Small Business loan/backstop loan desperate advice needed
in Small Biz & Charities' MoneySaving
6 replies 91 views
We would be grateful for any advice given please. My husband owns a 50% share of a property worth £400,000 which has no mortgage on it, together with a field worth £150,000. Although he is rich in property, we have no actual funds and scrape by each month. He has registered a business and looking to start up his own small business. What we cant seem to get help with is how to to get a business loan with the field used as collateral against the loan, or a loan that could be secured on the land and until the business had an income, then pay it back. He needs to buy the machinery to start the business and would need to borrow £75,000 for this. He has never been able to obtain a personal loan as his house is jointly owned with his father who is over 70 years old although we are in the process of having the title split on the house so that his half will be owned outright 100% with its own title number, which may help matters. However we have never understood why, when he owned over a 20 acre land and woodland, why this could not be used against any borrowing. We don't know where to start with it all. Any advice would be really appreciated! Our credit score isnt great but we thought that if you owned assets which could be used against a loan as security, then it would be easy to obtain >!
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