Poor Credit Loan Advice Needed

DumbBunny · 30 April 2014 at 9:54AM

I will try to keep this short. I had a package from my previous employer which gave me enough to pay my living expenses for a year so I took a very small amount from a pension and opened a craft shop. Very good deal as I am a concession in a store so pay no heat, light rates, only a percentage of turnover. Open 8 months and growing well, ploughing profit back into stock. Company defaulted after 8 months (November) and after keep promising to pay saying they had cash flow problems it went into liquidation and I am bottom of the list for payment. I need money for stock/living pending pushing the turnover back up as I have been living out of the business since December and no stock in since then. Company went bust owing me just under £7k. I own property worth c.£175k with a mortgage on my home of c. £26k. Credit rating smashed as am now behind with my mortgage (less than 3 months) and am paying off small £300 bank overdraft on an arrangement. Ditto credit card £900. Up to date with store card £150. I want to sell one property and am decorating prior to putting it on the market but have been refused a homeowner loan. Any suggestions? I need to borrow about £8k until the property is sold. I do not want to have to close my shop and lose a very good situation as this has been a long term ambition for many years and I have a good and loyal customer base. Would so appreciate help (or a guardian angel good at finance!). Any advice appreciated.

MikeBrown123 · 30 April 2014 at 12:03PM

If it was me, I would go and talk to your bank, discuss your options as face to face, a lot of the highstreet banks are quite personable especially when you are sat in front of them rather than on the phone.

I'm not sure how you have arranged your company finances, but could your company get a loan, rather than yourself?

It might also be talking to your accountant and getting their opinion... assuming you have one.

Good luck though, I am very jealous of you living your dream!

DumbBunny · 30 April 2014 at 1:03PM

Thank you for your reply. I have sat down with Barclays re a homeowner loan but was declined. HSBC, my personal bank won't play ball as I am over my overdraft and my local branch have no discretion. I am currently waiting a response from my business bank but have been advised my chances are slim as I have only been trading for 8 months. I have also spoken to the mortgage holder on my own house (RBS) and not been able to get anywhere. If you know anything about crowdfunding I think that is going to be my next port of call as I only need to raise money until the house is sold. I will speak to my accountant, good idea. Wishing you everything you need to follow your dream too.

Thrugelmir · 30 April 2014 at 2:17PM

Why bother decorating the property? Just get on with selling it. Sort out out your current monetary issues. Then get on with establishing the business on a sound financial footing.

DumbBunny · 30 April 2014 at 2:31PM

Thanks for the reply. I had a couple of agents out who advised a quick lick of paint (the house has been occupied by elderly parents) to freshen it up as this would help a quick sale while not losing too much because it looks tatty. You are right I need to stabilise the financial situation and then push on with the business. I'm aiming to get the property on the market in the next three weeks.