Business loans for new company start up

BritishBronco

Hi all

Wondering on how much impact personal credit rating has on getting a bank loan for a business start up. Specifically a well reputed, well established franchise in the UK. I'd have capital to put towards the start up myself, but not all of it.

Any experience?

Thanks

tomtontom

BritishBronco wrote: »

Hi everyone, first post but have lurked the boards a bit.

I'm a British expat living abroad, I've been overseas for 4 years now and made my last payment on a loan and bank account in the overdraft 4 years ago. The total owed is circa 4,000GBP.

I'm looking at returning to the UK and wondering if the old "myth" is true that if you don't pay debt you're automatically declared bankrupt? Is there a specific timeline on this?

Not resident for the past three years, a high level of outstanding unmanaged debt - no responsible lender will touch you for quite some time.

BritishBronco

I remained a resident during this time. I had to keep my ties and residency to the UK open due to the nature of the VISA I was on. But nothing coming in to a bank account and yes, un-managed debt. How much effect would clearing that debt off have?

jonesMUFCforever

You have no chance of getting finance from anybody that will credit score you.
Does the franchise owner not arrange finance for you?

Even if you pay what you owe now there is no magic wand that will repair your credit file in the short term.

Anybody from your family that would support you?

BritishBronco

Just checked on Experian - I actually thought this would be a lot worse 4 years on?

My credit score is 689 out of 999

Showing 2 defaulted accounts:

SANTANDER UNSECURED PERSONAL LOAN
Loan Default £4,814 20/03/2016
This account has been defaulted
SANTANDER CURRENT ACCOUNT
Current Account Default £350 03/04/2016
This account has been defaulted

tomtontom

BritishBronco wrote: »

Just checked on Experian - I actually thought this would be a lot worse 4 years on?

My credit score is 689 out of 999

Showing 2 defaulted accounts:

SANTANDER UNSECURED PERSONAL LOAN
Loan Default £4,814 20/03/2016
This account has been defaulted
SANTANDER CURRENT ACCOUNT
Current Account Default £350 03/04/2016
This account has been defaulted

There's nothing positive about that.

Have you contacted Santander to make a payment arrangement?

PeacefulWaters

You've defaulted in the last few weeks.

And you expect somebody to lend you money?

Hahahahahahahahaha!

Richey_

Bronco are you sure you have typed that correctly as one of your defaults is 2 days in the future.
Is this an April Fool? Weird

BritishBronco

That's not the date defaulted I believe, just the last time the account was updated? That's just a copy paste from Experian.

Anyway, yes I understand it's a ridiculous scenario. I made some bad choices before I left and I'm now earning enough to pay it back. I've contacted Santander and waiting for them to get back to me.

BritishBronco

Assuming the following, what would be my chances:

1. The debt I have is paid off in full with supporting documentation
2. I can demonstrate to the bank manager a successful track record over the last 4 years of what I've done
3. I go with a BFA approved franchise that has over 30 franchisees in the UK all making 6 figures
3. I have 50% of the capital - 25kGBP


I ask them to loan me the other 50%/25kGBP?

CKhalvashi

BritishBronco wrote: »

Assuming the following, what would be my chances:

1. The debt I have is paid off in full with supporting documentation
2. I can demonstrate to the bank manager a successful track record over the last 4 years of what I've done
3. I go with a BFA approved franchise that has over 30 franchisees in the UK all making 6 figures
3. I have 50% of the capital - 25kGBP


I ask them to loan me the other 50%/25kGBP?

The problem won't be whether the debt exists or not, rather the fact it was allowed to get to that stage in the first place. As already stated, there's no magic button to press to get it wiped.

The best bet is to either see if the franchisor can arrange finance (although if they deal with Santander it could prove problematic) or see if you can borrow the money privately (friends/family), which isn't advisable IMO/E.

Take the figures you've been given with a pinch of salt, as they've presumably been given to you by someone that wants to sell you something, rather than someone independent.