Any Advice on Loan Companies

bobb42 · May 27, 2009

Hiya I am looking for a business loan, and have been refused by my bank, my company has been trading for 16months and my accounts for the first year show a turnover of £63,000,

I have mainly been selling on ebay and now am lauching a fully e-commerce web-site, I have my bank merchent service in place,

I am looking for a loan of about £15,000 but my bank declined, there is NO adverse data against my company.

I found many companys online that say that they have a 100% success rate of finding loans for clients, but I dont know whether they can delivery, I dont want my company to be bombared with credit searches as that might have a negative affect against future lending.

Could any one please point me in the right direction to obtain a unsecured business loan.

Many Thanks
Bob

cycloneuk · May 27, 2009

You will need to speak with your bank since most company loans over £3000 will require a personal guarantee which means should the company be unable to repay the loan then you become responsible.

Deliberator · May 27, 2009

Bob, you say your bank has refused you, but what about the other main lending institutions ?

Gillie · May 27, 2009

bobb42 said:
Hiya I am looking for a business loan, and have been refused by my bank, my company has been trading for 16months and my accounts for the first year show a turnover of £63,000,

I have mainly been selling on ebay and now am lauching a fully e-commerce web-site, I have my bank merchent service in place,

I am looking for a loan of about £15,000 but my bank declined, there is NO adverse data against my company.

I found many companys online that say that they have a 100% success rate of finding loans for clients, but I dont know whether they can delivery, I dont want my company to be bombared with credit searches as that might have a negative affect against future lending.

Could any one please point me in the right direction to obtain a unsecured business loan.

Many Thanks
Bob

Ok you say turnover is £63k but what is your profit like?? ie can you show affordability to repay the loan after all else has been accounted for??

bobb42 · May 27, 2009

Deliberator said:
Bob, you say your bank has refused you, but what about the other main lending institutions ?

I havent tried other institutions as yet, I thought if my bank wont lend to me I migh have to go Sub-Prime?

bobb42 · May 27, 2009

Gillie said:
Ok you say turnover is £63k but what is your profit like?? ie can you show affordability to repay the loan after all else has been accounted for??

My Profit was £7500, But I have used some of that for my Web Development ect,

There is not a problem with my credit history ect,

Deliberator · May 27, 2009

bobb42 said:
I havent tried other institutions as yet, I thought if my bank wont lend to me I migh have to go Sub-Prime?

Banks are notoriously rubbish when you want something from them

Try Business Link as they'll have reams of instituions that you could approach, as well as details of any low interest loans you may be eligeable for or indeed even some grants !!

Steer clear of any risky lenders who'll charge you high rates.............if you can't get any money from anywhere afetr an exhaustive search, try friends or family.

GMCCMatt · May 27, 2009

There are government backed loans available to companies who have been refused credit by high street banks.

The Community Development Finance scheme (funded by BERR) is one example, details of which can be found here. CDFA.ORG.UK

Other regional schemes exist, for the NW info can be found on the NWDA. nwdabusinessfinance.co.uk

Contact your local RDA or Business Link for regional schemes in your area.

edit: can't add links because i'm a new poster

Gillie · May 27, 2009

bobb42 said:
I havent tried other institutions as yet, I thought if my bank wont lend to me I migh have to go Sub-Prime?

Only one problem with you approaching each lender one by one in that one has refused you so might the second therefore the third and fourth won't even consider you.

One of the good things about using brokers is that they know who is the best one to approach for your circumstances thus meaning you won't have lots of big black crosses on your file!

bobb42 said:
My Profit was £7500, But I have used some of that for my Web Development ect,

There is not a problem with my credit history ect,

Ok so you have £7.5k left, did your figures include drawings/wages etc? As the loan you are looking for would mean some £4k a year repayments, therefore not in the comfy zone of most lenders.

Deliberator said:
Banks are notoriously rubbish when you want something from them

Try Business Link as they'll have reams of instituions that you could approach, as well as details of any low interest loans you may be eligeable for or indeed even some grants !!

Steer clear of any risky lenders who'll charge you high rates.............if you can't get any money from anywhere afetr an exhaustive search, try friends or family.

Ok so you want banks to lend without considering the risk involvement?? Isn't that why we are partly in this mess called the credit crunch to start with, ie reckless lending ... make your mind up time!

Christiane · May 27, 2009

Banks!?! I applied for a business credit card, was rejected but they happily agreed to double my overdraft!!! Dog only knows!

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