Startup Loan with bad credit

[FreshSandwiches]

I have pretty much finished my business plan, although I have come to a big halt due to checking my credit score.

I have 0 credit rating, this is due to missed payments on a loan which has been frozen and am in dispute with Santander, I am still being offered personal loans with my bank due to living in my overdraft and having the account with them for 32 years (whole life).

I need to get my business off the ground and need £20,000 to do so, will my personal credit rating affect whether or not I can get a business loan?

If so, what do i do, are there any companies set up to help people with bad credit start a new business?

Thanks in advance.

 

[Tom McClelland]

What collateral have you got to back a £20k loan? Do you know anyone with substantial personal property/wealth who will guarantee the loan? Do you have a track record of successfully managing business startups?

I would have thought that without a pretty resounding "yes" to at least one of those questions your chance of raising a £20k loan to start a business is negligible, even if your personal credit rating were decent.

I stand ready to be corrected if anyone in the know thinks I'm being too pessimistic.

 

[Paul_Rosser]

Have to agree with Tom I'm afraid, investors like either security (loan secured against house etc) or they like to know you have a good track record in building companies that make a profit. Without either of these it's friends and family time.

If the idea is a really good one you may be able to use crowd funding to raise the money.

 

[FreshSandwiches]

What collateral have you got to back a £20k loan? Do you know anyone with substantial personal property/wealth who will guarantee the loan? Do you have a track record of successfully managing business startups?

I would have thought that without a pretty resounding "yes" to at least one of those questions your chance of raising a £20k loan to start a business is negligible, even if your personal credit rating were decent.

I stand ready to be corrected if anyone in the know thinks I'm being too pessimistic.

Thanks Tom.

So even starting up a business is only the domain of the already wealthy?

This world is completely corrupt and only set up for the wealthy or rich.

You can't get a degree without having money, you can't get a good job that pays well without a degree and you can't even set up your own business unless you are already wealthy?

I can't win!!

There must be some kind of help?

The only way I would ever be able to become even slightly wealthy would be to work for myself, yet i can't even do that.

The rich get richer yet the poor get poorer.

 

[Tom McClelland]

Thanks Tom.

So even starting up a business is only the domain of the already wealthy?

This world is completely corrupt and only set up for the wealthy or rich.

You can't get a degree without having money, you can't get a good job that pays well without a degree and you can't even set up your own business unless you are already wealthy?

I can't win!!

There must be some kind of help?

The only way I would ever be able to become even slightly wealthy would be to work for myself, yet i can't even do that.

The rich get richer yet the poor get poorer.

I don't know how you derived all that from what I posted. And it isn't remotely true. Tens of thousands of "little people" start businesses every year, and many of them make a go of it. Perhaps you need to work out a lower-cost way of starting, or to stay in a job and start saving for your dream.

Plenty of us on this very forum have started successful businesses with no capital behind us, so you're wrong when you say that only the wealthy can start businesses.

And you can get a degree without having any money. Student loan repayments are after the fact not before it, and only apply to the decent incomes earned by successful people.

Why are you expecting someone to give you £20,000 with no fallback from their point of view if things go wrong. Remember, most business startups fail. Can you not see how unrealistic it is to expect that? How much are *you* proposing to invest yourself?

 

[FreshSandwiches]

You can only get a degree by having money, even before the now ludicrous fees.

I am speaking from experience, I tried it. I had to give up after a year, i had 4 jobs at the same time and still couldn't afford to feed myself properly, university is only for people who have support behind them, to say any different is just arrogant.

I am still paying off my loan now, my loan for one years worth of hard work.

I have already started a business on a shoe string yet my clients weren't sticking to the payment terms and i was getting behind with my rent and such..

My current idea requires purchasing of goods and the renting of a shop, thus i have to get a loan or wait 10 year to save it up.

Incidently do some research into FRACTIONAL RESERVE banking and how it works, banks don't have the money in the first place, so from their point of view they don't actually lose anything even if they get no money back...Money is FIAT currency.

 

[Tom McClelland]

Part of me wants to argue with you, but we're busy people and the debate is moving far beyond the purpose of this forum, which is to answer people's business-related questions. So I'm letting you have the last word there.

 

[Paul_Rosser]

Thanks Tom.

So even starting up a business is only the domain of the already wealthy?

This world is completely corrupt and only set up for the wealthy or rich.

You can't get a degree without having money, you can't get a good job that pays well without a degree and you can't even set up your own business unless you are already wealthy?

Lots and lots of people start companies with very little money and some of the best paid people I know don't have a degree, so not sure where you are getting that from.

If you want to start a business which requires a lot of capital from day one then you may find it more difficult and maybe should choose something which doesn't need as much cash to start as a means to raise the money you need for the bigger venture.

My advice would be purchase one bucket, one sponge and go wash windows or clean cars until you have enough money to bankroll your proper business idea.

 

[ethical PR]

You can only get a degree by having money, even before the now ludicrous fees.

I am speaking from experience, I tried it. I had to give up after a year, i had 4 jobs at the same time and still couldn't afford to feed myself properly, university is only for people who have support behind them, to say any different is just arrogant.

I am still paying off my loan now, my loan for one years worth of hard work.

I have already started a business on a shoe string yet my clients weren't sticking to the payment terms and i was getting behind with my rent and such..

My current idea requires purchasing of goods and the renting of a shop, thus i have to get a loan or wait 10 year to save it up.

Sorry fresh sandwiches but I have worked with some young people without parental support, who had no income . They were able to go to University by getting a low cost loan which doesn't need to be paid back until they are earning quite a decent wage and they were eligible for a non repayable maintenance grant and university hardship funds.

If you are paying off your loan you must be earning over the minimum threshold.

Yes life isn't always fair or equal, but if you face it with less than positive attitude you make it harder for yourself.

If you want to sell a consumer product sell it online then you won't then have premise and all associated costs. You can also sell it on market stalls.

Take a second job to save up funds to help with your business and so you can pay your loan off more quickly.

Find out from your local business organisation and council as to what support is available for start ups in your area.

Develop your business plan and develop your business in stages rather than trying to jump to a retail premises which is high cost to run and you don't know there's a market for your products.

I wish you luck but if you want to succeed you need a positive attitude and to help yourself.

 

[Chris Ashdown]

This guy has the whole world to blame and feels cheated, prehapse if he could only think more positive and get away from the world owes me a living senario

He mentions Degrees but what about the thousands of students sold a lie about their future and have £50,000 depts, a degree and no jobs, sad fact unrelated knowledge is a none saleable set of skills sold to them by expert saleteams in governments and the education establichment

 

[businessfunding]

Do you really want to saddle your start-up with £1,000 per month loan repayments?

1. Take the chip off your shoulder - they are only good in a butty

2. Think about what you have to offer, who can benefit from it and how to reach them

3. Establish a set of stepping stones to get you there by gradual growth.

 

[ITsoldUK]

Change your BM to allow you to start up without such a big cash injection OR get a job and save up...

Get a loan when you have already defaulted even with 99.9% security...forget it. AND you are living on borrowed cash in the OD. Hardly a positive profile is it?

Banks wont touch you with a barge pole even if you have had an account from birth

Sent from my GT-I9300 using UK Business Forums

 

[tony84]

You cant get credit because youve had it in the past and not kept on top of it (Thats in the eyes of lenders as things currently stand - based on your credit report). You either need an income to support it or a property to secure it against or ideally both.

I went to uni (only for a year but that was my choice) and my family are far from rich, both work and have normal jobs on maybe £20k a year. So your comments about uni are a load of rubbish, you also dont have to go uni to get a degree. There is the open uni an some colleges also do HND's where you can then go to uni for 1 year to top it up to a degree.

The world isnt against you but it isnt there to hand everything on a plate to you either. If you want it badly enough alter your business model or find a way to secure funding. Sometimes you have to work to get your business off the ground... imagine that eh!

I dont think many businesses need a £20k start up really. Start on a smaller scale, show there is profit in it then ask the bank once you have a year or 2s accounts. The "rich" people your slagging off are the ones who put money in savings accounts for the bank to lend out.

If they all kept it under their mattress we would all be screwed.

 

[businessfunding]

If the idea is a really good one you may be able to use crowd funding to raise the money.

I should point out that crowd-funding isn't a product, it is simply a 'flavour' of various types of funding - debt or equity

The bars to access crowd-funded products are at least as high as commercially-backed products - it certainly isn't a dumping ground for random sub-prime propositions

 

[Paul_Rosser]

I should point out that crowd-funding isn't a product, it is simply a 'flavour' of various types of funding - debt or equity

The bars to access crowd-funded products are at least as high as commercially-backed products - it certainly isn't a dumping ground for random sub-prime propositions

Totally agree but if you have a really good idea then you have more chance of getting some investment than going to a bank.

However as the OP doesn't seem to want money from the rich, or anyone with a degree this may limit his options a bit.