£25k loan needed please help

wellywells

I think you are all maybe getting a little carried away with this. The company in question is called group20, look at the website www.group20.co.uk, it is a sister company to vehicle options which is the biggest privatly owned vehicle brokerage. It certainly is not a pyramid scheme nor has it anything to do with timeshares etc.
Basically members will pay for one years membership to drive a variety of supercars with up to 60 days of the cars per year. Its the same as all the others such as ecurie25, seahaven, and P1. Except it does'nt have a points system of any kind just a fair usage policy.
The company do sell it themselves and they are based in kent, but what they are doing it is franchising it around the country to get a nationwide netowrk of clients, and rather than members having to have to cars delivered or drive to kent to pick them up, they will have regional centres that the cars can be picked up from. Also as being in the club people will get invites to prestigous events, and have the opportunity to meet other like minded people.
So it is certainly not any kind of scam or pyramid scheme.
Its a legit business in supercar hire if you like, but it works out a lot cheaper than owning and running one with the benefit of changing to many different supercars.

And like any business obviously to earn good money is going to take an awful lot of hard work and time.
The club itself is aimed at individuals who have a large disposable income who believe in living for today. It also has schemes for the corporate side for companies to offer as an incentive, or potential clients etc.
The other part of it is if a group of mates want to join they can join as part of a syndicate and all chip in say £3k and get the same benefits.

I hope this has explained things a little clearer

mrmajika

It's similar to the scheme I described to be honest. The company website looks professional and I don't doubt that it's not a scam. Neither I nor anyone else on the board in any position to judge, we just have genuine concern.

Do you have any background in sales at all?

I am currently in (loan) sales and have a background in sales. I consider myself to be very good at it and have a persuasive nature which allows me to perform well.

Having said that, I would imagine I would struggle to sell these packages at £15K in the first year for a personal membership.

Do you have any idea of prospective clients? The franchise may give you some limited help, but essentially you will be on your own when selling these packages, and, if you can't, you will lose your money.

wellywells

I am currently in the building trade at the moment which requires some sales skills and I used to sell insurance years and years ago. So strictly speaking no, but I feel I can turn my hands to most things.
In regards to prospective clients the company has aquired the potential client list of those with the income and desire to join such a club. For instance i would hold an event somewhere and take say 5 or 6 of the cars and the company would invite potential clients to come along look at the cars and dscuss the club.
They have only been running for 1 year so are the youngest of the 4 big supercar clubs, however in the first year they are already the 2nd biggest group in regards to size, fleet of cars and members. So I imagine there must be a market for this type of business otherwise they would'nt exist or survive. And bearing in mind they have got £7 million of investments for the cars alone goes to show their intent surely??
I personally am very interested in cars, and if I were in a position and had the income to buy a membership, I would do.
I completely agree that it is a high risk investment but then that is proabably why the rewards are fairly high

mrmajika

The best of luck with it. :beer:

foreign_correspondent

hmmmm its a risky investment and its not like you have a spare 25K laying around to chuck at it... so if it goes belly up you will have incurred a large debt which you will still have to service - to be honest this sounds unwise to me, and is probably the reason you have been advised not to write a business plan but to go for a home improvement loan...
a business plan for this sort of investment would be a waste of time as it is not going to convince any sensible lender... if the bank will not invest in it, then what makes you think its a good bet?

wellywells

I have not been advised by anyone in the industry to go for a personal loan, its just been from friends who have done business plans and said they jumped through so many hoops, did great business plans just for the banks to say no. I have just been told that they are incredibly difficult to get and wastes an awful lot of your time for them just to say no. So no the bank has not said it is not interested in investing, I have'nt gone down that route thats all.

And in regards to banks not investing in it, and I am not being defensive here its just a point. Why would several different financial organisations of given the company £7million to buy the cars if they felt it was'nt a viable business.
Do you think a bank would lend that sort of money for something which has no potential to earn money??

iolanthe07

You'd still be lying on the application form for the loan, though.

foreign_correspondent

look, you are obviously going to go for it anyway. I could respond to why, or how, the banks could have lent them money, but you have made your mind up.
I have no other agenda than the fact that, in all honesty, this 'businesss' is ringing alarm bells for me. If it isnt worryng you at all, then go for it, and good luck.

wellywells

well to be honest I have not come on here to talk about whether or not its a viable business option, I have done my research and I believe its a good prospect. I have simply asked the question is there any lenders that have a higher acceptance than others. So can we get back to the question asked please, whether or not you agree with it or not

mrmajika

To go back to your original question then. To get best rates like the 6.9 for which you have applied, you will have to have a spottless credit record and low borrowing already. Because you have £25k of unsecured debt already, you may not get accepted by a low risk lender. There is no one company that has a higher acceptance.

The higher the interest rate, the higher the chance of acceptance. The lower the interest rate, the harder it is to be accepted for the loan.

A good starting point would be your existing main bank account / building society, who you have your current account with.