Finance for new business

[TheSpecialist]

Hi All
Can anyone tell me if its difficult to get finance to start a new business, ie, from the bank without having any or little of your own collateral?
Im looking at borrowing around £20k

Thanks
Steve

 

[Ian J]

Much depends on the sort of business involved and any likely assets within the business that the banks could use as security.

A good rule of thumb is that the banks will often provide a similar amount to your own investment

 

[Andriy]

You have to convince your bank manager that your business is viable and it will generate the profit to handle the debt. Good business plan will help a lot.

 

[profitxchange]

the classic routes to funding are
1st Friends and family - if you can't convince them you don't have a very strong proposition.
2nd try Small firms loan guarantee scheme - Look on the DTI's web site read the handbook before going near any banks. DTI can underwrite 75% of the security needed.
3rd get a prestige credit card and borrow on it. This must be the last resort but if your proposition can stand the short term interest burden may be worth a look.

Good luck