If you get a loan from the bank for your limited company they will more than likely ask for personal guarantees to secure it. Having said that £20,000 is not a massive amount, especially if you have assets to secure it. Best to have a chat with a couple of different banks and see what they are willing to offer.

A lot of people at the moment are doing 'portfolio' funding, putting together a council grant with a bank loan, money from investors etc. to get what they need rather than getting it all from one place. There are quite a lot of small loans and grants available if you hunt around. I put together a list of funding sources recently which you might find helpful - http://blog.thecompanywarehouse.co.uk/2012/06/18/how-to-find-start-up-business-grants-loans-and-investments/

It sounds like an it would be a good business. Good luck with it!
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www.thecompanywarehouse.co.uk

You've put together a very useful list Peter. I Earlier this year I was in a similar situation and I talked to an advisor from Natwest. He was a very helpful guy but pretty much discussed what you had in that blog post.

As to thevoid's idea: 20k is not a huge amount of money if that is all you need to make a start then it would not be so hard to get it even if you need assets to secure it. Good Luck with it.

Regards

James
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Holland And Green Architectural Design - http://www.hollandgreen.co.uk/

<<<< As to thevoid's idea: 20k is not a huge amount of money if that is all you need to make a start then it would not be so hard to get it even if you need assets to secure it. >>>>

I'm not so sure of that as I have a sneaking suspicion that £20,000 in these circumstances will be rather difficult.

Banks and finance companies tend to value assets on a fire sale basis and a second hand sound system won;'t be valued very highly
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Ian