Loan for Non-British National.

NinjaSavingKat

Hello,

I have a quick question for you lovely people! This might sound a bit weird but it has culminated following a run in with my local motorbike garage who have managed to be a little sly about the way they have handled my custom in the last few times I have been there.

The long and short of it is - the manager is an eejit and the mechanic I deal with ( from now on directly ) is more than capable of running a business on his own - but he cannot get a business loan to start it up. He is an honest fellow, very straight with me when repairs are unnessessary and would like to break free of his current employer and work for himself ( yes he could leave and go elsewhere but why out of the pot and into the fire - it's all or nothing now).

He is a Portuguese national as is his wife, he has been in England for 7 months. 3 years prior were spent in Scotland but was born and raised in South Africa.

At the moment he cannot even get a loan even for a car until 2 years at his new address is up.

My question - are there any schemes / banks / building societies or other areas that he could look down in order to gain a loan for at least £30,000 in order to open his own workshop?

He is in his 50's, ran a very similar business in South Africa for 18 years prior to leaving for a better life here in the UK. The experience is there - the money isn't?

What do you suggest dear MSE folk?

bargainbetty

He would need to produce a business plan for the bank to assess and also have a substantial sum of his own money to sink into it. The bank won't lend him the full amount, regardless of his residential status - they like to see you put your own assets up.

He may be better off moving to a more reputable employer first. If he is that good, he may be able to work his way up in another organisation.

NinjaSavingKat

Thank you BB - that's what I was thinking. Even if he was a national I guess a bank would want you to have a little money behind you. As he is not a "friend" per se I can't be too intrusive in my questioning of how much money he has etc or whether he has a plan set out.

He is too call me back tomorrow in order to see an end to my current issue with his employer and he is happy enough to talk to me about this so I might bring it up with him - he has had a good few more people tell him the same thing - get your own business! ....

What percentage do you think he would need behind him to ensure he is taken seriously?...

Tixy

In terms of borrowing a lot of lenders require you to have 3 years address history in the UK, which it sounds like he has.
As an EU national he is entitled to be on the electoral roll - is he?

If he wants to borrow for a business then as suggested above he needs a business plan to present to the banks. If the business plan stacks up then his nationality shouldn't prevent a lender being prepared to lend to him.

How is the £30k going to be spent? if a lot of it is for assets/equipment then his bank may suggest asset finance (secured on the assets) which is a lower risk for them and could reduce the amount they would expect him to pay in himself to the venture.

NinjaSavingKat

Tixy I would think the money is for initial set up including securing a lease, first few months rent and the myriad of equipment a mechanic would require.

Yes a business plan is common sense - it's the loan side of things that I was inquiring about.

He is on the electoral register yes.

I think his current bank wants him at the same address (not country) for 3 years perhaps as a small guarantee he is settled and less chance of him flitting off once they have given him £30,000.

Hmmmmm asset finance sounds interesting... see this is why I ask you knowledable folk. I am off to Google that now....