Struggling To Get A Loan-Advice?

RogueRose87 · 18 January 2019 at 2:16PM

Myself and my partner are about to sign paperwork to purchase a lease on a public house. He thought he could come up with all the money but he only has £9000. I need to borrow £7000 from somewhere to make up the rest. He can't borrow as he had bad credit years ago after some personal problems (he is fine with managing money now).

I have good credit, but I only work part time at the moment and only share rent. So all of the loans I have been applying for online are turning me down because I assume my pay is too low and I don't have a mortgage.

The annoying thing is when we get the pub I will be taking home after all the bills are paid £500 approx and I will be able to pay the loan back in no time. Is it worth asking my local bank TSB (who I bank with) for a business loan, if I show them my business plans, the pubs accounts and solicitors letters etc. will this be enough proof.

I'm really starting to lose heart. Can someone please advise? I may not be able to answer questions straight away as I have a business meeting this afternoon with the brewery. Also sorry if I have missed any information out, please let me know if I have.

DCFC79 · 18 January 2019 at 2:23PM

RogueRose87 wrote: »

Myself and my partner are about to sign paperwork to purchase a lease on a public house. He thought he could come up with all the money but he only has £9000. I need to borrow £7000 from somewhere to make up the rest. He can't borrow as he had bad credit years ago after some personal problems (he is fine with managing money now).

I have good credit, but I only work part time at the moment and only share rent. So all of the loans I have been applying for online are turning me down because I assume my pay is too low and I don't have a mortgage.

The annoying thing is when we get the pub I will be taking home after all the bills are paid £500 approx and I will be able to pay the loan back in no time. Is it worth asking my local bank TSB (who I bank with) for a business loan, if I show them my business plans, the pubs accounts and solicitors letters etc. will this be enough proof.

I'm really starting to lose heart. Can someone please advise? I may not be able to answer questions straight away as I have a business meeting this afternoon with the brewery. Also sorry if I have missed any information out, please let me know if I have.

You say he had issues years ago but how many years ?
He should especially check his credit rating via the 3 agencies but remember the score is only seen by you, lenders see the history. In fact you should check your reports too especially if looking for a loan.

So your wanting to buy a lease for a pub, can you even use personal loans for this purpose, maybe you should check it's possible.

How do you know how much a loan would cost each month ?
The payments could be £600 a month.

Do you have experience of running a pub ?
It's hard, just going by what I've read on here.

Do TSB do personal loans ?
If they do then no harm in asking.

dealer_wins · 18 January 2019 at 2:24PM

You definitely need a business loan, for which you will need a full business plan, show that you are putting in over 50% yourselves etc

As lending for pubs is on the risky end of things, you may even need to be putting up more than 50%.

RogueRose87 · 18 January 2019 at 3:13PM

Thank you for the reply. I think my best bet will be asking the bank for a loan whether it be a personal or business loan. I have ran a pub before but it wasn’t mine, I just managed it. Also the landlord at the moment is a close friend so he’s going to help me get settled in etc.

I will make an appointment at TSB on Monday. I can get a loan with a guarantor but the interest is wild. I would be paying back just over double the amount. Also I wouldn’t mind paying back 600 a month, I just really don’t want a huge interest rate. But the way it’s going I might have to suck it up and take it on the chin.

RogueRose87 · 18 January 2019 at 3:17PM

I am going to make an appointment on Monday with the bank for a business loan and see how it goes. It’s just proving that I am capable of paying the money back. I have the pubs accounts from the last three years and we have done our projections. So I’ll take all of the business plans and accounts. Thank you for your reply.

DCFC79 · 18 January 2019 at 3:29PM

RogueRose87 wrote: »

Thank you for the reply. I think my best bet will be asking the bank for a loan whether it be a personal or business loan. I have ran a pub before but it wasn’t mine, I just managed it. Also the landlord at the moment is a close friend so he’s going to help me get settled in etc.

I will make an appointment at TSB on Monday. I can get a loan with a guarantor but the interest is wild. I would be paying back just over double the amount. Also I wouldn’t mind paying back 600 a month, I just really don’t want a huge interest rate. But the way it’s going I might have to suck it up and take it on the chin.

As it's for the lease a business loan might be the only option.

iolanthe07 · 18 January 2019 at 4:49PM

If the pub is tied to a brewery, might they not help you with a loan?

dealer_wins · 18 January 2019 at 5:09PM

Word to the wise, dont take what your "friend" says as gospel, he wants to sell, he wants out and wants your £££ so he is only going to tell you what you want to hear.

Get it looked over by a impartial professional!!!

Struggling To Get A Loan-Advice?

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