2 days to find 10K

[Mantzy]

Basically the title says it all. My personal loan I took out to finance the 50:50 ratio for my bank to give me the remaining 50% has 2 days before the 14 day cooling off period runs out and I can't return it. Having spoken to the bank, they have now decided that they won't offer me the remaining 10K so I'm now stuck between a rock and a hard place. I can't get the business going on just 10K (machinery, rent and living costs would cost too much - i'd have nothing left to advertise).

I'm currently with HSBC, and I've been turned down by them, Northern Rock and Smile so far. I also rent so I can't put a loan against a house or anything so it'd be an unsecured loan i'm after paying it off over 10 years. I'm off into town now to speak to the remaining 3 of the big 4 to see if they can do anything.

Does anyone have any ideas as to what I should do?
Cheers
R

[crus]

Hi,

What assets do you have to secure finance against?

Have you tried friends and family?

You have 10k how far does this get you, can you run without some equipment until some revenue kicks in?

What about selling part or half the company?

D

[Plastics Dave]

What kind of business? Maybe a competitor is looking to expand and this would be an easy way to get a start as a partnership. If you have already sunk the first 10K into the business and not yourself then someone should consider it worth a punt.
Regards
Dave

[creacom]

Hi

Ok, How old are you ?


Jacqui

[Mantzy]

Unlikely there are any competitors that are of equal size but worth a look, I'll try that if it all hits the fan. Not sure I'd be much good working with a partner just in case we don't see eye to eye how the business should grow.

I'm 24 by the way. Why you ask?

Got meetings with other banks tomorrow so will have to see. Might give a business angel a bell too (cheers Anne)

R

[creacom]

Why dont you try the Princes Trust ? They give grants to people who are starting up and are under 30 ? They can also help you with your business plan. Of course you wont get it in 48 hours but its by far the most realistic route to take.

They are great there so dont hesitate to get in touch with them.

http://www.princes-trust.org.uk

Jacqui

[Mantzy]

I've already been turned down by the Princes Trust because I was able to raise some finance by myself so in their eyes not a "worst case" customer. They were the first people I tried.

[creacom]

And have you tried your local enterprise agency ? They dont care if you can find some of the money for yourself.

Jacqui

[Rob]

Having got your personal I can see that the thought letting it lapse is a difficult one. The key though is whether you can afford to starting paying the loan back without getting the business off the ground.

If you can’t, then without the second half of your funding in place, you are placing yourself at risk – at risk of not being able to meet your first installment which will not do your credit history any good.

You cannot rush into financing your business. Even if you have a few appointments with banks lined up realistically it will take a minimum of 3 weeks to get all the paperwork sorted out for your business loan. That is cutting it tight with the first repayment on the personal loan looming.

I would recommend taking a step back and let the personal loan offer lapse (you’ve got it once so no reason you won’t get it again). I guess your loan application was for a replacement kitchen, or new car or something like that? If it was just say you are in the process of re-negotiation a better deal and that’s why you want to delay. This will give you time to prepare your case for the Bank in the form of a Business Plan and so at least you start on the right foot.

Before seeing other Banks have you asked the question as to why the other Banks turned you down? If you don’t know this then you may be repeating one fatal mistake with all of them. Call up the other banks and find out and if it’s possible put it right

Once you are getting good signals from the Bank, stick your personal loan application in again and off you go.

[VeryMark]

I can recommend Whiteaway Laidlaw, a small bank but part of GUS, and friendly, helpful and flexible, no call centre, and plenty of experience.

Their local manager to us who I know well is Gareth Evans - phone him on 0121 585 8599 or 0775 3690188.

[winton50]

Would the small firms loan guarantee scheme not apply here?

for loans under £100k and people who have already been turned down by a high street lender?