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Help: Loan question
tomduck361
Posts: 3 Newbie
in Loans
Just remortgaged recently me and my partner.
Wanting 15k loan to renovate my partners hair salon? Was going to get a business loan, but for the amount we want we were told to get a personal. Obviosly with just signing up for a mortgage our credit files have taking abit of a bashing. When we search the loan eligibilty on MSE site hitachi (3.8%) says we have 90% chance, is there anything to worry about?
Shud we potentially try get 7.5k each?
Any help or previous similar dealings would be a massive help?
Thankyou
Wanting 15k loan to renovate my partners hair salon? Was going to get a business loan, but for the amount we want we were told to get a personal. Obviosly with just signing up for a mortgage our credit files have taking abit of a bashing. When we search the loan eligibilty on MSE site hitachi (3.8%) says we have 90% chance, is there anything to worry about?
Shud we potentially try get 7.5k each?
Any help or previous similar dealings would be a massive help?
Thankyou
0
Comments
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Who told you to get personal loans for a business expense?0
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Financial advisor0
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And what does your financial advisor suggest you say the loan is for, a new car, debt consolidation, home improvements perhaps? It's just that most, if not all, personal loans have something in their T&C about not being for business use. For example, I just got this off Sainsbury's website, "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."
So you'll probably have to fib on your loan application. Will you get caught? Who knows but if you have the type of financial advisor who encourages you to tell porkie pies it might be time to find a new financial advisor.0 -
Maybe get a couple of credit cards each?0
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tomduck361 wrote: »Financial advisor
I would look for a new financial advisor.
If the salon is running as a limited company then, if it fails, the debt belongs to the business. If you take personal loans you have the debt and if the business fails you will still be paying with no income.
Speak to the bank that holds the business account and see what they are prepared to offer.0 -
Most banks will not lend to small/new businesses without the directors placing personal warranties behind the debt, often secured by a second charge or similar, so being a LLC in that scenario is irrelevant.The views expressed here are my own. I am not a Solicitor nor am I affiliated with any of the parties I mention. If you disagree with any of my comments please say in whatever way feels most natural to you. No one self improves in a bubble!0
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