Getting loan to start business

[seb_az]

Hello Forum

What are the chances of borrowing £20,000 from bank with a £10,000 deposit?

I will borrow another £20k from my family (so that's 50k) and my friend will put 50k so we can start a supermarket/restaurant business.

I know it's more sensible to just go to my bank and ask them but I thought to post on here first to get your views on this.

Thanks in advance

Seb

 

[PrestonLad]

Hello Forum

What are the chances of borrowing £20,000 from bank with a £10,000 deposit?

I will borrow another £20k from my family (so that's 50k) and my friend will put 50k so we can start a supermarket/restaurant business.

I know it's more sensible to just go to my bank and ask them but I thought to post on here first to get your views on this.

Thanks in advance

Seb

It depends on whether or not you can give any guarantees to the bank. Secure against a property or something. If so, then I think you've a good chance, subject to a decent business case. If not, you might well struggle.

The interest rate will be quite high.

Just as an unrelated observation, depending on your employment status / property status, you bank will probably lend you 20K to blow on a car.... or do home improvements. And at a rate much lower than a business loan.