Want to secure a bank loan for a new biz, but.....

blimeyoriely_2

Hi all,
I have recently been made redundant and have spent the last few weeks deciding what to do next. I have previously owned a retail business but due to financial difficulties closed the shop and filed for bankruptcy some 8 years ago.
I really don't want to go back to an office based role and want to open another retail business.
However, I do not have any assets, or guarantor and having been made bankrupt would like to know the likelihood of me securing a business loan?
And who would be the best lender to approach?
I do not have friends/family that would be in the position to help either.
Many thanks.

paddyrg

I'd suggest you represent a significant lending risk, seen through a lenders eyes, so I'd imagine the chances are somewhat slim.

What line of business are you looking to open? People might be able to suggest lower-cost ways to get started.

blimeyoriely_2

A small women's clothing shop. I live in an affluent village that is rapidly developing with new businesses and franchises moving in. It'll be an excellent opportunity.

I recognise I'm not the best candidate for a business loan, but with a strong business plan and a good business model I wonder whether lenders make exceptions.

paddyrg

Not just about your previous circumstances, but all startups find borrowing difficult. Womens clothes shops are somewhat high risk - large ranges, high startup cost, multiple sizes to stock, online shoppers using you as a free measuring/fitting service. I think your best bet, if you're convinced it's a great opportunity, is to get a sleeping partner - if the village has a lot of affluent potential customers and is booming, perhaps one of them would become a backer/partner? I can't imagine the banks will be interested TBH.

blimeyoriely_2

Thank you paddyrg

CKhalvashi

Paddy's advice was what I was about to write.

It's sometimes a case of getting a potential customer or two to invest, and this seems to be one of those cases.

Bobarella

Hi Blimey
I have a retail business too. My first thought was do any pop ups run in your area?
Like pop up shops you could take on for a short while? That way you could check out the customer base before putting too much on the line.

Bob