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Self-employed on a low income needs a loaned £3-4k buffer cash to be repaid within 2 years
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£5-6k is over 6m of your current income. For many to have that in reserve, especially on a low income, is just a dream. That's why your situation is a little unusual.
If you are more than usually anxious about what ifs and even if not you may want to make sure you have good insurance cover as the main risk I can see is you being unable to work for whatever reason.
Provided I get a "new" used van on some bad credit hire purchase agreement, do you know, what will happen to me, if, still during the hire purchase agreement, my finance provider goes bust, no one takes them over as a running concern, and the government refuse to step in?
Is it possible that, in such circumstances, I will lose the van, and no one will bother to compensate me for the lost equity, because it will be the employees of the bankrupt finance provider and the government, whose claims will need to be satisfied first, and I will end up only in the last group, along with all the business creditors of the bankrupt finance provider?
And do you know if I can insure myself against such sort of risk in England?
1. No business plan = no chance of a loan.
2. Putting together a solid business plan = better chance of getting a loan than not having one.
Your choice whether to make life slightly easier for yourself.
No one knows if they’ll be accepted for a loan or not until you actually apply, so get on with it. Everything else in this thread is just bluster.
Instead of soliciting for some accountant to make a business plan for me or making it on my own, I might also - for instance - take on more window cleaning customers and service more properties...
I am not a native English speaker, I don't have a particular presentation knowledge or experience, and in the UK I have worked in the field of finance for only a stint of about half-year so far.
To me, preparing a business plan would be a huge exercise that would take plenty of my time and energy, and, most likely, also some money for delegating various tasks (movement studies, explanation videos, photos, drawings etc).
Wouldn't it be reasonable to first get some information that would help me decide whether such exercise would be likely to be conducive to obtaining any business loan whatsoever?
You don't need to have a whole song and dance act worked out. You need numbers on a spreadsheet. What are you making now and what does it cost you? What would it cost to buy the van and the kit? If you bought the van and kit how are you going to increase your customer base? A sketched out flyer with costs on getting it properly done and the cost for distribution?
But crucially - the initial spreadsheet with your numbers. If you could put that together I'm sure some business types would be happy to review to give you helpful, constructive feedback on how to present that to a bank or other potential source of money.
Which leads me to the idea - is there any grants you can apply for? You're not a native so is there a UK based society for your place of origin that might provide support. When I first came to the UK (many decades back) I discovered that there was a number of organisations that wanted to assist me as I was from a Commonwealth country. Now that I've been working here for a number of years there are groups I could go to based on association to my employment in the financial sector. It might not just be banks and credit cards that could assist you.
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