Getting Finance?

[Adpod]

ok I need some help I recently had a business idea and decided to carry out some market research to see if it was viable. Instead of asking people if they would be interested in the service I setup a website and advertised the service in my local paper and radio station.

Long story short I have taken more than £400,000 in orders for the service in just over 6 days. The service is very affordable and not just for the wealthy.

However to fulfill these orders I would need to get all the equipment I would need a rather large loan up to £2 million.

My question is where would I find a loan company to loan that amount of money.

 

[businessfunding]

ok I need some help I recently had a business idea and decided to carry out some market research to see if it was viable. Instead of asking people if they would be interested in the service I setup a website and advertised the service in my local paper and radio station.

Long story short I have taken more than £400,000 in orders for the service in just over 6 days. The service is very affordable and not just for the wealthy.

However to fulfill these orders I would need to get all the equipment I would need a rather large loan up to £2 million.

My question is where would I find a loan company to loan that amount of money.

In short, I'm afraid the answer is you won't. If this is an idea with legs in the long run you might be able to raise equity funding on the back of confirmed orders, however I would suggest that you look at ways of fullfilling the orders through partnerships and arrangements with other businesses.

Dependent on your means and background you might be able to raise samaller - far smaller - tranches of funding through asset finance and potentially factoring and other finance arrangements.

What is your service, and what equipment is involved.

 

[Adpod]

In short, I'm afraid the answer is you won't. If this is an idea with legs in the long run you might be able to raise equity funding on the back of confirmed orders, however I would suggest that you look at ways of fullfilling the orders through partnerships and arrangements with other businesses.

Dependent on your means and background you might be able to raise samaller - far smaller - tranches of funding through asset finance and potentially factoring and other finance arrangements.

What is your service, and what equipment is involved.

I don't really what do get into the finer details on an open forum however the equipment is costs £2 million (although I am aware that it will depreciate) I was thinking would a bank accept the loan on the back of the £400,000 worth of orders and the resale of the equipment would fetch 1.8 million even after 2 years of use?

 

[TheGuru2010]

I don't really what do get into the finer details on an open forum however the equipment is costs £2 million (although I am aware that it will depreciate) I was thinking would a bank accept the loan on the back of the £400,000 worth of orders and the resale of the equipment would fetch 1.8 million even after 2 years of use?

What if your machines did not work after 12 months? re sale value - NILL

If you want advise from the forum you need to be a little more open, what machinery is it you need?

 

[bovine]

Have you considered going into partnership with someone who already has the marvellous machine and has spare capacity?

They may well not have thought of applying it to this service you are offering.

You would need legal assistance, but would be far simpler than trying to find £2million

 

[Adpod]

What if your machines did not work after 12 months? re sale value - NILL

If you want advise from the forum you need to be a little more open, what machinery is it you need?

The machinery comes with a 5 year warranty for a start so I am certain they will work after 12 months re sale value - 1.8 million.

I am not looking for business advice I am looking for people who have dealt with or know of finance companies that deal in high amounts of money.

Thanks

 

[Adpod]

Have you considered going into partnership with someone who already has the marvellous machine and has spare capacity?

They may well not have thought of applying it to this service you are offering.

You would need legal assistance, but would be far simpler than trying to find £2million

The reason I have sold my service in great numbers so quickly is because this service isn't offered in the UK, I would also like to keep this my own business not have any investors/partners etc

 

[businessfunding]

I don't really what do get into the finer details on an open forum however the equipment is costs £2 million (although I am aware that it will depreciate) I was thinking would a bank accept the loan on the back of the £400,000 worth of orders and the resale of the equipment would fetch 1.8 million even after 2 years of use?

On the basis that you've advertised the service on radio and attracted £400K worth of orders, surely you can tell us what the service is, then perhaps we can take a decent stab at what the equipment would be?

Banks aren't pawnborkers (although they did forget that themselves), they look at repayment ability - they don't want shed s full of equipment.

However there are specialist finance companies who might take a view on the equipment (or have a cosy relationship with the supplier manufacturer) who might advance say 75% of its value. (Whatever the kit I think you are being wiildly optimistic about its year 1 value)

Presumably you would also need to cough up for premises and labour for the equipment - how do these fit in your business plan?

 

[businessfunding]

I am not looking for business advice I am looking for people who have dealt with or know of finance companies that deal in high amounts of money.

Thanks

I do, and have done for a long time.

 

[Adpod]

On the basis that you've advertised the service on radio and attracted £400K worth of orders, surely you can tell us what the service is, then perhaps we can take a decent stab at what the equipment would be?

Banks aren't pawnborkers (although they did forget that themselves), they look at repayment ability - they don't want shed s full of equipment.

However there are specialist finance companies who might take a view on the equipment (or have a cosy relationship with the supplier manufacturer) who might advance say 75% of its value. (Whatever the kit I think you are being wiildly optimistic about its year 1 value)

Presumably you would also need to cough up for premises and labour for the equipment - how do these fit in your business plan?

Firstly I am no longer working at the radio station, this is solely my own business. My business plan is good but that is not the issue here.

Do you work for/run a finance company?

 

[Adpod]

I do, and have done for a long time.

Ok if you think you can help with my finance needs drop me a pm with your company details.

please

 

[Super Simon]

Why did you accept £400k of orders if you knew you wouldn't be able to fulfill them?

I can only suggest you'd be better off either outsourcing the work or going in to partnership with another manufacturer who already has the machine required.

Funding is already hard to come by for established businesses, never mind one that is a couple of weeks old.

 

[Adpod]

Why did you accept £400k of orders if you knew you wouldn't be able to fulfill them?

I can only suggest you'd be better off either outsourcing the work or going in to partnership with another manufacturer who already has the machine required.

Funding is already hard to come by for established businesses, never mind one that is a couple of weeks old.

Well we didn't expect to sell £400,000 worth in a week but now I can see its something that is needed in the UK. Again no one in the UK offer this service so I can not outsource it to anyone.

 

[Super Simon]

Well we didn't expect to sell £400,000 worth in a week but now I can see its something that is needed in the UK. Again no one in the UK offer this service so I can not outsource it to anyone.

Hang on... so why did you offer a product for sale that effectively wasn't? Am I missing something here?

Or did you advertise this product like "I have this idea, do you think it would take off?" and then as a result, people have contacted you saying they'd have one to the tune of £400k worth of business? So now you want to capitalise on it?

 

[chalkie99]

Exactly.

If he really did sell 400k worth of product/service which he cannot supply he will be far too busy answering questions down at the station to search for finance.

 

[vvaannmmaann]

Hopefully no money has changed hands and these are potential orders?

 

[Adpod]

Thank you all for your concern but the money is held in escrow hence I need to provide the service before I get paid.

 

[Super Simon]

Thank you all for your concern but the money is held in escrow hence I need to provide the service before I get paid.

What the hell are you thinking?

You've taken orders for a product that essentially doesn't exist and now you have to try and come up with a solution.

You have failed in the basics business; you research and create your product first and then you start taking orders.

You say this particular product isn't yet available in the UK, so it must be created somewhere. If you want to fulfill these orders, I suggest you contact the places where your mystery product is already being manufactured and ask them to make it for you at cost.

You really should have thought about this WELL before you started taking orders.

 

[Gillie]

Why do you need to 'own' the equipment? Is leasing an option? Have you thought of that particular route?

(She said ignoring the comments about what you should have done - hindsight is a wonderful thing - so lets try and provide answers to the problem, otherwise you could have some disgruntled customers!)

 

[Adpod]

I have already contacted a leading company earlier today so hopefully they can come through.

Again I'm not here for business lessons I can run a business with no problem.

 

[Adpod]

I have already contacted a leading company earlier today so hopefully they can come through.

Again I'm not here for business lessons I can run a business with no problem.

 

[chalkie99]

I recently had a business idea

I have taken more than £400,000 in orders for the service in just over 6 days. The service is very affordable and not just for the wealthy.

to fulfill these orders I would need to get all the equipment I would need a rather large loan up to £2 million.

where would I find a loan company to loan that amount of money.

I was thinking would a bank accept the loan on the back of the £400,000 worth of orders

I am not looking for business advice

My business plan is good

no one in the UK offer this service so I can not outsource it to anyone

.

the money is held in escrow hence I need to provide the service before I get paid

Again I'm not here for business lessons I can run a business with no problem

.

Can you see any flaws in what you have written?

You really think you can take huge amounts of money in this way without the smelly stuff hitting the fan? :|

 

[Adpod]

Ok like I said I DON'T need business lessons. Hopefully I have sorted my problem with leasing.

How many of you people giving these lessons can say they have take £400k in orders in 1 week?

 

[Super Simon]

Again I'm not here for business lessons I can run a business with no problem.

I don't mean to sound disrespectful, but I'm not convinced you can.

If you've got a product that works, you get it manufactured and then sell it. One per week if that's all you can afford. And then keep saving your profits to buy more products to meet demand. You bank your profits and buy more products with it and sell them. It's a snowball effect and the bread and butter of business.

You need to walk before you can run and I think you've just bitten off far more than you can chew.

How many people have purchased your idea and at how much per item?

 

[Gillie]

Ok like I said I DON'T need business lessons. Hopefully I have sorted my problem with leasing.

How many of you people giving these lessons can say they have take £400k in orders in 1 week?

Careful - depending on what field various are in, then yes ... it could be said that more than £400k was taken - want to redefine your question??

 

[Super Simon]

How many of you people giving these lessons can say they have take £400k in orders in 1 week?

FOR SALE: Space Shuttle holidays to Mars for a week, all inclusive. Only £1,000 per person. Towels not included.

I've just done exactly what you've done. Advertised something for sale that I can't realistically deliver without a lot more money than I cared to research for. And I bet I could make a lot more than £400k in a week with that idea.

Watch your back, Richard Branson.

 

[decworld]

anyone that can get 400k worth of orders in less than one week does not need to come to UKBF and ask about finance.

smells very fishy.

 

[Adpod]

Thanks for your concern guys but I really don't need it. My service is unique affordable and in demand.

 

[Super Simon]

Thanks for your concern guys but I really don't need it. My service is unique affordable and in demand.

What is it then?

 

[Adpod]

What is it then?

I think lll keep that to myself for now and once I get the equipment and can build up enough to go nation wide I'll let you know, maybe you will even buy it

 

[Super Simon]

I think lll keep that to myself for now and once I get the equipment and can build up enough to go nation wide I'll let you know, maybe you will even buy it

Good luck. I think your methods are going to need it.

And if it's a product worth buying, I'd gladly be one of your customers.

 

[Moneyman]

I would also like to keep this my own business not have any investors/partners etc

Ahh so you need a 100% bank loan or financing for a large machine for a startup.

Getting finance on a new machine when you already have half a dozen working in a profitable company is very hard these days so i would say you are going to have your work cut out to say the least.

 

[Adpod]

Ahh so you need a 100% bank loan or financing for a large machine for a startup.

Getting finance on a new machine when you already have half a dozen working in a profitable company is very hard these days so i would say you are going to have your work cut out to say the least.

Yea I figured that but I'll try leasing hopefully that will work.

Thanks

 

[Moneyman]

That comment was aimed at leasing. Oh and are you good for the £2million personal guarantee they will require?

 

[arcon5]

That comment was aimed at leasing. Oh and are you good for the £2million personal guarantee they will require?

Personal guarantee wouldn't be worth the paper it's written on to be honest - I imagine somebody in that position would just declare bankruptcy

 

[arcon5]

In fact I don't believe this thread is even real - well, at least I hope not.

If you're going to take orders before having the capability of fulfilling them, anybody with any kind of sense would have a plan in place e.g. invoice factoring to raise cash to buy equipment to fulfil the orders.

Knowing a piece of equipment costs £2m, it seems clear op has not put ANY thought in to this, let alone doesn't need business advice! Although it must be one hell of a piece of kit to not be able to get it cheaper -- in fact I can't even think of any piece of equipment of the top of my head that would ever cost that much in the first place!

 

[crphillips]

No chance. Unless your dad's a millionaire and will go guarantor.

 

[internetspaceships]

Guys, work out the maths here.

Has a business idea. In the planning stage, so miraculously pops out a website with not only a full shopping cart but an escrow service and takes £400,000 in the first week it's online.

Right.

 

[Banned]

Troll alert. NO website gets £400,000 in it's first week, because NO SEO works that quickly. I'm with spaceships here, it's bollox. Amazon lost millions for the first few years, apparently the OP is way beyond them in a week, and has time to piss about on here.

 

[Super Simon]

You're all a bunch of cynics. Luck happens.

In fact, only last week I won the Nigerian lottery for the fourth time... this month.