Default on Credit File = no finance for new business start up

DefaultedEntrepeneur

Happy New Year to you all!!

I set up my own business last Mar & it has been doing really well & 2017 is looking even better I had to retire due to ill health at the age of 35 from my last job in 2014; received a tidy pension lump sum & a monthly pension. I have improved health wise hence new business start up.

However because I was on benefits during my illness I had to enter in to debt management plan with Natwest with help from Step Change, I never missed any payments ever or went overdrawn, bankrupt etc but now my Experian credit check shows up a "default" in my credit file and while I have been trying to source finance for my business via Start Up Loans UK I keep gettIng refused from lenders . I am living off my pension lump sum now & propping up the business monthly from my pension until I can find a better solution. I don't want to spend all my lump sum obviously & would prefer to invest it for my future but as my business turnover isn't huge just yet I have no choice

Have you any advice, tips, suggestions for me please??

Thank you!

[Deleted User]

What is the date of the default?
What's your income?
How much are you looking to borrow?
Are you applying for personal or business loans?

runforlife

Unfortunately if you haven't met the minimum contractual payments with Natwest for a credit card then you are in default of the account and as such one is likely to be recorded. Thats not the same as meeting the stepchange payments which will be less than the min contractual payments with your creditor.

Aquamania

Not happy with these responses? Why else have you started a new thread elsewhere asking the same question???

https://forums.moneysavingexpert.com/discussion/5580685

MHOWARD_2

Aquamania wrote: »

Not happy with these responses? Why else have you started a new thread elsewhere asking the same question???

To be fair, one is in the credit file section and one is in the small business section. The op probably wants a broader scope of answers as possible. No need to jump down their throat.

lincroft1710

MHOWARD wrote: »

To be fair, one is in the credit file section and one is in the small business section. The op probably wants a broader scope of answers as possible. No need to jump down their throat.

As many posters look at more than one MSE board, it is recommended that threads are kept to one board

motorguy

DefaultedEntrepeneur wrote: »

Happy New Year to you all!!

I set up my own business last Mar & it has been doing really well & 2017 is looking even better I had to retire due to ill health at the age of 35 from my last job in 2014; received a tidy pension lump sum & a monthly pension. I have improved health wise hence new business start up.

However because I was on benefits during my illness I had to enter in to debt management plan with Natwest with help from Step Change, I never missed any payments ever or went overdrawn, bankrupt etc but now my Experian credit check shows up a "default" in my credit file and while I have been trying to source finance for my business via Start Up Loans UK I keep gettIng refused from lenders . I am living off my pension lump sum now & propping up the business monthly from my pension until I can find a better solution. I don't want to spend all my lump sum obviously & would prefer to invest it for my future but as my business turnover isn't huge just yet I have no choice

Have you any advice, tips, suggestions for me please??

Thank you!

As per other posts on this thread and the other one, if you're not prepared to put your own cash in, then why would you expect that someone else would?

Also, whilst you say the business has been doing "really well" you seem to be saying

• You're not drawing any income from it and living off your pension
• You're having to put money IN to the business every month to keep it afloat

After heading towards a year and no sign of breakeven let alone profit i would be, personally, getting very concerned. When, from your business plan, is the business expecting to break even, and are you on track for that?

Be extremely careful - in business its very easy to get a false positive of success because of turnover figures that dont translate into actual profit.