expanding business need funding

elliewild

i am looking to expand my business by buying some land (im a dog walking business) but i have no deposit for a business loan. The perfect location has come up by informal tender so i am researching options for purchase.

I have an excellent credit rating and equity in my home. I am wondering whether to try the business loan route or trying to remortgage or release the equity in my home to buy the land. Its really important for my business to have a base - at present we rent fields off farmers and its preventing the business growing because we keep moving around. if i had my own land i could pursue further business ideas to bring in money.

How do people get funding for their businesses? do they always have to have a deposit (what do start ups do?) im in my 4th year with good accounts. any help would be great

DCFC79

elliewild wrote: »

i am looking to expand my business by buying some land (im a dog walking business) but i have no deposit for a business loan. The perfect location has come up by informal tender so i am researching options for purchase.

I have an excellent credit [STRIKE]rating[/STRIKE]history and equity in my home. I am wondering whether to try the business loan route or trying to remortgage or release the equity in my home to buy the land. Its really important for my business to have a base - at present we rent fields off farmers and its preventing the business growing because we keep moving around. if i had my own land i could pursue further business ideas to bring in money.

How do people get funding for their businesses? do they always have to have a deposit (what do start ups do?) im in my 4th year with good accounts. any help would be great

Corrected that for you.
Your score isn't seen by lenders.

pramsay13

There are a few different options for funding.

You could release equity from your home assuming your mortgage provider allows it or you lie about the purpose. This will mean that if anything goes wrong and you lose the land / money it will affect your personal finances.

You could get a business loan, which you could secure on your home to make it more likely you get it.

You could see if anyone want to invest in your business. Especially if you are buying land it might be seen as a reasonably safe investment as if the dog business fails there is still land that can be sold.

Ozzuk

have you thought about buying woodland? More interesting for the dogs and lends itself to other uses. You can usually get several acres for 20-40k, so an unsecured loan and savings should easily cover it - we bought 3 acres for 25k mostly as a big dog play area

elliewild

yes ive been searching for woodland (like you say its an ideal option) but there is not any up near where i live unfortunately.

jonesMUFCforever

The fact that you have 4 years of trading figures is a good start.
Why not ask your Business banking manager at your bank for some figures of what they can offer, what they want in return(ie security)and how much a loan is likely to cost you?