Is it easy to get a business loan

Hi is it easy to get a business loan?

 

[lynxus]

Hi is it easy to get a business loan?

All depends..

If you have a good business model and can show that its "worth" the loan then yeah.

 

You got to put a good business plan to the banks i quess. Im i right?

 

[David A]

Hi is it easy to get a business loan?

I would say that it is fairly easy, particularly if it can be secured on assets.

HOWEVER my view of the fairness of the margin over base and arrangement fee charged differs greatly from that of the lender.

Even for a simple overdraft of a thousand or so, a rate of 10% over base plus an annual 'arrangement fee' of £200 is not uncommon. And at these rates, many businesses will not get involved.

 

[Salpots]

In respect to unsecured loans...

I was advised by a Business Manager from TSB the day before yesterday that even businesses are struggling to acquire loans because of the economic climate we're presently in.

We were just chatting while I was on hold for about the fourth time by cardnet. I'd told her how I was trying really hard not to borrow, and she just said to me that it's really hard to borrow right now anyway.

I'm presuming from that, that any request you do make from a loan needs to be really well thought out, so you need to work hard to show yourself to be a good borrowing prospect. You need to be able to demonstrate a good plan as previously mentioned above - that's a no-brainer.

Depending on how you're set-up too makes a difference, because even as a limited company they take into account the main directors credit rating (at the very least from just on their own private database scoring system).

I'm no expert, but it seems fair to say, that the better prospect you appear to be, the more likely you are to be given an opportunity to borrow.

What I would say though, is that if you can avoid borrowing at all - do it.

All the very best of luck.

 

[bizloanservices]

A very broad question ...

It can be hard if your business is losing money and you are seeking 'keep me out of jail' money. On the other hand, a finance request which is well researched, thought out and presented will naturally be an easier sell to the bank.

Let's not forget one thing ... it should be difficult to get finance. It was the ease with which finance was thrown about pre-2008 that got us in to this mess.

What we are seeing now is simply a return to 'back to basics' whereby ability to repay and what the money will be used for is the key criteria.

So in answer to the OP's question ... yes it is hard to get a business loan and so it should be!

 

[businessfunding]

As above.

There is plently of money out there to land, much of it from outside the mainstream banks.

However any intelligent lender (and they mostly are these days) is goundg to wwant plenty of information aan comfort to aassist underwriting. They will mostly be interested in:

- What the loan will be used for.
- Historicly proven repayment ability.
- Asset security within the business.
- Asset security from personal means.

Any combination of the above

 

[Richie N]

If it's an existing business then it depends on your accounts (P & L etc), credit history and history with the bank.
If it's a new business then the bank would likely ask for you to put an amount in, some banks have been known to ask for the same amount that they are lending you, if it's a small business loan.

 

ok thanks for the info.