Business Loans

[Deleted member 305583]

Good evening everyone

I am currently in the process of trying to secure a £38000 loan for my brand new website business.

Most loan companies require you to begin repayment of the loan within the first month of you borrowing the money. However, new businesses are not expected to generate great income in the first year, therefore i should not be burdened to repay a hefty loan cost each month upon me receiving the loan.

Does anyone know of any companies who offer a 6-12 month honey moon period where i am not expected to begin repayments until 6-12 after i have received the loan. This is more practical, as i am able to save enough money during this time to prepare for loan repayments 6-12 months later.

Can anyone introduce me to a loan provider who can meet these requirements?

I need to secure a loan asap to start building my business.

I currently have a pending application with the 'Samuel Wilson Loan Trust' charitable organisation.
However, there is only a 50% change that my application will be successful.
Therefore, i do not want to put all my eggs in one basket and rely solely on Samuel Wilson to give me a loan.

In the meantime whilst my application is pending, i wish to explore other funding alternatives for my business including other unsecured loans, crowd funding. peer to peer lending and very last resort equity.

Please can someone get back to me, as this is an urgent matter.


Thanks

 

[Mr D]

Good evening everyone

I am currently in the process of trying to secure a £38000 loan for my brand new website business.

Most loan companies require you to begin repayment of the loan within the first month of you borrowing the money. However, new businesses are not expected to generate great income in the first year, therefore i should not be burdened to repay a hefty loan cost each month upon me receiving the loan.

Does anyone know of any companies who offer a 6-12 month honey moon period where i am not expected to begin repayments until 6-12 after i have received the loan. This is more practical, as i am able to save enough money during this time to prepare for loan repayments 6-12 months later.

Can anyone introduce me to a loan provider who can meet these requirements?

I need to secure a loan asap to start building my business.

I currently have a pending application with the 'Samuel Wilson Loan Trust' charitable organisation.
However, there is only a 50% change that my application will be successful.
Therefore, i do not want to put all my eggs in one basket and rely solely on Samuel Wilson to give me a loan.

In the meantime whilst my application is pending, i wish to explore other funding alternatives for my business including other unsecured loans, crowd funding. peer to peer lending and very last resort equity.

Please can someone get back to me, as this is an urgent matter.


Thanks

The bank / company lending money isn't sure they are going to get any money at all so expect you to start paying back after a month.
If you want time period to start payments then negotiate. With friends and family to borrow the money from them.
Or factor the repayments being so soon into amount you are borrowing.

How much skin are you putting in the game? How much cash that won't be borrowed?

 

[Deleted member 305583]

I am not planning on approching high street banks or major lenders as i know i will be turned down. My sister went with the New Enterprise Allowance scheme a few years ago through the job centre and she said that she did not have to make repayments for the first 12 months.

However this was a few years ago.
I am not putting any of my own cash as i dont have any to contribute.

I think it is unfair for lenders to expect borrowers to repay from the first month.

 

[Mr D]

I think it is unfair for lenders to expect borrowers to repay from the first month.

You think its unfair?

Have you tried a lender who will defer payments or just looked at regular loans which aren't designed to be so flexible?

Both of you are businesses - which is better? Unfair to one is beneficial to the other. And you have a lot of choice, you don't have to use anyone you feel to be unfair to you.

With no skin in the game I can't think of anyone offhand that meets your requirements. Some of the specialists on here may know loads.
There are lenders who do deferred loans, some for specific purposes. Quick google search.

HSBC https://www.hsbc.co.uk/1/2/loans/premier-loans/details
Allows 3 months holiday per year on loan payments.
http://www.business.hsbc.uk/en-gb/finance-and-borrowing/credit-and-lending/small-business-loan
Allows you to defer your first 3 months.

That's was with looking for a few seconds. But those don't meet your requirements.

Have you come up with a plan for if you cannot get the money you want?

 

[Deleted member 305583]

I plan on exploring alternative funding such as crowdfunding, peer to peer lending and the very last alternative is equity.

I will not approach high street banks because i will get rejected. However, the Metro bank offers an enterprise scheme. I am not sure how linient they are towards people with poor credit rating. If i am turned down by samuel wilson loans i will try the metro.

I will also explore crowdfunding, however going down this rought takes alot longer to secure.

 

[Mark T Jones]

£38,000 is a hell of a big loan for a start up web business. What do you need the money for? Also, wha5 can you offer a lender as security?

The Start Up Loan can, at their discretion offer a 6 month interest only period but will only stretch to £25k. Most of their loans are less than£7,000.

TBH I think you are being a little over ambitious in your expectations. Can you not start on a smaller budget

 

[billmccallum1957]

I am not putting any of my own cash as i dont have any to contribute.
.

Think about that statement!!!

Now think about it the other way round, someone wants you to loan them £38,000, but they don't want to start paying it back until it suits them. What would you say?

To quote DB "I'm oot".

 

[Deleted member 305583]

Please see below for a total breakdown of figures:
-£15000 to build a technical website
-£3000 to collect data and use telemarketing agency to conduct the campaign
-£800 to pay a trademark attorney to trademark my company logo
-£19,200 for marketing and advertising

I do not want a startup loan, as they only offer a maximum of £25000.

I am unable to start with a smaller budget because unfortunately a business like mine needs alot of money to invest in in order for it to be a success .

In terms of not repaying straight away, most new businesses are not expected to generate great income within the first 6 months to a year.

It is unfair for a lender to expect you to pay back a hefty loan from the beginning.

 

[Mark T Jones]

Please see below for a total breakdown of figures:
-£15000 to build a technical website
-£3000 to collect data and use telemarketing agency to conduct the campaign
-£800 to pay a trademark attorney to trademark my company logo
-£19,200 for marketing and advertising

I do not want a startup loan, as they only offer a maximum of £25000.

I am unable to start with a smaller budget because unfortunately a business like mine needs alot of money to invest in in order for it to be a success .

In terms of not repaying straight away, most new businesses are not expected to generate great income within the first 6 months to a year.

It is unfair for a lender to expect you to pay back a hefty loan from the beginning.

Frankly you’re. Buggered. You want to borrow £19,000 for marketing? You will need to be showing an early nvestor one hell of a strong strategy there.

Seriously, stop thinking about what you believe to be ‘fair’ and start thinking in terms of why anyone is going to want to invest in you.

 

[billmccallum1957]

It is unfair for a lender to expect you to pay back a hefty loan from the beginning.

It's not unfair, its standard business practice.

 

[Mr D]

Please see below for a total breakdown of figures:
-£15000 to build a technical website
-£3000 to collect data and use telemarketing agency to conduct the campaign
-£800 to pay a trademark attorney to trademark my company logo
-£19,200 for marketing and advertising

I do not want a startup loan, as they only offer a maximum of £25000.

I am unable to start with a smaller budget because unfortunately a business like mine needs alot of money to invest in in order for it to be a success .

In terms of not repaying straight away, most new businesses are not expected to generate great income within the first 6 months to a year.

It is unfair for a lender to expect you to pay back a hefty loan from the beginning.

You keep going on about unfair.
That's normal practice. Nothing to say you'll be making enough after x months to be able to repay the loan. And if you cannot pay the bills you have problems.

£19,200 for marketing? OK that's the first month, what then?
Trademark takes a little time, think you may be paying over the odds there.

I suspect you may be thinking too small in terms of how much is needed.

 

[Deleted member 305583]

These figures was given to me by a directer from Yell company.

Also my business will be the only business that offers the services i offer so there is not that many competitors. Also i am targeting a niche market so there are not many competitors. With the right marketing and advertising and a solid website, my business should earn me a large profit

 

[dan19900]

Yell lol. Yeah good luck getting a 38k loan.

 

[Deleted member 305583]

I am starting a full time job on Friday the 16th of March. So if i have a honeymoon period i will be able to save enough money ready for repayment in 6 months to 12 months time.

If in the unlikely event that the business fails, i plan on repaying the loan with my nine to five job

 

[Deleted member 305583]

Why do you say lol. I meet with two agents from yell and the gave me enough confidence to want to use them

 

[ryedale]

£15k for the website?

Have you had actual quotes on that? - presume there is some very bespoke functionality that needs coding. Please don't tell me that was Yell's price?

Seriously, though, it's not unfair - the lender has absolutely zero way of knowing the business will work or not. If you are not putting up a guarantee against it, then there is no protection for them.

Is it a limited company you are looking to set up ?

 

[Mark T Jones]

It’s my bed time now, so before I unfollow the thread let me save you a lot of time

Nobody outside your immediate family is going to lend you anywhere near the amount you are looking for.

Where investment is concerned, see my sticky thread.

 

[Deleted member 305583]

Initially i was going to use a company call ' Web Design Room' to build my website for £4019 but i was told the website will not be technical enough and be able to track and moniterise payments for that cost.

I was told by the Yell employees that a referral website like mine needs alot of technicality and £4019 would not do the job.

 

[Mr D]

These figures was given to me by a directer from Yell company.

Also my business will be the only business that offers the services i offer so there is not that many competitors. Also i am targeting a niche market so there are not many competitors. With the right marketing and advertising and a solid website, my business should earn me a large profit

A business that is unique?
Even worse.

Sit down and think hard about what you want to do. You are looking to take on a load of debt for an unknown result.
True with the right marketing, advertising and a solid website you could do well. As could most businesses including your competitors. Which you will have. Getting those things will be tough.


Should earn you a large profit? Be certain, be very certain.
Then figure out ways to get there.

Common business method is to come up with an idea, implement it then try getting customers.
Lots of failed businesses have tried this method and its still popular today as it was decades ago.

Another method is find a problem, identify a solution then sell the solution to businesses. Harder to do.

 

[Deleted member 305583]

I am looking to set up as a sole tradet

 

[Mr D]

I am starting a full time job on Friday the 16th of March. So if i have a honeymoon period i will be able to save enough money ready for repayment in 6 months to 12 months time.

If in the unlikely event that the business fails, i plan on repaying the loan with my nine to five job

So wait a year and save up the repayments necessary from personal savings.

In the likely event the business fails the lender will chase for their money from you and / or guarantor.

 

[Mr D]

I am looking to set up as a sole tradet

The profits of the business would be your income. The debts of the business are yours.

 

[Mr D]

Initially i was going to use a company call ' Web Design Room' to build my website for £4019 but i was told the website will not be technical enough and be able to track and moniterise payments for that cost.

I was told by the Yell employees that a referral website like mine needs alot of technicality and £4019 would not do the job.

Did you specify to web design room exactly what you wanted when getting a quote?

 

[Mr D]

Why do you say lol. I meet with two agents from yell and the gave me enough confidence to want to use them

Yes they are very good at that. Experienced sales staff, cannot fault them on that.
Just everything else that some business owners fault them on. Including contracts.

 

[Noah]

Please can someone get back to me, as this is an urgent matter.

The urgency is a major warning that you are being pressured into doing something that is not in your best interests.

Stop, Look, Listen.

 

[Deleted member 305583]

I specified clearly to Web Design Room what my website does. Then they suggested a website that the Yell agents said did not contain a proper money tracking system for payments and lacks moniterising methods. They stated a website if that technicality could not be built for just over £4000

 

[Deleted member 305583]

I believe Yell on the matter that my website takes time to develop and needs the technical side for me and the accountant to monitor and track payment.

I have no experience with this sort of thing so i took there word for it.

 

[Mr D]

I specified clearly to Web Design Room what my website does. Then they suggested a website that the Yell agents said did not contain a proper money tracking system for payments and lacks moniterising methods. They stated a website if that technicality could not be built for just over £4000

Building it to your specification would be web design room's problem, not Yell's problem.

 

[Mr D]

I believe Yell on the matter that my website takes time to develop and needs the technical side for me and the accountant to monitor and track payment.

I have no experience with this sort of thing so i took there word for it.

Then get experience. Get dozens of quotes if necessary.

You are wanting to fly before you can walk.

http://smallbusiness.co.uk/the-actual-statistics-of-small-business-success-2526561/

 

[Deleted member 305583]

I believe that Web Design Room may lack experience with the type if technical website i require (according to Yell).

On the surface the website may have looked very pretty and attractive to customers, but it would ve lacking the technical side which monitors and tracks payments

 

[Mr D]

I believe that Web Design Room may lack experience with the type if technical website i require (according to Yell).

On the surface the website may have looked very pretty and attractive to customers, but it would ve lacking the technical side which monitors and tracks payments

So find people who have the experience.
Do a standard specification and get quotes based on it. How to do it is someone else's problem, they can sub-contract or may do stuff in house.

 

[Deleted member 305583]

I have gotten a few telemarketing quotes and Yell seems to be the cheapest, stating they know many contacts in the industry who can provide data plus telemarketing campaign for £3000

 

[ryedale]

Have you heard of GDPR

Suggest you go and learn fast before you spend any money on buying data

 

[pentel]

Please please please do some independent research. You seem to have swallowed the yell story hook line and sinker.

There are lots of resources out there, use them.

Make you own business plan, and if you need help do not allow anyone with a vested interest to help you. Definitely don't consider one already produced by a vendor. as part of their sales pitch

A cash flow forecast is an essential tool from the off.

£38,000 (which will be your own personal debt) is a lot of money to find out if something will work.

 

[Chris Ashdown]

Lets face facts, if you had £40,000 in the bank and a friend of yours cam along with exactly the same plan you had and asked to borrow £38,000 of it, and had a poor credit record and no experience in the planned company, Would you lend them the money.

Investors in businesses look for many things before they lend money probably even more than the major banks. they also want some commitment from you , to see how much you are putting in yourself normally about 50%, so you are risking something yourself. They normally also want some form of guarantee like a house so that if they lend you the money on week one you don't take the money and end up in the Far East in week two.

You put all your faith in what two professional sales people from a company tell you, which is what you want to believe, unfortunately that is what professional salesmen are paid to do , sell their company to you for their own companies benefit.

 

[Gordon - Commercial Finance]

You have said a few times that your last resort is equity - what do you mean by that? Do you have home equity? If so, why is that your last resort?
Often unsecured lending gets turned down because of "too much equity", and that really just reflects what has been discussed above - why should you get to spend the bank's money (without paying it back from the start) when you're not willing to spend your own?

 

[mhall]

Let's be honest, if harsh. You need to grow up and realise this is a non starter. You have not made one mention of a decent Business Plan that will back up any of your claims. You are trusting in Yell who have an interest in screwing you. You have nothing to put in yourself. You expect others to take a risk on you. You have bad credit, so already a poor track record. You constantly moan about life being unfair but have already screwed others yourself (bad credit). Save the money yourself, take your own risks.

 

[Mark T Jones]

Let's be honest, if harsh. You need to grow up and realise this is a non starter. You have not made one mention of a decent Business Plan that will back up any of your claims. You are trusting in Yell who have an interest in screwing you. You have nothing to put in yourself. You expect others to take a risk on you. You have bad credit, so already a poor track record. You constantly moan about life being unfair but have already screwed others yourself (bad credit). Save the money yourself, take your own risks.

In a nutshell.

OP - you need to find a way to get going that doesn't involve borrowing money - as per previous posts, save yourself (and others) a lot of time and effort.

 

[Noah]

These figures was given to me by a directer from Yell company.

Ingrid, have you read this thread?

https://www.ukbusinessforums.co.uk/threads/anyone-using-yell-for-adwords-management.381069/

 

[Socio South West]

@Ingrid Jouavel The longer I read this thread... the more I see disaster looming....

The initial loan, deferred payment....

Wont approach High Street Banks (A business plan doesnt seem to have figured yet???)

Mention of family member using the New Enterprise scheme via the Job Centre historically...

Approaching a Trust who will be even more stringent against losing money than a bank - and more ruthless and faster in pursuing any debt

No capital to inject yourself

Raising money by crowdfunding etc

Starting a full time job

Repeated assurances from Yell sales staff (researching Yell on this forum alone should make you run a mile from them)
​

As Alan Sugar once said.... 'the only fair around here is your bus fare home' - and if you continue this tack I don't think you will have even that.

I would suggest you go back to square one and find a Business Advisor or Mentor with knowledge of your business area. With them you can put together a sensible business plan and some realistic expenditure and cash flow predictions, and any payment for this can come from the earnings from your full time job.