Loan to start new business advice

MSRC

Whats the best way for me to borrow 30k?

Ideally, i want to borrow the cash and have at least 4-6 months before i have to start repayments....

Its to invest in a new business. I cant get a new buisness loan as there is 3 of us and the other 2 have the cash already (from family) so im going to take it out in my own name instead and invest......

I have good credit history. I own a property but its in negative equity and i also have a consolidated loan which i took out with the mortgage when i first got the property.

I have about 7k outstanding on 2 credit cards which i over pay every month.... I have savings of about 2k.

I read that most only do personal loans of upto 25k but that sainsburys are doing one up to 35k... I obviously want to apply for the right one or get the best advice as if i not succesful with the first attempt, it will effect my credit history..

Any advice greatly appreciated.

Apples2

That's not going to happen.
You are better off focussing on your current debts and then building a savings pot.

Dump £2k onto the card with the highest APR and overpay that as much as you can. The card with the lowwr APR pay minimum plus £1.

suicidebob

You missed out the most important part.... what's your current salary?

MSRC

Mr Negative!! Always stays in the same position!

Apples2 wrote: »

That's not going to happen.
You are better off focussing on your current debts and then building a savings pot.

Dump £2k onto the card with the highest APR and overpay that as much as you can. The card with the lowwr APR pay minimum plus £1.

[Deleted User]

Apples2 wrote: »

That's not going to happen.

This.

Negative equity, consolidation loans, high credit card debt, not able to make repayments for 6 months - all reasons for a new loan to be declined by themselves, let alone all combined.

Work on getting rid of your existing debt and build from there.

Caz3121

you will not get £30k as unsecured
negative equity will likely rule out secured loan
are you going to be working in the business or continuing in your current employment
Assume staying, as a rule of thumb
(50% current salary - consolidation loan balance - card debts) = amount available to borrow
eg salary £30k, loan 5k, cards £7k = £3k available

If you are going to be working in the business do you have a solid business plan? the bank would expect you to personally pay in at least as much as you are looking to borrow
could you arrange with the others that you will buy in gradually as you can afford it

Fruit_and_Nut_Case

MSRC wrote: »

[STRIKE]Mr Negative[/STRIKE]!! Always stays in the same position!

Mr. Pragmatic, I think.

DCFC79

MSRC wrote: »

Mr Negative!! Always stays in the same position!

Yes of course you can get the loan you require, many options available to you, there's the nigerians or theres big harry down the pub who will lend what you need but if you miss a payment you will lose a digit.

Thought I was dreaming then, I can't see you getting the amount you need with the current debts which is what Apples said isn't it.

I suggest you clear your debts and save up.

I wish you luck in your quest.

Maybe I was a bit harsh with my reply but it doesnt change the fact it will be hard for you source the loan of that amount.

dealer_wins

OP be thankful you wont get the loan, it will be money down the drain.

Your attitude says it all, you would throw £30K of someone else's money into either an outright scam, or a pie in the sky idea!!

Either way your credit rating has saved you!! As Bruce would say, keep dreaming lol

PeacefulWaters

MSRC wrote: »

Mr Negative!! Always stays in the same position!

Well let's be honest, why would anybody lend you the money?

1. Start-up lending is the highest risk form of mainstream lending that there is.

2. There's no mention in your post of any personal stake from you.

3. The vast majority of unsecured lenders DO NOT do loans for investment in a business.

4. A typical lender who would invest in such a scheme expect a significant personal stake, repayments to be made, a personal guarantee, and a charge on a primary residence that has some equity.

Get the drift?

Sainsbury also state "Your Sainsbury's Bank personal loan can be used for virtually any legal purpose like a new car, holiday, home improvements, or debt consolidation. We don't give loans for businesses, speculative purposes such as investments and timeshares."

http://www.sainsburysbank.co.uk/borrowing/support/support_loans_faqs.shtml#accordion-item-1-14

19lottie82

MSRC wrote: »

Mr Negative!! Always stays in the same position!

Sorry OP, but more like Mr Realistic.

Personal loans cannot be used for business purposes.

Even if it wasn't for a business investment, the most a lender will generally lend you is 50% of your annual income MINUS any existing debts, so you'd need a salary of AT LEAST £74k (and that's not even considering the existing loan you already have, which you haven't mentioned if its secured / unsecured, or for how much?), and that's only if your credit history is immaculate.

Business loans are a different kettle of fish and will generally only offer to lend you 50% of the total costs, IF you meet their criteria and have a solid business plan.

The above is why your other 2 potential partners have borrowed from family, not banks.

I appreciate the responses may not be what you were hoping for but from what you've told us your idea is a no go, unless you can find a friend / family member who may be willing to invest in your business idea.