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New Business loan?

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NorthFin
NorthFin Posts: 192 Forumite
Is there any way a person can get an idea how likely a new business loan application is of being accepted?

If the business plan looks good, and everything is in place, and the person already has a few thousand ready to go. But how likely is a loan for £7K going to be accepted or even £10 as a business loan?

The person's credit file is excellent with nothing negative at all.

Comments

  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Why not speak to a bank manager, maybe the 1 at your own bank.
  • Tixy
    Tixy Posts: 31,455 Forumite
    Impossible to say because it will depend on so many unknowns.

    Such as
    -what industry/trade the business will be operating in (e.g. some trades are specifically excluded by some lenders)
    -whether it is a start up or established business
    -the purpose of the loan
    -whether the financial projections indicate sufficient affordability and that the business would fit the interest cover criteria /covenants etc for the type of trade
    -whether the lender believes that the business owners are able to deliver on the business plan and the projected results
    etc etc

    Where are you planning to approach for the loan - a mainstream bank?
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    A lot will depend on how much you are prepared to put in - no lender will take 100% of the risk unless secured on a property.
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