRAs is to be believed.

Nice_Weather_For_Ducks

As others have said, you need to be putting in capital yourself before anyone will lend you £20K. Either cash, or secured on your home.

And you need a better attitude!!

Thrugelmir

sazzz wrote: »

I understand that not having a PEFECT credit score will result in a higher rate of APR

You would need to meet certain criteria to obtain such a loan. Before even getting to the nitty gritty of the terms on offer.

thegrind

I'm afraid this is most likely the case, would you put £20k into an online business when the business owner isnt putting their hands in their pockets?

DCFC79

sazzz wrote: »

Well this was clearly a waste of time.

Why say that ?

You hardly gave people a chance to reply before you say its a waste of time.

jonesMUFCforever

OP that is the original poster you have not given us any clues as how well or otherwise your business is doing.
You also have not said whether you applied for a personal loan or a business one. They are dealt with very differently.

I agree with other posters who say you will have to put some of the money in yourself or provide security.

What do your accounts say about your capital account - how does this compare with last year?

Have you got any other debt either in or outside the business?

Apples2

If ole Sazzzy considers her own "score" only reasonable, there are clearly issues within the file.

Not that ole Sazzy cares too much what other people think of course with that attitude.