start-up about to go bust - my options?

Jock1

Hi,

My business has ran out of investment at a critical time and I’m wondering if I can get a business loan, despite me only just trading and not making profit yet.

I have a few hundred customers that have expressed interest in my service, but I’ve fallen short of cash at a critical time and can’t continue as it’s expensive to run.

Due to it being a start-up, I only see an option to try and sell it as it is. Or could I get a business loan based on my prospect customers and partnerships I’ve made that are due to come into play in the next few weeks?

options, advice is much appreciated.

Thanks

lindens

You can't sell a business that has no customers

Jock1

Hi, I have about 20 paying customers, and about 800 on a free trial which they would need to pay to continue using it in 2 months time

Thiona

Jock1 wrote: »

Hi,

My business has ran out of investment at a critical time and I’m wondering if I can get a business loan, despite me only just trading and not making profit yet.

I have a few hundred customers that have expressed interest in my service, but I’ve fallen short of cash at a critical time and can’t continue as it’s expensive to run.

Due to it being a start-up, I only see an option to try and sell it as it is. Or could I get a business loan based on my prospect customers and partnerships I’ve made that are due to come into play in the next few weeks?

options, advice is much appreciated.

Thanks

I'm out!

But I will give you some advice for free to assist you.

Look up the correct definition of a customer

Thiona

Jock1 wrote: »

Hi, I have about 20 paying customers, and about 800 on a free trial which they would need to pay to continue using it in 2 months time

Offer a £50 referral to existing 'customers' for every new customer they introduce to you that spends at least £50 with you.

That should solve your cash flow issues.

:cool:

Pennywise

What do you need the money for?

No bank will give you a business loan if you just need the money to pay your own wage/living costs. If you're wanting it to buy stock to sell or equipment, then you may have a chance (small) with a bank loan.

If you want to buy equipment, you can buy it on lease/HP or supplier finance.

What's your personal credit score like? Can you open credit card accounts and withdraw cash advances from the credit limit? Yes, expensive to do, but it's a lifeline and if you're sure you're "customers" will start paying shortly, you'd be able to pay it back quickly. Or get an unsecured personal loan from a bank - say you want the money for a car or caravan - banks aren't fussy if you've good credit history and won't check.

Jock1

The only funny thing about this so far is one of you is actually using my service ��

Jock1

Thank you Pennywise for an actual response.

I’ve been trading for a couple of weeks and have had 800 sign-ups in the last 10 days since putting out the free trial so it’s becining a bit overwhelming. I need help with managing customer contact and the money is required for indemnity insurance and to pay a software developer. I work full-time so this was a side project and still is, so seeing if I can sell or get a bank loan without it affecting the personal side of things for now, as I’m a new to this game.

Mistral001

What you are saying is that you are thinking of walking away from your commitments to these "customers" that are on a free trial. I would check your terms and conditions, but to honest you will probably get away with it even if your terms and conditions were written by a four-year old because people rarely take legal action against small online businesses.

Browntoa

Looking at your other thread about getting a mortgage I suspect you will struggle to get a loan at an attractive rate if at all

Browntoa

Have you looked at https://www.crowdfunder.co.uk or similar