Personal Debt & Business Loans

Your ability to service the business loan will be a factor in any loan requirements but the structure of your investment of £9000 of your own money and a well serviced loan would be viewed favourably, more so than no stake of your own money. The whole basis of the DTI backed loans is to proivde start ups with capital which they cannot get from any other source ie no security etc so I suggest you just go for this as it stands. A recently paid off loan will show up on any credit search anyway!
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Lee Schwartz Lime One Ltd www.limeone.com 01244 852550

Thanks for your reply - makes me feel a little better <s>. I have another question which is linked to this, if you dont mind. We are trying to decide which is the best situation to go in. My partner has no debt and a good credit rating (opposite of me). Is it best to; a) Attempt to get a loan under my name b) Attempt to get a loan under sarahs name c) Get a loan as a partnership (how does this work, joined credit ratings?). We have no problem signing contracts or trusting each other during the initial startup phase, and will obviously sign something once its up and running if it ends up entirely 100% in one of our names to start with. As a bank, what would they prefer? I am guessing it would be better in sarahs name totally until we are settled? But does this mean I wont be able to go with her to the bank? I have tried to find general info about this, but have come up stuck with actual facts of what happens when you head off to the bank! Any help much appreciated. Thanks, Paul.

You would need firstly to decide whether you were actually forming a business partnership or whether Sarah was just providing the funds. Once you have decided that let me know and I will take you through some furhter possibilities. I would also get a credit report on your name and see what your scores are, using Equifax will give you some idea on the type of score you have, and if you are living together then your address will be joined with Sarah's anyway and some of your details will appear on her credit record so get her to ask for one too.
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Lee Schwartz Lime One Ltd www.limeone.com 01244 852550

I would definately use your savings to get out of debt. You are bound to SAVE more in interest payments, than you would EARN in interest from your savings account. Plus, you will be starting up a new business without any debt at all. Not a very good start to be £8K in debt on your very first day...