Finding Short Term Loan of 10Grand - For One Month???

joe501

Hey everyone!

I am 16 years old. I have a good business head and I am quite the entrepreneur.
I am currently looking into the process of buying stock in wholesale and selling individually. I have already set the wheels in motion with the council with regards to getting a street traders licence, and I have also started a website and ebay shop for my business.

However, to get started, I need a substantial amount of money. The deal I am looking at currently involves me buying one hundered ipods for £93 each, (£9300) and selling them at £110 each (rrp 130), therefore making me a £1,700 profit! :beer:

I know these will sell like hot cakes, I have done my research - these are the brand new must have models, and my price will be the cheapest on the internet, and if i choose to, the street.

The reason I have gone for such a large number on my first go is simple - If I did the same excercise with 10 ipods, I would still need a loan, and my profit would be less than £200, meaning I need another loan for my next batch of stock. With 1,700, I can invest it directly into more stock, and never worry about borrowing money again.

There is, of course, the massive problem of money. Where the hell am I going to get £9,300 from? But if only I could --- I could pay whoever I borrowed it back from in a matter of weeks!

So, what I am looking for, is a place where I can get a loan of £9300 for a very short time period - lets say one month to be on the safe side. Please, do not patronise me by saying I am only 16 -- I have a way with words and people, I could probably convince most people that I am trustworthy enough to invest £9,300 in!!! If it is not legally possible for a 16 year old to get this loan, I can effectively drag one of my parents along and do it in their name!

I don't know where to look, I will speak to my local bank tomorrow, but I know banks are not the only option.

If anyone could help me I will be very very grateful and I will even give you a share in the business if you would like - who knows it could be worth an awful lot one day!

Please, I hope some of you will get back to me, and respond to me like an adult - (trying not to sound big headed but if you spoke to me about this in person you would not treat me like a 16 year old!)

HeadInSand_2

Well I'm impressed by your command of the English language, most 16 year olds don't seem to have this ability anymore.
I think you'll struggle to find a loan for this amount and this timescale, however, it may well be worth considering a 'normal' loan and find one with no penalty for paying it off early (bear in mind you'll need to settle the full amount) obviously ensuring it's not a front loaded loan (where the interest for the full term is added on at the very start) - you will incur charges/interest (why else would they lend you money) so factor this in.
1 month sounds a little optimistic to turn it around, you should plan 2 months, if you turn around in 1 month then great, but always have a contigency plan.
Naturally your parents will have to arrange this as I seriously doubt you'll be able to get a loan from a Bank at 16.
Good luck.

itsnever2lateisit?

You will probably find that your age will be a handicap, which is a crying shame. So you will almost certainly need your parents to act as guarantors.

Have you done a business plan, outlining your USP, the market etc etc etc?
Then price the plan up as a budget?

Your best bet is probably an overdraft facility, but whether you can get it I just dont know.

Good luck with your venture

Emmzi

I'm afraid the bank won't legally be allowed to lend to you at your age, as if you default, they have no way of enforcing the contract as technically, you are a minor.

The very best of luck convincing your parents!

jonesMUFCforever

Come on people TROLL alert.

No 16 year old talks and writes like that!!

silvercar

If you can legitimately get ipods for £93 each, why can't everyone else?

Sounds well dodgy!

bandraoi

It does sound well dodgy.
Can you buy the original ipods on a credit card?
Just buy on a credit card as many as the limit they'll give you (or your parents) allows. Sell on and pay off 1 month later when your statement arrives. No interest incurred.
The next month buy more ipods with the credit card and profit and continue to build it up that way.

jonesMUFCforever

I still smell troll but anyway would you buy an IPOD from a street trader for £110??
Would you buy from a website that does not offer credit card payments (which he can't as he has no business account and is ineligible because of his supposed age)??

Time waster Dreamer and a Troll.

joe501

ejones999, I thought a Troll was supposed to cause havoc and unrest on a message board? I have far better things to do than lie about my age and write a huge long post on the internet just to waste other peoples time! You should also have better things to do than make needless accusations on a forum with otherwise friendly people.

I take it as a compliment if you don't think I am 16 as you think my language and bussiness sense is better than that of someone my age, so thank you very much for praising my intellect. (but i assure you i am not lying about my age, it would be far eaiser if I was 18!)

With regards to your criticisms, I take them on board, but trust me when I say I am more than capable of selling 100 ipods! I have completed much harder tasks than selling a highly desirable item at £20 under RRP a month before christmas (if i can get the money sorted in time)!!! And I have the option to receive credit card payment.

To everyone else, thanks for all the helpful comments so far! :T:T I am particuarly interested in the credit card idea, as I could simply pay off the bill at the end of the month.

Where and how would I go about obtaining a credit card which would allow me to owe ten thousand pounds? Without incurring massive fees of course! Please note I could do this under a parents name as I am underage. Thanks again to everyone so far and I hope you can continue to help me further!

P.s don't worry - the ipods are completely genuine, i have very good contacts, the reason they are cheap is obviously because I am buying in bulk - thats the idea of wholesale.

JDMYOFAN

All I can say is:

eBay is a very tough competitive market.. Believe me, you're not the first person to have this idea. A lot of people buy from china, possibly dropship and sell cheap..

When you go in at £20 below RRP and your competition on eBay see's this, the price war will begin. Don't forget the fee's associated. Listing fee, final value fee, paypal fee, Tax, NI.. I can't see your profit beign worthwhile..

Anyway, assuming you've worked out your figures and still come out with a good worthwhile profit. Here's a little about me: I bulk imported Sky HD boxes, platinum powerseller (15k+ a month). Had my own website and there was a lot of hype about the price I sold at. Undercut the entire ebay. In the end however, it just wasn't worth it. I'm sorry but there are people out there who can buy in bigger bulk and can sell for a lot less. They'll see your price and slash theirs. I really don't mean to burst your bubble but the market has already established and you need to find a new one.. Great idea, but a little optimistic.. The only reason short term i was sucessful with ebay was I had a Sky dealer certificate and knew insiders.

To all the haters, it's perfectly possible to have your head screwed on at 16 years old. Don't question it, the websites for advice.

Good luck either way bud

JDMYOFAN

And the credit card deal - i doubt it... I feel as though i'm on good money, and the highest limit I'm currently on is £2700!