Business Loans and Debt?

Suck_Fake

Hello,

There is an option to purchase a taxi in my area for £25k, which is the going rate, but the seller is looking for a quick sale due to poor health.

At the minute I owe £5k (It was 10.5k) to link finance and £1.2k (it was £3.5k) to moorcroft debt recovery. It was debt created when my family circumstances changed a few years ago. I have kept up with the repayments ever since. I also have £3k on a low interest rate credit card.

I currently have £1k available each month after all the usual bills, which leaves me £500 to put into savings and £500 for food/petrol/socialising. I've only been doing this 6 months so I have £3k in savings.

I have a mortgage of 117k and my house is worth 215k but it was purchased through an assistance scheme and therefore I cannot sell it on the open market for 2 more years and I think there are restrictions about remortgaging.

I don't plan on driving the taxi myself. I plan to stay in my £35k job and employ drivers. average profit from doing it this way is between £10k-£15 per annum.

So it makes sense investment wise and a loan would easily be repaid, but time isn't on my side. i could do with more time to improve my finances more.

Does anyone specialise in these types of loans or area. Do you know what would be the best way or the best company to approach? i haven't approached anyone yet in fear of damaging my credit file. Or do I have no chance.....£22k is a lot to ask for!

thanks in advance

foxy-stoat

You will probably struggle to find anyone willing to lend you the money required.

Years_of_debt

1.2k to a debt recovery and saving £500 a month.
You’re immediately better off clearing that debt, Getting that creditor shown as satisfied on your credit file and going from there.
If a creditor is still putting you down as a missed payment each month your credit file is going to be shot & getting 22k loan or a business loan is going to be difficult.

Suck_Fake

Thanks for the replies.

I have been putting the £500 away to show I could afford the payments of a potential loan, and once I was up to £4k I was going to try and offer it to link financial as final settlement. So that their debt was off my file and hopefully save me £1k while I'm at it. I was thinking of targeting the largest first as I assumed this would be the one most harming my chances.

but maybe I'm doing it wrong. thats why i'm on here :rotfl:

That old debt is going to damage me for a few more years unfortunately. My credit rating is 305 on clear score. anyone have any experience and know how long it takes for forgiveness.

Willing2Learn

Have your debts to Link and Moorcroft been marked as defaulted? If they have, then it will takes six years for 'forgiveness', which is six years from the date of default. Otherwise, it will be six years from the date of settlement.

Suck_Fake

I'm at complete novice at credit reports ect. I have literally just paid what I could afford and not thought about getting to the end too much.

Clear score says my link financial account was opened in March 2013 so I assume that is when they took it over. there is no info in the payments section to say I have either paid or missed payments. Could I assume this could be off in March 2019 if it was all paid up?

Moorcroft aren't on my clear score file but they are collecting for Vanquis, and their payment section says I have been making payment since Aug 2014 but doesn't say when i defaulted. Can i assume that it could be off my record by Aug 2020?

thanks for any help

[Deleted User]

I would issue a word of warning about taxis most areas are now flooded with them (thanks in part to uber) our town of around 100,000 people now has 412 taxis double the number of just three years ago, I agree that getting finance will be almost impossible but just in case someone is daft enough please please please do more research and don't be pressured into doing a deal.
Keep in mind that finding drivers won't be easy now we have all but full employment and that the taxi will probably have to be inspected twice a year.

Ecommerce.businessman

My dad and all my uncles were taxi drivers....

Back in the 1990's it was £1,000 - £2,000 a week job, my dad had a lot of spending money I remeber like it was yesterday.

They all left before 2005, now I think taxi drivers struggle to even make £1,000 a month.

So when I read you plan to hire drivers and profit £1,000 a month it dont add up to me.....

dealer_wins

If this was a highly profitable thing to do, a big business would be doing it in bulk.

MEM62

You are unlikely to get a personal loan for that amount based on your salary - even of your credit history was favourable. With the debt history you have I think this would now fall into the 'no chance' category.

I am also of the opinion that your figures do not add up. Have you made a proper business plan for this venture or are you projections based on 'back of a fag packet' calculations?

It is very easy to have a idea and get carried away because you see the potential of making a few bob. The realities of running a business are often completely different from the expectations of the inexperienced.

There have been a few threads on these forums based on the lines of "I have a great business opportunity, limited time to buy into it but I have no money". I would imagine that none of them ever came to anything.

If you want to start a business you have to have money (cash) of your own to put into it, a good, solid business plan and a proper understanding of what you are getting yourself into.

greatkingrat

If 25k is the "going rate" for a taxi, then presumably they must come up for sale reasonably frequently, and therefore there is no reason you have to buy this particular taxi.