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Do lenders use same criteria in deciding a business loan?
to an applicant as they would a loan? Do they tend to approve a loan to someone with bad credit, and missed payments, if they think the business idea will be successful? If no, why call it a business loan, why not just a loan?
Maybe they look more favourably on applicants bad credit because starting a successful business would help them improve their credit
Maybe they look more favourably on applicants bad credit because starting a successful business would help them improve their credit
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Who knows. Lenders don't make their acceptance criteria public."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0
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If I were lending to someone who was starting a business I would want to know about them and the business plan. I don't see why banks would be any different. If someone can't manage their personal finances it's raises concerns about how they'll manage the finances of business.0
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Business loans are secured on the balance sheet.
Creates an issue if you have no balance sheet, which is why they'll expect Directors' guarantees.
Forget thinking that your rock-solid sure-win business plan will blow away your branch "business manager" - if they have no mechanism to get their money back i.e. your house - you won't get the money.
For money backed by brilliant ideas - suggest VC route, but make sure you have your head screwed on...0 -
With a new business, the banks would want to see evidence that you are also taking a share of the risk on the venture...so if having a solid business plan and needing £20k, there would be an expectation that you are willing to put around 50% of that in personally0
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Hello, what I really want to know is, is there a point, and advantage to applying, for a 'business loan' rather than a 'loan', to set up a business, if one has missed repayments on their credit file?0
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Hello, what I really want to know is, is there a point, and advantage to applying, for a 'business loan' rather than a 'loan', to set up a business, if one has missed repayments on their credit file?
If you have got either 50% of the capital, or are prepared to give a personal guarantee secured on your home, then yes. Otherwise, then 100% no.0 -
and if so, what is the advantage? Thanks
There are many unsecured business loans advertised online right now0 -
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A sole-trader business0
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Then you and your business are one and the same. Any loan criteria will look at you and your history.0
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