Cant Get A Loan, but not in debt, no missed payments?

Poshsalt

Hi,

I owned 3-4 businesses for 9 years.

Missed 1 payment in my life. Credit Score is Very Good.

Had £6k overdrafts on all my accounts and all banks are in positive. Have some savings.

I've had loans in the past from paypal £8k was paid before it was needed back.

Been with all my banks over 5 years. Born in UK.

With HSBC, Starling and Nationwide.

But for some werid reason, can't get a loan. The best is £10k, with a £5k interest, 4 yr.

After loan for equipment, expanding business.

Anyone else having problems?? Can't figure out why I cant get a loan.

Brie

Your credit score is only seen by you - the banks don't use it.  They look at your credit history.  So what's going on there?

Do you have a lot of small loans?  car and/or home insurance?  phone contract?  

You say you have £6k in overdraft but are you using it?  Have you in the past??

Credit cards?  You say you;ve only missed one payment.  Was that recent?  How much of your credit limits are you using?

If you have CCs even if you're not using them they create a risk.  Likewise an overdraft.  So a bank needs to look at that amount of risk plus all the little loans you might have for insurance etc and decide if they want to lend you even more than that.  They have no idea if you are going to max out your CCs and overdraft(s) and then have trouble paying back those as well as whatever loan it is you now want.

Have you tried going directly to the banks you current deal with?  They will be able to look at how you actually run your account(s) that you have with them and make a better decision about what they can risk lending you.

TheMilkmansDad

Business Loan or Personal Loan?

born_again

Poshsalt said:

Hi,

I owned 3-4 businesses for 9 years.

Missed 1 payment in my life. Credit Score is Very Good.

Had £6k overdrafts on all my accounts and all banks are in positive. Have some savings.

I've had loans in the past from paypal £8k was paid before it was needed back.

Been with all my banks over 5 years. Born in UK.

With HSBC, Starling and Nationwide.

But for some werid reason, can't get a loan. The best is £10k, with a £5k interest, 4 yr.

After loan for equipment, expanding business.

Anyone else having problems?? Can't figure out why I cant get a loan.

So any loan will be based on business books, not you personal situation?

Poshsalt

TheMilkmansDad said:

Business Loan or Personal Loan?

Tried Both.

Never had a loan ever before, apart from paypal.

Maybe Im asking for too much after £10k.

It was a business loan to expand business.

But I've tried personal just to see also nothing.

I wonder if its because i have 4 accounts but I have 4 businesses.

Hoenir

What security are you willing to provide? 

electriccactus

Personal loans will almost certainly have the requirement (among others) that they are not to be used for business purposes. If you're being honest what this is for when applying that could well be the reason for the declines there.

Business loans are another matter, but it seems they are willing to lend to you albeit at rates you're not happy with.

CliveOfIndia

born_again said:

Poshsalt said:

Hi,

I owned 3-4 businesses for 9 years.

Missed 1 payment in my life. Credit Score is Very Good.

Had £6k overdrafts on all my accounts and all banks are in positive. Have some savings.

I've had loans in the past from paypal £8k was paid before it was needed back.

Been with all my banks over 5 years. Born in UK.

With HSBC, Starling and Nationwide.

But for some werid reason, can't get a loan. The best is £10k, with a £5k interest, 4 yr.

After loan for equipment, expanding business.

Anyone else having problems?? Can't figure out why I cant get a loan.

So any loan will be based on business books, not you personal situation?

I think, from the information you've given, that this the crux.  If it's a business loan you're after, then the lender will be wanting to see your business accounts (assuming you're a LTD company).  Your personal finances won't come into into it - well, unless you've been declared bankrupt or suchlike, which would preclude you from being a director of a LTD Co.

But you need to be clear about whether this is a personal loan or a business loan.  You could try to lie on the application form and you might get away with it, but this route is REALLY not to be advised - the ramifications further down the line don't bear thinking about if you get found out and convicted of fraud.