Funding for my new business

[Deleted member 305583]

Hello

I am currently in the process of trying to obtain a business loan for my new business. I have not started trading yet as i am at the very beginning.

I have a pending application with the Samuel Wilson loans trust, however i was told not to put all my eggs in one basket and whilst my application is pending look at other ways to get finance just in case my application with Samuel Wilson is not successful.

Does anyone know of any lenders who are more lenient on people with poor credit ratings?
The amount i want to borrow is £38,000 unsecured loan paying it back over 5 to 10 years.

I need the finance asap as i want to get the ball rolling.

 

[Mr D]

May find that easier using friends and family. £38k unsecured funding sounds like a lot to go for.
There are places that do startup funding up to about £25k or so, backed by government or with government paperwork.

 

[STDFR33]

You’re not going to get £38k unsecured.

 

[NDT Level 3]

If you don't mind me asking, in general terms why do you need 38k and what type of business do you intend to start up?

 

[Lee-finance]

STD, that's a bold statement, I've seen many times new starts getting unsecured loans for similar amounts and more. Maybe not with one lender but multiple lenders with similar terms is possible.

 

[Mark T Jones]

As others have said, that is a large sum for an unsecured loan for a start up

That said, if there are several of you Start Up Loans could cover it. It’s possible that this is what you are applying for already

tBH, other than start up loans I don’t know anyone who could help with a loan, but equipment leasing might be an option, depending on the application

 

[Neil Lukins]

As already mentioned the Start Up Loan company are your best option but they will only go to £25k per director. They will consider adverse credit but your business plan and cash flow must show affordability.

In our experience unsecured loans over 36 months are few and far between. In most cases they will only help if you are a homeowner with equity.

I have just sourced an unsecured loan for a Client for £35k over 5 years with a director with fair credit history. The lender uses the EFG (Enterprise Finance Guarantee) to cover the borrowings. You would pay slightly more in costs but do get the lending to get started. After 12 months once you are more established you then look to refinance as you will be a more attractive proposition to a lender.

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