guaranteed business finance

terriS

Hi There

I need to raise about £25k for my business. is there any guaranteed loan companies fro business or indeed guaranteed assett finance.

We need to raise this money but our personal credit rating is !!!!!! and we have only been trading for 2 years.....

any ideas please

Thanks ever so much
T

jonesMUFCforever

Are you a sole trader or Ltd. Co.?

What do your audited accounts say about the net profits of the business?

inmypocketnottheirs

What are you raising finance for? It is to fund cost of sales or for capital? Are you looking to buy plant or equipment?

If you are supplying trade customers, and invoicing them on say 30 day terms, and it is just a case of funding the period between supplying the goods or service and getting paid, then invoice factoring could be a good answer. This means that you assign your invoices to a bank or financial company, they pay you say 70-80% of the amount and the balance when they get paid. It's a bit complicated to understand, but it works very well. You can get factoring with slightly 'adverse' credit as largely the debt is secured against the invoice and the credit worthiness of the business being supplied.

Give us a bit more detail of yur business, what you do, by PM if you prefer, and I may be able to make some suggestions for you.

terriS

Hi All

So sorry for the delay. It is Terris husband here.

We need to raise £25k to partially fund a new unit and for the deposit on the finance for a large peice of equipment. The equipment is a rolling road and costs £58k plus vat which we want to lease over 5 years.

Our accounts for the first year show a huge loss due to startup costs so it is quite easy to see why and now are 2nd year accounts are just being done at the moment but will show a small profit which means we have recovered the losses of the first year of trading.

We really really need help, I am honest and my wife and my family are the most important thing to me along with the business and you can see who we are on www.kaiperformance.co.uk

SO if you can help it would be fantastic, anybody, any ideas, any which way.
Investors, Angels, guaranteed finance, loansharks, mafia, drug dealers :rotfl:

inmypocketnottheirs

To be honest, now knowing a little more about your business, my earlier suggestion of invoice factoring probably wont be suitable. I say that because unless you are giving your customers (and they would need to be business customers not private) 30 day terms, then factoring wont work.

With regards financing the equipment, generally speaking suppliers have finance packages to offer. To fund the new unit, then approaching your bank would probably be your best first option.

If you consider bringing in an angel or an investor, they are going to want a fairly large chunk of your business. Have you ever watched Dragon's Den, where angels are often asking 40-50% of a business?

If you wish to PM me an idea of your turnover and profit/loss for the first two years of trading, I can have a look and see what other suggestions I can make.

Best of luck.

lawrie28

If you are not VAT registered then a finance lease would mean that the VAT is spread over the life of the agreeement, rather than a lump sum. You wont own the kit at the end, and will have to pay an annual "peppercorn" rental till you either sell or scrap the kit. And when you sell it a %age would go back to the finance company.

Can you find a used one? Will the suppliers offer a finance house a guarantee of buyback i.e. if needed they will buy the equipment back at a set price (determined at stages through the life of the kit) to reduce the risk of the money lender, who will probably not be able to shift this relatively specialist kit.

How much extra revenue will this generate for your business?