Need advice on how to go about getting a loan.

Entsolen

Hello,

I am in dire need of a loan.

I have started my research on this website as it has quite a good reputation with google.

I earn in the interval of 40k to 60k British pounds per year.
I have been employed for the last 3 years and have therefore had a consistent income all that time.

Before that I had a decent consistent income from student loans and bursaries.
I have never been in debt and haven't taken out any loans, overdrafts or made any credit card purchases.

I am looking to get an unsecured personal loan (although a business loan may be more appropriate as I need the money to fund myself and start my own business) for as long as possible and as much as possible, but I am still hoping to pay a reasonable amount of interest. I think over 8% interest would start to hurt me....

I am hoping to find out as much about this topic as possible in order to go about doing this in the most intelligent way.

Any advice or things to read would be greatly appreciated.

Some questions that I have:

How likely am I to get accepted?

What kind of amount can I expect to get?

What kind of information will I need to provide?

McKneff

If youve been earning all this money have you not been saving any. If not what have you been spending it all on

Entsolen

McKneff wrote: »

If youve been earning all this money have you not been saving any. If not what have you been spending it all on

I have been living and enjoying life in London, which can be quite expensive. I've only managed to save about 10k. Ideally I need another 25k+

Arleen

Entsolen wrote: »

I have been living and enjoying life in London, which can be quite expensive. I've only managed to save about 10k. Ideally I need another 25k+

With no credit history, your hopes for 25k of an unsecured loan are, pretty much, a dream.

And the business loan is not going to happen either, as they will require a functional business with healthy cash flow even to consider it. You could, maybe, try with https://www.startuploans.co.uk/ as from my experience they are pretty fast if you have a solid business plan, experience in the field and realistic means to repay it if the business goes to the skid.

The other alternative is to start your business on 10k, instead of 35k. There are very few in which this cannot be done.

Entsolen

Arleen wrote: »

With no credit history, your hopes for 25k of an unsecured loan are, pretty much, a dream.

And the business loan is not going to happen either, as they will require a functional business with healthy cash flow even to consider it. You could, maybe, try as from my experience they are pretty fast if you have a solid business plan, experience in the field and realistic means to repay it if the business goes to the skid.

The other alternative is to start your business on 10k, instead of 35k. There are very few in which this cannot be done.

Will look into startup loans. Thanks!

What do you think would be a realistic loan from a bank for me?

[Deleted User]

Far too many factors to say.

leespot

Entsolen wrote: »

I have been living and enjoying life in London, which can be quite expensive. I've only managed to save about 10k. Ideally I need another 25k+

But if your business idea was a good one, surely you'd have saved harder to invest in it? Living and enjoying life in London whilst expensive is a choice - you've put that above your business venture. It comes across that you are not serious about getting your business started.

DCFC79

What is it you want to do with the money ?

Do you have a business plan ?

MrsTinks

Business loans...

The banks point of view will likely be that if you're not willing to put it all on the line then why should they? Same as any investor would.

Cut back on your partying, save like a demon and get together what you need +£10k (trust me on this) before you try to start this off.

Get a credit card with a low limit and use it, then pay it off monthly IN FULL!!!!!! This will show you being responsible with credit and will start to build up your history.

I work in a start up - trust me things will always take longer than you think, be that little bit harder than they should, and cost just a bit more than you expected. So have contingency funds!

A sub 8% APR loan is a hard rate to get with a good credit history, I would say highly unlikely with no/virtually no credit history for that size of loan.

You can of course apply, but only do it once or it will put a dent in your rating for a while when/if you get turned down.

Entsolen

MrsTinks wrote: »

Business loans...

The banks point of view will likely be that if you're not willing to put it all on the line then why should they? Same as any investor would.

Cut back on your partying, save like a demon and get together what you need +£10k (trust me on this) before you try to start this off.

Get a credit card with a low limit and use it, then pay it off monthly IN FULL!!!!!! This will show you being responsible with credit and will start to build up your history.

I work in a start up - trust me things will always take longer than you think, be that little bit harder than they should, and cost just a bit more than you expected. So have contingency funds!

A sub 8% APR loan is a hard rate to get with a good credit history, I would say highly unlikely with no/virtually no credit history for that size of loan.

You can of course apply, but only do it once or it will put a dent in your rating for a while when/if you get turned down.

Thanks I guess for now I'll get a few credit cards, make some purchases and start paying them off.

DCFC79 wrote: »

What is it you want to do with the money ?

Do you have a business plan ?

I need the money to buy equipment. I also need to fund myself for food/rent/basic needs for roughly 2 years. I will also need to have some spare money in case I need to pay people for their work, as well as advertising costs and other costs...

I think I could come up with a really decent business plan, in the IT sector.

jonesMUFCforever

OP from the way your first post is written suggests to me that you may not be a UK citizen -- is that correct?

If so you will not get anywhere near what you want until you have been here for at least 3 years.