businessbloke started this topic @ 14:41 on 31/10/2005
Hi there,
I'm in a bit of sticky situation here. Firstly, i will give you a summary of my situation:
- No Assets, Rented out (Had to shed out 6 months rent up front)
- No credit History
- New business (ltd company) - only been trading 4/5 months - hence only 2/3 months of accounts.
- Brilliant business plan, that will guarentee to work, and make me, the bank alot of money.
- I would like credit of around £5,000 which i will help me invest in more different types of stock, which will grow the business, and give me more working capital
I did apply for a loan and overdraft for my business account at natwest bank, but i was declined, and said they might be able to give me a £500 overdraft. They didn't even look at my business plan, and i even gave them a financial guarentor with their bank details!
I've been looking to apply for credit cards, possibly applying for loans, and hoping someone would accept me. Currently, i use my father's mastercard to make purchases, but i'd rather not, i want the business to be indepenant, i don't want to reply on other people's cards.
I'm 100% confident, with around 3,000 to 5,000 i can boast the companies profits instantly. But i need somewhere to offer me a loan? Where
Martin
RE: How to borrow Money without A Credit History and no assets?
James Smith | 31/10/2005 03:46 PM
It sounds like you will have to tap family and friends if you have no funds yourself. You arnt after enough for any other source if your bank has already turned you down. You could try £1,000 from several sources rather than the whole amount from one person.
You family will know your history and why you are unable to come up with such a sum personally.
NB I have never yet seen a "bullet proof" business plan. I would tone down the confidence as it will put most investors for.
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
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RE: How to borrow Money without A Credit History and no assets?
mattcaulfield | 01/11/2005 12:05 AM
Hi Martin
What you have to consider is banks meet alot of people in your situation who come in and the first words from their mouth are "give me X amount money and i will double my profits"...this very rarely works in reality, even on paper there are no guarantees.
What i would suggest is 100% stay away from credit cards, they are more hassle than they are worth, secondly i would suggest seeking advice from your local business advisors centre...they will be able to give you the options and tell you straight away if your idea will work as well as you say it will, they will also be able to give you other funding options such as the Princes Trust and other government funded schemes for new businesses.
As a last resort if your family are willing and able, perhaps they might consider adding £5,000 to their mortgage and have you pay that off for them....you could then spread that cost over say 10 years so the payments are low....for £5,000 your probably talking less than £70 a month.
