Business Loans ??

jonesMUFCforever

Be reasonable here - you stand very little chance of getting a busines loan when a) you don't seem too sure how much you want and b) you have only been in business for one month.

Build your business up slowly (there will be times when you don't sell anything for weeks!).
Your other alternative is to try and get a partner in willing to inject some capital.

Mark7799

1. You will need a business plan - speak to a business advisor or contact Business Link for guidance on this. This means doing some work - there is no quick and easy short cut here.
2. If you are asking for finance for what sounds like a stocking facility, an overdraft may be a better bet than a loan in any event. Even so, with you business plan, work out how much you need to raise and don't look to the bank for more than 50% of it - the Banks will expect to see you are making some contribution yourself.

If this means starting slowly untul you've built up enough reserves yourself then so be it.

dave1223

How does an overdraft work? Can you get them for 10-20k??

Also i have 10grand to put up myself so would they lend me another 10? Dont really know how it works.

What other options do i have here? What about Personal Loan?? Would this be Possible??

Thanks Peeps

dannynixon

Well if you need to borrow 10k or 20k from the bank, there is absolutely no way you will get an overdraft for that sort of money. They will give you an initial offer of something like 100 moving up to 2k (Halifax with me anyways).

If you have 10k, why not use this?

I think you are being unrealistic and silly with your estimations and predictions. You sound like such a high risk borrower. I do not think a bank will touch you.

sassybooboos

as you have 10k already.
i would do a business plan and try for 10k as i could only get the bank to match what i was willing to put into business myself.

do take into account that loans are harder to get now so you might get turned down.

why dont u just use your 10k and build it up a bit slower, the interest on loans from banks are so high. why put money into their pockets when you dont really need to.

what would happen if there was a recession and no one was buying your cars, would you be able to pay your loan back.

good luck!!!!!!!!

dave1223

First of all let me say why am i being unrealistic.

I am using the 10k i already got but like i said im looking to expand. I need to buy more cars as im selling out too fast.

The thing with cars is that you keep re-using the same money and just living off the profits

i am not high risk at all

i do agree though about the recession but whats the likely hood of that? Is it really gonna happen or is it just speculation?

And you say its harder to get a loan now is this because of the talk of recession?

What other options do i have as i need to buy more cars! 10k isn't enough

What about remortgage the house? Or is this a bad time also for this

Sorry to sound so dumb.. but i am young and not too clever with banks,,, loans ect,,,,,

jonesMUFCforever

Can you not get credit from the places where you buy the cars from?

You might think that after one month you are doing alright but what about next month and the month after - if a recession comes where will your customers get their money to buy cars?

You need a business plan - see an accountant or local council business adviser.

You say that you are not high risk - I have to disagree - what if you get a loan for £20k - what is to stop you doing a flit??
Do me a favour and humor me - go to your local library and ask to see their archive of local newspapers (ones with garages that advertise in them) and check how many similar establishments are still trading from 12 months ago, 18 months and 2 years.

I don't wish to be unkind but your type of one man band carsales come and go at regular intervals.

pcplum_2

hi,

Please dont overborrow and make the mistakes I did, all to quickly the situation can change and you are left with nothing but stress, banks on your case all the time leaving you no time to focus on your business.

You are being sucessfull at the moment which is great, but please take your time. I understand your need to expand but its too soon, wait until you have been in business for at least a year and can show the banks that your business it worth taking a risk for, I wanted it all too soon and fell flat on my face -wont necessarily happen to you of course but please be careful, you never know what is round the corner.

Good Luck xx

dannynixon

I honestly just think you need to slow it down a little bit. Why not build it slowly and stick your 10k in ISA's until you are ready to spend it?

Or, why not spend 10k and build it up like that? How much roughly are the cars you are looking to buy? 2k? 4k?

dave1223

I am already using the 10k.

Is there going to be a recession??