Where to get a small grant or business loan

[montrano]

I'm trying to find somewhere to get £2000 to start my own business.
Any ideas where I can get a small loan or grant for this much.
I've tried the princes trust, but nothings happening with that. I,m waiting to hear from the bank, but I'm not expecting much as i was stupid and killed my credit rating when I was at college 8 years ago. I also have no equity.
I've been unemployed for a year now after 4 years at a mortgage lender, but thee jobs arent there. I'm just desperate to get back to working.
I've been making guitars for 8 years, but I have very basic tools and it takes months. I can turn it into a viable business, but I need to invest in some tools to increase production speed and quality. Luthierey is a niche, but expanding area and working on what i know I can build and sell, I should make nearly £19k in the first year. Thats without ad hoc work.
Ive tried everywhere I can think of though and I just don't seem to fit anyone's requirements

 

[14A]

Make 19k or turnover 19k?

Is there a need for custom made guitars?

Why have PT turned you down?

 

[AlanGNW]

If you are unemployed I'd presume the Job Centre will have some form of advisor you can talk to.

I don't know (not been in the UK for a number of years so a bit out of touch) - but I'd guess there may be some sort of scheme or loan guarantee set up to help you get off the ground.

 

[jeffbearcroft]

Obvious point of call is Business Link to establish if any grants etc are available. If you can't get any credit, friends and family are a possible point of call.

With any new business venture, people investing or lending money are more likely to do so if the know who is running it and of course if they have confidence in that person.

You need to have a strong case to demonstrate why having been unemployed and also having a bad credit record is now all in the past and that things are going to be different in the future - and it can't just be just words because people putting up money have to believe you. They will want their money back at some point.

Regards

Jeff Bearcroft

I'm trying to find somewhere to get £2000 to start my own business.
Any ideas where I can get a small loan or grant for this much.
I've tried the princes trust, but nothings happening with that. I,m waiting to hear from the bank, but I'm not expecting much as i was stupid and killed my credit rating when I was at college 8 years ago. I also have no equity.
I've been unemployed for a year now after 4 years at a mortgage lender, but thee jobs arent there. I'm just desperate to get back to working.
I've been making guitars for 8 years, but I have very basic tools and it takes months. I can turn it into a viable business, but I need to invest in some tools to increase production speed and quality. Luthierey is a niche, but expanding area and working on what i know I can build and sell, I should make nearly £19k in the first year. Thats without ad hoc work.
Ive tried everywhere I can think of though and I just don't seem to fit anyone's requirements

 

[montrano]

Turnover 19k, but this only includes cheaper low to mid price instruments that I can almost guarantee selling locally and online.
I havent included any figures for custom work or repairs as its hard to guess the amount I will get. It's all a case of building a reputation. Luthieres on average charge £25 an hour however, so it will soon add up.
Guitar sales are on the up and have been for several years. It's been put down to games like guitar hero, but also a large number of older players getting back into playing.
When investing in a decent guitar, people are always willing to pay extra for a custom that is exactly what they want.
I also live in an area full of live bands and music venues.

The princes trust haven't turned me down yet, but its taken them 3 months to reply so far and i got a response the other day saying I need to go to a seminar with several hundred others in a months time.
I just want to get started and not go to the job centre. Not sure how much longer I can walk past the groups outside drinking Stella, with staf and several kids in tow.

 

[Billmccallum]

Turnover 19k, but this only includes cheaper low to mid price instruments that I can almost guarantee selling locally and online.
I havent included any figures for custom work or repairs as its hard to guess the amount I will get. It's all a case of building a reputation. Luthieres on average charge £25 an hour however, so it will soon add up.
Guitar sales are on the up and have been for several years. It's been put down to games like guitar hero, but also a large number of older players getting back into playing.
When investing in a decent guitar, people are always willing to pay extra for a custom that is exactly what they want.
I also live in an area full of live bands and music venues.

The princes trust haven't turned me down yet, but its taken them 3 months to reply so far and i got a response the other day saying I need to go to a seminar with several hundred others in a months time.
I just want to get started and not go to the job centre. Not sure how much longer I can walk past the groups outside drinking Stella, with staf and several kids in tow.

A number of questions....

Where are you based? This can be a decisive factor for grants.

How old are you? Guessing under 30 or Princes Trust would not be involved.

Is the business already running? One of your previous posts states you have started a business. Many grants are only available to new start-ups.

Do you have a business plan?

Are you planning to work from home or find premises?

Is the main element of the business manufacture of new guitars or repair work? Repair worked is generally classed as a service industry and can reduce the likelyhood of getting a grant.

If you don't want to post too many details on the forum, feel free to PM me, all advice is free.

Bill

 

[InternetMarketingPlatinum]

There aren't many if any grants, check with Business Link which has the Yorkshire Forward fundings. If you're going to your bank manager then make sure you have a solid business plan with financial projections. i.e. state exactly how you are going to repay the banker's loan.

 

[montrano]

I have tried business link, but there's very little I'm eligible for unfortunately.

I'm 27 and based in chatham, kent.

I've got a few damaged guitars which I'm repairing, as a showcase, but I wouldn't say started trading officially.

I have written a business plan and at least to start with, I will be trading from home. We have a 20' shed on the garden. Just needs workbenches building.

I'm hoping to be mostly manufacture, and my business plan is based on that

 

[TotallySport]

What are you going to spend the 2k on? and will your folks not lend it to you?

 

[Zeal]

What I'd suggest you do in the mean time is:

• Promote your business selling / making custom built guitars
• Take orders - explain it's not a quick process!
• Take deposits
• Use said deposits to buy 1 new tool at a time

• Secondly, take orders to bank along with business plan and examples of your work + comments from customers.

They WILL then sort you out with a nice account.


It's not ideal taking orders knowing it will be a tedious job... BUT we all gota start somewhere - least it'll get you started

 

[Billmccallum]

I have tried business link, but there's very little I'm eligible for unfortunately.

I'm 27 and based in chatham, kent.

I've got a few damaged guitars which I'm repairing, as a showcase, but I wouldn't say started trading officially.

I have written a business plan and at least to start with, I will be trading from home. We have a 20' shed on the garden. Just needs workbenches building.

I'm hoping to be mostly manufacture, and my business plan is based on that

to start with see http://www.medway.gov.uk/index/business/businessfinance.htm

The PFG start-up grant is open for application to any Medway resident with a full-time business.

 

[montrano]

Thanks bill.
It would be perfect, but you need to have been trading 2 years.

I just ask at the job centre and there are incentives, like £40 a week for the first. 3 months of trading. However, I did also speak to an advisor who has a guitar needing repair. 1st customer sorted

 

[montrano]

What are you going to spend the 2k on? and will your folks not lend it to you?

Tools mostly, i think its jus under £300 to lay a new concrete floor, new roof and build workbenches in the shed and the rest will go on
bandsaw, hand router, table router, shop vac, belt sander, orbital sander, pillar drill, chisels, router bits, spokeshave and some specialist, and rather expensive, luthiers tools.
I was originally going to go cheaper, but you dont want to get a cheap machine when your cutting extremely expensive exotic hardwoods.

 

[smallbusiness-uk]

http://www.smallbusiness-uk.org/

some links on here for you
we have a list of grants and where to get them.

the local economic planning department of your council can award £500-£1000

they also provide a £250 marketing grant

Princes trust wWILL NOT turn you down for a research grant of £250-£500

A lot of the problems with PT is that most grant awards go to under 25's this is a fact. Push them again for a loan of £1500, although unlike the council grants and the research grant this has to be paid back, usually over 3-4 years depending on your assertion when agreeing the loan, in addition to this the interest rate is incredibly fair at just 3-4%

hope this helps

Stephen

 

[montrano]

Thanks stephen.
Ill look for an economic planning department tomorrow. So far with the council, no one seems to know who i should be talking to.

I should be going to the princes trust enterprise introductory on 7th July, so hopefully something might come of it.

The other thing i was wondering about is the european progress microfinance facility. Thats meant to be coming out this month, but i cant find anything about it yet. From what i can see, it seems to be aimed at getting the unemployed off of benefits.
Anyone know anything more about this

 

[smallbusiness-uk]

can't help you with that, my friend where is your local council?

 

[montrano]

Its medway council.
I've got the number for business support, so i'll give them a try tomorrow.
The advisor at the job centre today did say theres a lot of schemes available, but very little is advertised.

 

[smallbusiness-uk]

if all else fails you could also look here The majority of angel investments will be under £100,000. For more information visit the British Business Angels Association website

another to look for is ILA though i'm unsure as to wether they do grants or if they are scottish based only, sorry

 

[Billmccallum]

Thanks bill.
It would be perfect, but you need to have been trading 2 years.

I just ask at the job centre and there are incentives, like £40 a week for the first. 3 months of trading. However, I did also speak to an advisor who has a guitar needing repair. 1st customer sorted

Please read the whole thing before jumping to conclusions...

The PFG loan scheme ideally requires the company to have less than 50 employees and to have more than two years of successful trading.

The PFG start-up grant is open for application to any Medway resident with a full-time business.

The crucial element of starting a business is research, get it wrong and you will waste your time... not paying attention to what your reading is wasting my time....sorry for the grumpy old man routine...but I am always happy to help.

 

[montrano]

Ah yes, i missed one word which made all the difference.
Thanks very much Bill, I'm going to use the excuse i was on my phone at the time. Which is also the reason to any spelling mistakes and random words. Its a smartphone thats a little too smart. It second guess's what im typing and if it decides im wrong, it'll randomly change the word.

Thanks again though, its another thing for me to try tomorrow.

 

[papverpoppies]

Its medway council.
I've got the number for business support, so i'll give them a try tomorrow.
The advisor at the job centre today did say theres a lot of schemes available, but very little is advertised.

If you want a grant you have got to track it down, get on the phone, the internet, and blitz all and sundry.

Your local Chamber Commerce, your local Council, get networking, meeting other people is often a good source of information.

There are grants out there, but they do not come to you.

Have you got a business advisor from business link, some are good, sadly not all. They might be able to help you track down a grant.

Search out BA in your area, there are usually other companies who will help you, we have several in my area who are grant funded themselves, so they offer a lot of their service for free.

Ring some and ask!

Can you raise part of the money yourself, what about a credit card money transfer - there are some good 0/% deals at the moment, or a overdraft.

I ask about overdraft as someone else raised the question (for a smaller amount) but had overlooked his overfraft facility.

Good Luck

Poppy xx

 

[montrano]

A made a fairly typical call to the council today.
Called the number on the website, someone answered and put me through to someone else. Waited 10 mnutes for them to answer, who said she was the wrong person. She transfered me to someone else in another department, who said she could transfer me to the right person.
So i finally get through to the right place, which was answered by someone covering as the advisor is away today.
She took my details and he'll apparently call me monday. I got his name at least, so maybe i'll send a direct email.

 

[jeffbearcroft]

You have had some great advice from all the previous contributors which should help you and I am sure that you can make a success of your new business.

I suggest you regard any possible grant you obtain as a bonus and not as deal breaker - if you don't get one, don't let it stop you.

Best of luck.

Jeff Bearcroft

 

[smallbusiness-uk]

You have had some great advice from all the previous contributors which should help you and I am sure that you can make a success of your new business.

I suggest you regard any possible grant you obtain as a bonus and not as deal breaker - if you don't get one, don't let it stop you.

Best of luck.

Jeff Bearcroft

this is absolutely sound advice, don't give it up, how did you get on with your council?

 

[An Oasis]

A quick question for you.

Why do so few people buy custom made guitars? I used to know a few luthiers all of whom made fantastic instruments. Immensely more playable than 99.9% of mass manufactured guitars and yet most people would automatically go out and buy a Gibson, Fender, Ibanez…

Have a chat with some of these good people for some ideas.

http://www.jacaranda-music.com/UKGuitars.html