Bank lending

[energia-cinetica]

I am a new start up business and moved from the US to the UK two weeks ago, currently awaiting on my comany house registration.

I however will require around £15,000 either in the form of an overdraft facility or a loan to tie the company over for 3 months until I start receiving some of the money from contracts we have signed.

As of yet I have not opened a UK business bank account (awaiting on the ltd registration to come back) but without a credit rating in the UK does anyone know which bank would be more likely to assist with this so I can open an account with their bank.

 

[kontracta_com]

Here's a start for you:

http://www.moneysupermarket.com/BusinessChequeAccounts/CommercialChqAccResults.asp

This lists a vast array of business accounts and will give more details as to the levels of overdraft that you can (or rather hopefully might maybe) get as well as other features. Then it's probably best to try and speak to someone who isn't call centre based as you'll get better information relevant to your situation.

 

[kontracta_com]

Sorry the link doesn't work. Let's try again....

http://www.moneysupermarket.com/BusinessChequeAccounts/CommercialChqAccForm.asp

 

[Merchant UK]

I am a new start up business and moved from the US to the UK two weeks ago, currently awaiting on my comany house registration.

I however will require around £15,000 either in the form of an overdraft facility or a loan to tie the company over for 3 months until I start receiving some of the money from contracts we have signed.

As of yet I have not opened a UK business bank account (awaiting on the ltd registration to come back) but without a credit rating in the UK does anyone know which bank would be more likely to assist with this so I can open an account with their bank.

Hi and welcome to the UK,

Here in the UK the banks are not lending as much nowdays as they seem to want to continue paying themselves extortionate payrises and bonuses.

So as for asking for £15,000 with no credit history, even as a business is looking not so good.

Your best bet may be to use a factoring company to invoice your customers and pay you upto 80% of the total value of the contracts up front? Not sure how this would affect you, but you certainly would stand a better chance of obtaining funding this way than any other.

Good luck

 

[Tom McClelland]

Hi and welcome to the UK,

Here in the UK the banks are not lending as much nowdays as they seem to want to continue paying themselves extortionate payrises and bonuses.

So as for asking for £15,000 with no credit history, even as a business is looking not so good.

As someone (who like everyone else in this country) is now a reluctant part-owner of these banks I am very keen for them to be tight on their lending and make enormous profits. Loose lending is what got us to where we are today.

Even when conditions were at their loosest the chances of a new arrival in this country getting a significant loan for a newly formed limited company would have been zilch. If you have a good record in the USA your best chance may be to personally borrow the money from a US bank, and personally loan it to your company as required. Obviously that approach isn't great from a limited liability POV, because if the venture fails you lose your investment, but that is exactly why no bank would touch the investment directly. They have no protection against default and as a new arrival here you'll have no history and no collateral.

 

[Lease4Less]

Hi and welcome to the UK,

Here in the UK the banks are not lending as much nowdays as they seem to want to continue paying themselves extortionate payrises and bonuses.

So as for asking for £15,000 with no credit history, even as a business is looking not so good.

Your best bet may be to use a factoring company to invoice your customers and pay you upto 80% of the total value of the contracts up front? Not sure how this would affect you, but you certainly would stand a better chance of obtaining funding this way than any other.

Good luck

I agree with this.

All lenders will want to see a history of credit, which you so not have. Do you own a property in the UK? If you are a tenant it will make things even harder for you to get any financial help from any loan company. Do you have a detailed business plan? Do you have a customer data base with any orders or committments? Do you have anyone in the UK who can act as guarantor?

To get a bank to lend you money you will need to prove an ability to repay, and if you do not have any other financial links to the UK you will be seen as a huge risk as if your buisness fails what is to stop you simply going back to the US without repaying the monies owed?

 

[Merchant UK]

The real issue is that only say, 5 years ago, you propably had a chance to just walk in to a bank and come out £15,000 better off. After all £15,000 is not that much to borrow.

Nowdays, your more likely to to get £150,000 for a mortgage, than to get a small loan of £15,000 from the banks.

All the lies the last government said about putting the banks back on track, was a shambles, they are still doing it??

I would of been more than happy for the ones that paid themselves so much that they nearly bankrupted themselves, to of been made bankrupt, and criminal charges bought to the chairman and shareholders.

Instead of the Government paying Billions back to the banks, The government should of set its own bank up and lent to the people at a reasonable rate.

Can't see why a Private Company with Shareholders had to have Taxpayers money?

 

[jeffbearcroft]

There is very difference between the major UK banks in terms of lending criteria. They will all lend if they judge the opportunity as low risk.

But they will need to see some track record from what you have done in the US and will also need some additional security.

So, some questions for you:

1) Can your US bank provide a good reference on you?

2) Do you have assets such as property to pledge to the UK bank as security or to support a personal guarantee?

Regards

Jeff

I am a new start up business and moved from the US to the UK two weeks ago, currently awaiting on my comany house registration.

I however will require around £15,000 either in the form of an overdraft facility or a loan to tie the company over for 3 months until I start receiving some of the money from contracts we have signed.

As of yet I have not opened a UK business bank account (awaiting on the ltd registration to come back) but without a credit rating in the UK does anyone know which bank would be more likely to assist with this so I can open an account with their bank.

 

Ignoring the predictable 'bankers bonuses' type crap responses, the role of banks has always been (or should have been) to lend their depositors' / investors' / sharehoders' funds in a prudent and profitable manner.

A simple rule is - would you be comfortable borrowng from family and friends?

If you would, try them first, if not, what doyou have to offer a bank as security?