Personal loan while dad at home

threedee · 13 March 2019 at 3:39PM

Hello MSE people.

I am a dad at home. The opportunity arisen for me to start working at home but i need to buy some machinery that would run me about 4k.
My wife is self employed, we have 2 cars and 2 kids and are doing fairly well.

As i am "unemployed" what are the chances of me getting a 4-5k loan ? AFAIK i have good credit, no debts, no financial obligations, only one credit card that only does small ebay/paypal thing and its been doing it since 2005, etc. The loan will run me about 90-100 pounds a month, which i can handle easily as i am now. (5000 @7.9% for 5y = ~100 quid a month)

Thing is, its all a bit catch22-ey - cant buy machinery to get money to buy machinery...

I COULD scrape absolute minimum cash required for the thing in question but that would severely damage familys finances if done this way.

Just to clarify, my bank is offering me up to 7k@7.9% whenever i log into my bank account to count the beans...

Just need to hear what other people have to say about all this.

Regards
IK

enthusiasticsaver · 13 March 2019 at 3:42PM

You will not get a loan without an income. The offers are open to everyone but once you submit an application without an income you will be declined. If your wife is self employed that is problematic too. Only a certain percentage get the headline rate and if you are non standard borrower it is likely to be much higher. If you are doing well I would save up for it.

[Deleted User] · 13 March 2019 at 3:44PM

You won't get a loan with no income.

Use your savings and rebuild them.

threedee · 13 March 2019 at 3:53PM

"Use your savings and rebuild them. "
What do you mean ?

Thats the thing - i want to break out of being unemployed stay at home dad. As i said - catch22-ey.

Just trying to apply my own experience but working for myself. Registering for vat just to get business loan is stupid right now because i'm pretty sure i'll need time to rebuild my clinetelle, for which i need samples and ability to work right away. Which would become possible i got the equipment i need.

Are there any other options short of going to loan sharks (which is absolutely a no go territory no matter how i look at it) ?

[Deleted User] · 13 March 2019 at 4:00PM

Use your own money - the one you said you could scrape together - and rebuild that pot.

enthusiasticsaver · 13 March 2019 at 4:03PM

The lender will not be interested in that. They want to know how you will repay any loan you apply for. Surely if you intend to start up on your own business it will not only be machinery you will need to pay for there will be other costs like business insurance, accountancy advice, raw materials if needed, electricity and premises to run the machinery unless you plan on using it at home?

As you say you know you will need time to build up clientele so why should a personal loan be treated differently to a business loan which is really what you need. How will you make the repayments?

threedee · 13 March 2019 at 4:04PM

By scraping i mean REALLY scraping, as in bottom of the barrel, which will put me in dangerous position with allsorts IF s*** goes sideways. While 100 quid a month would barely register...

No wonder so many people on 100% dole and in debt up to their eyeballs... while all of that could be easily avoided...

#Edit# Not build but re-build clientelle. Quicker. Cant go to a client and say "i'll do you this in 3 months time..". You need to be able to say "is tomorrow ok ?"

As for business part - its all at home. no overheads. some startup materials will be sourced from past network, which is available NOW.

Willing2Learn · 13 March 2019 at 4:06PM

Slightly different subject, but related.

Have you considered doing online surveys and market research from home? I get £200/month doing that and it is a nice little earner

https://www.moneysavingexpert.com/family/make-money-surveys/

[Deleted User] · 13 March 2019 at 4:06PM

If you're not confident the plan will work, then don't do it, either with your money or anyone else's.

If £100 a month will barely register, cut your costs and you could save at least twice that.

Paul_DNAP · 13 March 2019 at 4:17PM

Does the equipment manufacturer do any sort of hire / lease / HP - if you could rent the gear to get started, build up an income, you can then approach the bank with a plan to purchase it outright.

threedee · 13 March 2019 at 4:17PM

By "s*** sideways" i mean car breaking down two days after i part with scraped money for machinery. Nothing to do with business itself. I'd need couple of months to recover after something like that NOT able to deliver on business side.