Loan for business start up?

[ocdstigy]

Ok guys and gals here is my situation!

Iam looking to go into full time Detailing,i have been Detailing for 9 years on a part time self employed basis,i have been in another job full time in the mean time! Tomorrow i'm biting the bullet and quiting,i have had enough! Due to commitments i can't simply spend years saving money,not an option.

To make this business work,i need to invest around 20-22k into it,this covers my everything from a unit to being fully mobile,all ready to go! Now my main question is regarding a loan..........

Personal loan? Business loan?(i.e open business account,try the bank for business loan)

I'm not really sure what my options are i have never borrowed money,i have no mortgage etc etc,this is new territory for me,but i feel to be happy at work i need the business to be full time,i'm not open to options on my current job,i'm sick of it and my place is with Detailing.

Borrowing options/suggestions are welcome?

My credit score dosn't really exist apart from having a contract mobile phone,

Thanks in advance.

[dc1984]

Hi mate,

you may struggle to get that sort of cash if you don't have much of a credit rating, you will need a decent business plan etc before they will even think about giving out loans.
i have had a few loans in the past for buyin cars, all of which I paid back early which also looks good on paper. When I got a 6k loan for the garage I just asked about a personal loan and said it was for another car as the business loans wanted to know loads of info etc.

What about princes trust grants etc, you pay them back after 3,4,5 years etc but again you need a business plan.

david.

[8valve-craig]

No real chance of a business loan from a high street bank with no trading history, but might be worth looking into government grants for small start up's. It wouldn't be anything like the above figure, but might get you going.

I would however recommend you start with whatever you have and see what you can build in a year, then take your profit / loss sheet along with a business plan to the bank and see what they can offer.

EDIT..... most now covered above :roll:

[Andy]

dragons den? lol

[Southie]

Can you afford to give up your job and then work off your own back then pay monthly payments on such a large loan, even over 5 years your looking at £350.
This may give you a gauge:
http://www.lloydsbank.com/loans.asp

[ocdstigy]

Can you afford to give up your job and then work off your own back then pay monthly payments on such a large loan, even over 5 years your looking at £350.
This may give you a gauge:
http://www.lloydsbank.com/loans.asp

When i have the business running no problem......... i offer remapping,privacy glass,wheel refurbing,i have no equipment though!

[8valve-craig]

Plus Rent, Business rates, Service charges, Utility's, Insurance etc etc.

Definitely worth weighing it up before handing in your notice.

[lee 16v]

Get a credit card and use it for something like your fuel and set it to pay the full amount every month. That will help your credit score. Do you need to jump in and spend 20k? Or can you build it up as you go, maybe rent a unit or see if someone will rent you some space. There is always a way if you want it bad.

ps dont give up, I was told by a woman in my bank that I could never buy a house, what she didnt know is I had 2 bmws sat on the drive worth 5-6k each. So I sold them and loads of other stuff and saved my **** off. Meant I couldnt go out clubbing for a year but I got my house.

[ocdstigy]

I have the business side of things sorted lads no worries cheers for the concern ;) projected to make 60k+ a year :) Problem is i have no unit,sold most of my equipment apart from my Detailing assets,i'm giving the job up or i'll knock the **** out :)

[8valve-craig]

£60k Net profit?

[ocdstigy]

£60k Net profit? 60k turnover first year....

[Southie]

So you must be employing people as well?

[ocdstigy]

So you must be employing people as well?


Nope,detailing can be up to 2k for a car,remapping is very demanding,as is privacy glass,i'm already established in all of the 3 very well,i gave up chipping/mapping and tinting a few years ago,but have done all 3 at once,i'm not 1 of these mediocre people who are happy to sit doing a normal job,if i'm going this alone i won't be pissing about,as my profile says i have travelled the UK to detail :)

[8valve-craig]

Oh, So what's the projected net profit for year 1?

And are you looking to borrow as a LTD company or as a sole trader? It will make a big difference to your prospective lenders.

[ocdstigy]

Oh, So what's the projected net profit for year 1?

And are you looking to borrow as a LTD company or as a sole trader? It will make a big difference to your prospective lenders.

I will be a limited company mate

[8valve-craig]

My apologies if that sounds nosey, just looking to paint a better picture so I can maybe offer advice.

[ocdstigy]

My apologies if that sounds nosey, just looking to paint a better picture so I can maybe offer advice.


No it's fine! I have the business side of it sorted,i just have not got a clue about borrowing lol lol i need all the help i can get!

[Southie]

Just go to several banks then and weigh up your options, unless there's a decent financial adviser on here then it's pointless ;)

[ocdstigy]

Just go to several banks then and weigh up your options, unless there's a decent financial adviser on here then it's pointless ;)
Was worth a try ;)

[8valve-craig]

I will be a limited company mate

So realistically you are going to probably need to build a customer base and some credit history before going in for a big loan.

I would say trade for a year from a small flexible unit with no lease if you can find one, with as little overheads as possible, non VAT registered to keep prices competitive and keeping turnover below 79k doing just what you can with the tools you have and can aquire over time without leaving the business account low.

That in my opinion would stand you in much better stead should you then decide to approach a lender, as it will be clear that given the resources your business can grow.

...........................................

These are my thoughts only,