Personal Loan For Business Use?

[Toon]

Hi

I've took the plunge and have set the ball rolling for me to open my own unit :-) The Unit itself doesn't need much doing, maybe just a bit of paint here and there. I need some furniture, fixings and display stuff. I have around £20k (retail price) worth of stock at the moment and will probably need some more.

Now, I feel as though a small loan is needed, probably only £10 - £20k which I have no doubt I could pay back fairly shortly but wondered whether I was able to have a personal loan for this use or whether I need a business loan? Either way, who are the best people to see about this? I bank with Bank of Scotland Business.

[Joanne_UK]

Hello,

You cannot have a personnal loan for your business they will ask you to apply for a business loan (which is a lot more complicated).
But you could apply for a personal loan and say it's for something else (for exemple house improvement) they don't check what you are doing with your money...

I can recommend Sainsbury (http://www.sainsburysbank.co.uk/index.shtml?source=NETSAINSALLPFODD0001)
You have the answer online and the cheque in 24 hours !!

I hope this helps
Joanne

[Ozzy]

For the record, amoungst other sources I had a loan from Sainsbury's to start Quick up. At the time it had the lowest interest rate.
So you know, when I called to pay it off they offered to reduce the rate to keep me as a customer. The assumed I had got a loan from elsewhere to pay it off, so worth noting if you want to negotiate on the rate after you take the loan (if you do).

[Romperstomper]

of course Sainsbury's Bank is provided by Bank of Scotland so it is the same crew at the end of the day

[itdirectuk]

I obtained funding from Partnership Investment Fund. I managed to negotiate excellent terms from them, and there is a very useful scheme which may provide rebates on interest.

go to www.yfmgroup.co.uk

Hope this helps.
Dylan.

[ValenS]

When I first created the company, I was informed that any money invested into the company is essentially loaned (that is, the company owes me this money). All deposits into the business account were labelled 'Loan from <my name>' in the bank transfer description, as well as our business accounting records.

The business/company was a failed investment. It lost money every financial year it was running (next week we will be closing the company down). As such, it never 'paid' me anything (e.g. salary, Director's fees or dividends), nor was I an employee of my own business (only a Director). Does this change my circumstances or eligibility at all for claiming back this interest?