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fraz20
30-03-2005, 10:32 PM
Hi there i have been searching posts on SFLGS but i would to know if anyboady has been sucessfully in getting a loan because it looks like i will be looking for a lot of money but i have no money i can put into secure a loan i thought i could he set my business up for 70 grand but looks like i will be needing say 90 or a hundered grand i mean if it is easy to get small firms then i will be concidering other wise it back to the drawing board ?

Clementine
31-03-2005, 10:15 AM
As far as I understand it is still the bank that make the final decision. The Small Firms Loan Guarantee Scheme seems a bit of a mockery to me to be honest.

I had kept the SFLGS in my back pocket in case the banks needed a nudge, but it is still them who make the decision so I see little difference the guarantee can make.

Someone on here might be able to give you some real first hand experience though.

Good luck.

Clem.

MarkD
31-03-2005, 10:18 AM
Just in case you haven't seen this here is a link to a copy of the SFLG guide, it's not too long.

http://www.dti.gov.uk/sflg/pdfs/sflg_booklet.pdf

I guess one thing you have to remember is that your business plan still needs to stand up to the normal scrutiny a lender would normally apply and they will only lend if they think you will succeed. Small Businesses regularly succeed in getting the guarantees!

Hope this helps.

Ian J
31-03-2005, 10:35 AM
Originally posted by Clementine
I had kept the SFLGS in my back pocket in case the banks needed a nudge, but it is still them who make the decision so I see little difference the guarantee can make.

Banks don't like taking risks but the SFLGS is useful if the bank actually likes your proposal as they can provide the necessary funding with the Government taking the majority of the risk.

I did have one of these loans but it was a few years ago and possibly not relevant in 2005.

You don't have to be too specific if it's sensitive but what type of business are you looking to setup.

andy2
31-03-2005, 11:51 AM
The bank has the decision wether or not to invest in you, so you need a strong proposal/business plan, they do keep an eye on you, what your doing and so fourth, they will also want your business to do banking with them, and not use them just for the loan.

The loan is backed 50% by the government, so if you go bust the bank get 50% back from the government.

The bank will have different deal on like start paying interest from the begging or after a period like 6 months.

I know some one who got the load for a business and there was a lot of hassel involved from what the bank wants and the visits they make.

Another friend had an good virable idea, that is something that would work, as health and safety would force business to use this service, in that certain area, but the bank decided that the person giving the proposal isent virable enough as his other businness doesent do to well, i.e makes enough for a living, but lives on its overdraft each month (always payed of at the end of the month) etc so the banks do take a not of you, your history and or any other businesses you have or had.

fraz20
31-03-2005, 12:00 PM
hi there my business will be a coffee house so it is a viable idea and there is always money to be made in food and drink? and i want able to make the right choice on how i will go forward so i can say to my business advisor i will be concidering going for it because if it is viable then its a good idead and you need to open a business were there is a look of people passing.

plus dose anyboady know who you contact about retail units in airports

fraz20
31-03-2005, 04:09 PM
anyboady?

Adam
31-03-2005, 05:36 PM
BAA?

fraz20
31-03-2005, 06:20 PM
i will try baa i will call them tomorrow, but for what am concidering at the monent i dunno if sfls is a good idea just think becuse if the bank knock it back maby they will aceept with sflgs but iwant to make right choice the property i have viwed and got qoute do it it it is a lot to it up buut it dose have full class 3 concent witch is good and is in the right spot just it willl cost a lot so long as in the firth few weeks of trading i can making money i will pasy off.

Adam
31-03-2005, 06:58 PM
Mate, you have got to start using the shift key and enter key.

Spaces between lines and capital I when talking about yourself will make it easier for me to understand what you are chatting about.

Also, typing your points clearly in a way suited to type instead of the way you talk ya know what I mean kind of thing make a bit more sense.

fraz20
31-03-2005, 08:21 PM
yes i know what you mean i am dislexic i will type it beter and make it more readable next time.

as i was saying i will contact baa tomorrow.

i think i will go with the property am concidering i know i will get knocked back for a loan from the bank but i will go for sflgs hopefully i should get it.

Adam
31-03-2005, 10:27 PM
Cheers fraz

It was more the line spacing!

I know even renting is pricey as I am looking for myself at the moment. Have you got a full business plan and cash flow?

As said before from others, the bank says yes to the loan and then the SFLG is a kind of rubber stamping excercise. But you must remember the bank takes a 25% hit if it goes tits up.

For you, the premises is crucial, for me it is just a base so not so important. It may be worth speaking to a number of the commercial agents out there and just getting some vides from them. Chances are it is a very tight setup with BAA or the likes heavily controling the rents and charging a lot for it.

fraz20
31-03-2005, 11:35 PM
adam i have a fully business plan and cash flow its just i have got a quote to do a shop up, and it will cost a lot about 78 grand its so expensive beucse these days its hard to find plumbers ete.

This figure will be incoraparted with working capital figure, i think baa might dead expensive but when the shop i might be going after has a huge rent.

one thing going for me is there is know starbucks or costa were i will be setting up i know if have right markating it should work its just rasing the money.

i have seen other premises but they will be more expensive becuse most of then are class 1 retail and have no toilets and to kit out toilets it is a lot of money

the one i might be going after has full class 3 concent and all the toilets i need wich is good.

richard.h
01-04-2005, 02:02 AM
I agree on the rubber stamping part of the SFLG application.

It's going to rely on how the bank view your business plan / you.