Personal loan for business

Bilius

Hi,

Maybe someone knows where I could get personal loan for business purpose?
I only need 8k so its not worth the hassle writing a business plan. I know there are some lenders who lends personal loans for business, could you help me to find it?

spadoosh

Theres really little difference between a business loan and a personal loan for a start up (assuming its a start up as there no business plan). Both will want you to personally guarantee them, so should the business fail, theyd be looking for you personally.

Youll need an income to show you can afford the repayments or a good amount of capital, which im assuming is lacking as there wouldnt be too much need for the loan. If you do not have an income you can sometimes still get finance but you will need a rock solid business plan.


I will point out though that i suspect business might not be for you if you think writing a business plan is not worth the hassle when youre asking someone to lend you £8000. It seems like an incredibly naive approach to business.

poppasmurf_bewdley

Bilius wrote: »

Hi,

Maybe someone knows where I could get personal loan for business purpose?
I only need 8k so its not worth the hassle writing a business plan. I know there are some lenders who lends personal loans for business, could you help me to find it?

Eight thousand quid is not a small amount. It's a hefty amount, as you've proved because you haven't got that amount, or you wouldn't need the loan.

And if you can't be bothered to write a business plan, then it's a 99% cert that the business will fail, because there will be lots of other things you won't be bothered about. So who's going to lend you £8k to fail?

Nobody.

Bilius

Well, I'm not a businessman, do not have much knowledge in this field so writing a business plan is something I would struggle with, bearing in mind its more of a investment than a business what I need the money for. So I don't think bank would accept it anyways. I know it is possible to get a personal loan which is allowed to be used for business, this is what I am looking for

BrassicWoman

What sort of investment?

Do you work? What's your income?

Bilius

Amazon dropshiping.
Yes, 30k

spadoosh

Bilius wrote: »

Well, I'm not a businessman, do not have much knowledge in this field so writing a business plan is something I would struggle with, bearing in mind its more of a investment than a business what I need the money for. So I don't think bank would accept it anyways. I know it is possible to get a personal loan which is allowed to be used for business, this is what I am looking for

Youll need to show someone lending you money that you can pay it back. Whether you call it a business plan, an affordability check whatever doesnt really matter. Youll need to be able to prove you can pay them back.

You say youre not a businessman, so what makes you think this is a viable 'investment'? That should form the foundation of what youll need to show to a lender.

Its not a hard thing to do to formulate a business plan, it requires little more time than what you wouldve spent researching dropshipping. The main thing though is it is used to work out the viability of a business. This should be as vital to you as it is any lender.

Buying and selling goods is a business. It usually requires a fair amount of involvement acting as middle man.

Any high street lender will be able to offer a product for you providing you can afford it and they think it viable.

I appreciate youre only putting snippets of information but it doesnt seem well thought through. Businessman or not. You can start drop shipping from using a much smaller capital, doing it this way you build up experience and mitigate potential for losses. As your custom grows you can reinvest profits.

Lets look at your way for a minute.

Assume you get a loan for £8k at 10% interest rate over 3 years. Thats £257 per month.

Lets assume you put a 20% mark up on your products and you turnover 10% of your 'investment'. The money youve got coming in is £160 per month but your paying out £257 per month. How long could that last? Obviously mileage will vary depending on the product.

Im not usually one to be negative about start ups. I do think anyone can run a business but you do need to at least attempt to look at the business side of things.

System

Bilius wrote: »

I only need 8k so its not worth the hassle writing a business plan.

Don't even bother starting your business, it'll save you wasting £8k if you're intending to do it without doing a business plan. Anyone starting a business without doing a business plan merely for no other reason than working out if it is actually a viable idea is mad. One thing a business plan forces you to do is look at the competition, how much things are actually going to cost, what prices you can realistically charge based on the local levels of income, what realistic sales are likely to be and if its worth bothering getting off the ground.

Bilius wrote: »

Well, I'm not a businessman, do not have much knowledge in this field so writing a business plan is something I would struggle with, bearing in mind its more of a investment than a business what I need the money for.

So how do you know whether it'll actually make money or not? Its not hard to do a business plan, you don't need to be a rocket scientist but it does take effort and time to do but if you're a bone idle lazy plonk you don't want to be having a business anyway because they're hard graft. Plenty of guides online to show you how to do a business plan.

You mention Amazon drop shipping. Have you even looked at margins, your competition on Amazon and how many sales you'd have to do to get your money back? How many items of what you're planning on selling are sold on Amazon, for what prices and what cost to you? Starting out with feedback of 0 how many things do you think you're going to be selling to start off with? How do you differentiate yourself from the tens of thousands of other Amazon drop shippers so people buy from you instead? A business plan forces you to answer all of those questions.

ReadingTim

A business plan is simply a written description of how you plan to run a business.

If you can't write down how you'd run a business, it's probably because you can't run a business in the first place. So rather than lose £38k (£30k job, £8k loan), in the interests of money saving, I suggest you stick to the day job.

Bilius

Thanks everyone for your input and business lessons. Coldn't help but sense some negativity in the posts. No one really answered what was the original question. Found it. Ratesetter for 7% Apr.

spadoosh

Bilius wrote: »

Thanks everyone for your input and business lessons. Coldn't help but sense some negativity in the posts. No one really answered what was the original question. Found it. Ratesetter for 7% Apr.

Theres definitely negativity, its a result of you saying a business plan was too much hassle.

I did answer your question too, im not about to pick a product for you because theres even less details about your finances than there is with your business so im not in a position to suggest anything. Any high street bank will lend you money to start up a business as an individual (private) providing you meet their criteria. You just need to speak to them.