Business loan with bad credit

[LunaL]

I want to start up an embroidery business that focuses on personalised embroidered gifts and keepsakes. I have pretty much finished my business plan, although I have come to a big halt due to checking my credit score. I have 270 out of 700 credit rating.

To get my business off the ground I need £8000 to do so, will my personal credit rating affect whether or not I can get a business loan? I have been looking at Goverment funded Startup Loans.

 

[Virtual Reality Hire]

Try Startup Loans as they will consider more than just your credit score. If you have a solid business plan then there is a chance you will get funding. But make sure you are able to afford to pay them back in your business plan.

 

[Mark T Jones]

Start up loans won't look at your credit score, but will consider your credit history - so it really depends on the factors bringing the score down

 

[LunaL]

I have £1498 on a credit card and £787 on a catalog.

Positive factors on my report

• You have no Court or Insolvency data
• You have no accounts in Default or Repossession
• You have held at least one of your accounts for several years
• You have very few / no accounts in arrears
• Your current Telecoms balance is relatively low

Negative factors on my report

• You have made more than a few applications for credit in the past year
• You have exceeded your credit card limit several times in the past year
• Your total credit card % utilisation is relatively high
• Your total mail order % utilisation is relatively high

 

[Mark T Jones]

Assuming you aren't aware of any defaults, judgements or other significant events, the only thing I would flag here is high balances - do your cashflow projections illustrate that you are able to service the repayments?

 

[Chris Ashdown]

What embroidery machine are you considering using,, I ask as they are all long life machines ranging from 6 needle to 15 needle. there are normally plenty of second hand ones on ebay and if you figure in say £400 you should get it serviced and have many years use fro it without any problem. Service is the largest cost as most mechanics seem to be situated in the Nottingham area or London so drive time to visit builds up the costs

 

[Chris Ashdown]

Many embroidery suppliers offer lease terms for new start-ups for the machines, nut be prepared the market is crowded and very hard to make money with one machine as everyone has chased the embroidery down to silly prices, We charge £2.50 +vat for a breast size logo and no artwork charge yet others are in the £1.50 range, so you either need to supply the garments as well or buy say 48 heads and do contract work

 

[alex@novacommfinance]

Can you breakdown of the purpose of the £8k?
There are finance providers who will offer solutions for start up businesses based on any assets/machinery/equipment being purchased rather than an any purpose lump sum loan like Start Up Loans company.
The Start Up Loan company do verify your credit rating before progressing further in the application process.