Business funding

[LauraLush]

Hey ladies...

Given the way things are currently and banks are claiming to be skinter than ever... Has anyone got any advice at all on securing business start up funding or the best ways of getting funding??

I approached a bank yesterday and when the lady said 'how much are you looking for', and I said £20k, you would have thought I'd have said £500k!!! Her jaw hit the floor and she said "That'll be a tall ask, you must have heard how things are at the moment - hmm, don't think we could help with that one.."
I'm just a little gob smacked really at how £20k can be classed as such a 'huge' amount when starting up a business, as some businesses need hundreds of thousands in order to start up & I honestly don't think £20k is an unreasonable amount in business start up... So needless to say I'm feeling a bit deflated... I have also tried Princes Trust but because I work and I am not unemployed, I am not eligible!! Don't get me started on that one!!

Any ideas anyone?? I'm feelin quite frustrated!!

Laura.x

 

[loubylou]

Business link is your next port of call,
they help in lots of ways, hth :hug:

 

[kiatworcs]

hiya,

Have you approched business link ??

 

[kiatworcs]

lol 2 minds think alike lol

 

[LauraLush]

Lol, yes business link are fab I kno - I have seen them in the past. They are indeed my next port of call, my only problem is I really want to get the ball rolling to secure my premises etc and get open for the summer, but business link can't see me now until 14th april... I am a bit gutted bout that to be honest. Maybe I might be best waiting to see them?

 

[Violet Star]

Lol, yes business link are fab I kno - I have seen them in the past. They are indeed my next port of call, my only problem is I really want to get the ball rolling to secure my premises etc and get open for the summer, but business link can't see me now until 14th april... I am a bit gutted bout that to be honest. Maybe I might be best waiting to see them?

Good things come to those who wait:green:

 

[collin]

Hey ladies...

Given the way things are currently and banks are claiming to be skinter than ever... Has anyone got any advice at all on securing business start up funding or the best ways of getting funding??

I approached a bank yesterday and when the lady said 'how much are you looking for', and I said £20k, you would have thought I'd have said £500k!!! Her jaw hit the floor and she said "That'll be a tall ask, you must have heard how things are at the moment - hmm, don't think we could help with that one.."
I'm just a little gob smacked really at how £20k can be classed as such a 'huge' amount when starting up a business, as some businesses need hundreds of thousands in order to start up & I honestly don't think £20k is an unreasonable amount in business start up... So needless to say I'm feeling a bit deflated... I have also tried Princes Trust but because I work and I am not unemployed, I am not eligible!! Don't get me started on that one!!

Any ideas anyone?? I'm feelin quite frustrated!!

Laura.x

Good for you Laura for wanting to establish a business during these difficult times.

The banks are somewhat unpredictable right now..all I can say is keep ringing around.

A lender is going to look for a number of things when your starting off
1) How much of the funding requirement are you putting in..I.E. if you need say 30k to set up they don't like to fund it all...so they will look to you to fund also....so you fund 10k and they fund 20k kind of thing
2) ability for you to repay the loan interest and the loan itself...if your giving up a full time job your income goes and are therefore completely reliant on the salon being a success.
3) security..can you offer more security for the loan than the loan itself.
4) they will want to know what reserves you have if funding needed if you have got your sums wrong

Go in with all this info..it will make you look like you are a pro,serious and have good business sense
If you cant offer these things.....SUGESTION:idea:


Keep your job going and initially set up as a mobile or in another salon on a freelance/profit share kind of basis.

If its for you and your good you will establish a customer base as well as income which you can then look to make the bigger investment into your own salon and give up your full time job.

Maybe not as sexy a route or as quick but MUCH safer in the long run and with considerably less exposure and risk to the bank

Good luck :hug:

 

[angelina221]

The banks are being very careful now and funding is hard to get. When i applied for funding they were concerned because i wasn't working. I had been made redundant the year before and decided to take a year off. Then i saw the business for sale and bought it. Getting funding was a nightmare. I didn't work so no-one would give me a loan either. I'm married and couldn't get other forms of help as the money my husband makes from his job was taken into account so i couldn't get help.
In the end my husband took a loan out in his name and i put the rest on credit card with 0% interest. It's a risky business but i am nothing if not determined and it was the only choice available to me. Amazing how much credit cards will give you when you are unemployed-quite scary really!

 

[loubylou]

It was having a great business plan and a 3rd of the money needed that got me my business bank loan,
i had been unemployed for 7 years, hth