can't get a loan but own a house

Grumpy_chap

monkey74 said:

I desperately need to release funds backed by my house (worth only £35k - yes it is cheap - it is Durham) however my past income doesn't come up to scratch. The thing is lenders seem to think I should care that I might lose my property if I can't keep up with repayments, so they won't lend. I don't care, take the house! But it won't happen anyway because soon I'll be rich, but I can't get to that point for the following reason.

I created a construction company with a friend in May, and my friend and I went abroad and we have recently signed contracts with an existing company in that country for a multimillion pound construction project, which the British embassy are very keen to support. However my company needs to upgrade it's status with that country's authorities, and buy a vehicle this can only been done with around £15k. My business partner has no funds, I have no funds, he won't ask others in the company for fear of looking like an idiot.

I need the money in a matter of two weeks, not 2 months which is what will take at least, if I sell the house, even though I already have someone that wants to buy.

Any ideas?

Like others, I did initially read that this could be a scam.

Setting that possibility aside, I don't think the OP is in a position to raise the £15k needed to purchase a van for use in the Philippines.

As a minimum, the OP should be looking for the other business partner to provide half the capital that the business requires.  There is no reason that the financial risk should all be borne by the OP.

There may be potential for the business to raise the finance if there is a developed business plan in place. 
Even better that there are apparently signed contracts in place.  
I still suspect that the business will be unable to secure finance from regular lenders, but a good business plan and substantial order book may be able to secure finance from an "Angel" investor - either shares in the business, enterprise investment, or peer-to-peer lending.

The OP has not demonstrated in this thread that they have sufficient to satisfy an alternative finance partner.  Most still require that the business owners / Directors have a track record of some sort and have also put their own finance in to some level to demonstrate their confidence in the business.  It is not clear that the OP or the OP's business partner have done this.

I looked at the links provided:

monkey74 said:

https://www.dof.gov.ph/uk-launches-british-investment-partnerships-for-sustainable-development-in-ph/

It is very hard to see how a start up business with very limited funding in place would be able to satisfy the pre-qualification for projects of that nature.

Even the approved PCAB status that the OP gave details of:

monkey74 said:

The approved status is something called PCAB

https://www.tripleaaaconsultancy.com/post/what-to-know-in-applying-for-a-pcab-license-2022

Sets out several requirements:

1. DTI Certificate

2. BIR COR.

3. SSS Registration Certificate

4. Philhealth Registration Certificate

5. Pag-Ibig Registration Certificate

6. Latest ITR /Audited Financial Statement

7. Tangible Asset - Proof of Ownership

- Money in the Bank

- Land /Building Asset

- Transportation Vehicle /Equipment

- Construction equipment / machineries

8. AMO Seminar / AMO NBI

9. COSH Seminar for AMO and STE

10. STE valid PRC ID and NBI

I assume the vehicle is to satisfy requirement (7)?
How are the other requirements being satisfied?

Scroll down that link for the PCAB, and the minimum financial net worth is 2 million Philippine Peso - about £30k sterling.

I suggest that the OP stops and takes a breather before getting so excited on the "what ifs?" - once the OP fully understands all the requirements and builds a business plan, then it will be possible to suggest ways to approach any possible finance routes.

Herzlos

monkey74 said:

The local authroities are not insisting that we need a vehicle, the manager is, and I agree, car rental and petrol is £50 a day and its killing me.

Given you don't have the money, then why is the manager pushing for it? Renting seems to be the best option.

Surely if you're working on a Government contract building dams you'll be able to justify £50/day in vehicle rental? You'd need it for 300 days to get to your £15k and you'll be rich by then.


This does sound like a scam, where someone is trying to pressure you to send £15k to Manilla via some anonymous transfer option, so I'd be very careful.

What are you guys able to provide that established companies can't? Why are you going all the way from Durham to Manilla to work, when they could hire locals for, what, 25% of the wages?