Business start up loan & Debt clear help please.

brightfuture23

Hey guys,

I'm looking to start a business that I think will become very successful in a short space of time. A lifestyle brand, connected to a foundation of goodness. My problem is that I have struggled over the years and got myself into debt. I have a few defaults on my credit history, in total I owe around £6,000 and I'm hoping to clear them and set up my new business with a loan of between £25,000 and £100,000. I have full confidence in my business idea and I'm basically ready to go, but I'm struggling to find a lender because of my obvious bad credit history. Can anyone advise me, as to what to do and where to go? I am destined to become successful, but I'm wallowing at the moment. Thanks BF

[Deleted User]

You're not going to get a business loan without the lender wanting you to put in a big chunk yourself, as part of your business plan.

So you need to clear the existing debt, save, then look again at starting the business. Consider what you can do to start the business in the meantime.

spadoosh

https://www.gov.uk/start-up-loans

Dont know your circumstances. But a start up loan for £100k (even the £25k) is unlikely, unless you can provide substantial funding for the business yourself.

What are your current circumstances and what is your business experience?

Brock_and_Roll

I'm looking to start a business that I think will become very successful in a short space of time. A lifestyle brand, connected to a foundation of goodness.


As a banker, I would already be pressing the hidden button under my desk to release the hounds!!


Putting debt issues to one side, nobody young or old, experienced or inexperienced gets a bank loan with having "skin in the game".


The bank wants to know that the borrower has an incentive make the business a success and not walk away when the going gets tough. Whether its a charge over the borrowers house, or evidence that he is putting in ££££, the bank wants to know that if that any pain will be shared!

Arleen

Start up loan is something you should look into (as given before: https://www.gov.uk/start-up-loans ). As long as you will work with your delivery partner and have a realistic business plan (which they will help you develop), you are very likely to be accepted, and they can go up to 25k. This will, of course, be a personal loan that must be repaid with interest.

I do strongly to go that route, as the mentorship and help they provide will be invaluable to you, and from the read of your brief description, you sure need it. Because if there were an easy and fast way to turn high profits, with an input of only 25 to 100k, it would have been ridden to death already.

Additionally, almost all businesses can be started with little money. So look over your business plan, assume that there is no way to get external funding and see how you can deliver a minimalistic version of your product. When you will do that, and the business actually works, then getting funding to scale it up becomes much easier.

brightfuture23

Thank you all for the advice, It is very much appreciated. I have struggled with Anxiety and Depression issues in the past, had a breakdown and things started to snowball. Things are much better these days, and I found balance a while back, I wouldn't even consider starting up otherwise. I have found a gap in the market, which my business will fit into nicely, there are currently similar formats doing very well, simply selling through social media, but my idea is better and should attract far more attention. I have no intentions if jumping ship, but I was thinking of the potential risk attached to me in the banks eyes, I think trying to find a start up, and starting off small is probably my best option then. I can start off small, I was hoping for an easier option so I could really make waves from the off, I guess if it were easy though, everyone would be doing it.

Gaz83

brightfuture23 wrote: »

Thank you all for the advice, It is very much appreciated. I have struggled with Anxiety and Depression issues in the past, had a breakdown and things started to snowball. Things are much better these days, and I found balance a while back, I wouldn't even consider starting up otherwise. I have found a gap in the market, which my business will fit into nicely, there are currently similar formats doing very well, simply selling through social media, but my idea is better and should attract far more attention. I have no intentions if jumping ship, but I was thinking of the potential risk attached to me in the banks eyes, I think trying to find a start up, and starting off small is probably my best option then. I can start off small, I was hoping for an easier option so I could really make waves from the off, I guess if it were easy though, everyone would be doing it.

Is it one of those daft Kleeneze / Herbalife / JuicePlus / NuSkin / etc. multi-level marketing scams - sorry, businesses - that are cropping up everywhere on FB these days?

Helvetica_Van_Buren

The best thing you can do is get a job and fund the business yourself, or else find in investor - there really isn't a quicker / easier way.

Borrowing money to start a business is very difficult (though not impossible) but without a proven track record you really aren't going to get very far.

foxy-stoat

Try Dragons Den to sell your idea.

PeacefulWaters

foxy-stoat wrote: »

Try Dragons Den to sell your idea.

"I'll lend you £50k for a 95% share of your business"

MEM62

A business loan and a personal loan are different products so you cannot combine consolidating your debt with financing your business. Under normal circumstances a business loan will require you to put up 50% of the investment amount. So, if you need for example £50K to get your business up and running you will have to find £25K to put into it and a bank might put up the other £25K if you have a solid business plan.

With respect to your confidence that you will be successful, I am sure that you are. But you are not wanting to play with your own money and it is easy to be confident when someone else is taking the financial risk.

You are unlikely to secure funding based on the circumstances outlined in your post.