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designerclothes
11-01-2003, 05:10 PM
Hi all,

please can anyone help me. I am 22 with no security or assets and I need a business loan for my venture. I have got a bit of capital and have been told if I put up as much money as the bank they will lend me it with no hassel eg. if i need 20,000 I can put in 10,000 and the bank will put in 10,000.

Is this true?
Has anyone else done this?

Thanks guys

designerclothes
13-01-2003, 06:15 PM
Cheers for that mate.
I have already spoken to business link who have said the small bis loan does not apply to retail. But i am still going to try a few banks.

Cheers.

Warlow
13-01-2003, 06:54 PM
Hi,

The SFLG does apply from April (Pre-Budget report in November). Ask your advisor why he doesn't know this!
Start the process to apply for such a loan form a Bank now as it will take a while.

Best of luck

Rob
Small Business Success
www.smallbusinesssuccess.biz

kelly
17-01-2003, 05:20 PM
can someone tell me where i could find out more about the sfgl?

thanks

Statler
17-01-2003, 05:50 PM
Up-to-date information on the SFLGS can be found at:

http://www.sbs.gov.uk/default.php?page=/sflgs/default.php

YES
18-01-2003, 06:26 PM
They say it's easier to get funding of 200,000 over 20,000, and without doubt in today's conservative British economy it's certainly not a wild thought.
It used to be that you could write a plan on the back of an envelope, show it to a VC and you'd have several million quid the next month. Well, maybe not quite that easy - but anyway!

My suggestion is firstly to go to another bank. When they come crawling back in ten years time to you begging you to open an account just recite the old 'You had your chance matey..'. It'll be fun :-) Don't storm out on your current bank, just politely inform them you'd like to close any account you currrently have because of a more attractive offer elsewhere.

Anyway -

i) Go here http://www.bcentral.co.uk/finance/banking/ShowMoney.asp
ii) Develop a mighty good business plan and show it to your local livewire associate/business link advisor. Get his/her approval!
iii) Go to another bank, throwing on the table a strong business plan and tell them that livewire/business link also think it's a stunning plan, even if they can't provide you with funding for whatever reason. If possible, bring along one of these advisors to a meeting with you.
iv) Look smart, feel smart, and don't be nervous.

With respect to the 50/50 business loan plan, I seem to recall the bank of scotland (should be an advisor in your local Halifax branch) are big into this - see www.backofscotland.co.uk for more.

Anyway - Good Luck!

designerclothes
20-01-2003, 04:55 PM
CHEERS GUYS I WILL LOOK INTO ALL YOUR ADVICE WITH DETAIL.

Adele
22-01-2003, 06:03 PM
Dear designerclothes,

One peice of advice....don't go to the banks for funding (if you can help it). Banks interest rates for new businesses are extortionate.

There are lots of local initiatives that lend money to new start ups ie Princes Trust is a national one but there probably many local agencies. Their interest rates are low and they normally give you 6 months before you have to start paying it off.

Which part of the Uk are you based in? let me know and I will see if I can get you info on some local to you.

Regards

designerclothes
23-01-2003, 05:08 PM
Thanks for that advice but i really need about a 35,000 loan and the princes trust only give around 5,000.

I live in Sutton which is not far from Croydon. If you can get me info I would be grateful.

Cheers

natalie
24-01-2003, 12:00 PM
Hi,

I have to agree with the advice Adele gave about banks. Their interest rates are extortionate and I would only use them as a last resort. I am currently with The Prince's Trust and I had a meeting with my mentor yesterday who also advised not to borrow from the banks. I know The Prince's Trust give a maximum of 5,000, but I bet you don't really need as much as you think (35,000 is a lot of money to borrow!).

You should also try your local business advisers and Business Link and I think there is a company called Street who help new businesses.

Good luck.


Natalie Brown
NLB Travel
www.nlbtravel.co.uk

fish boy
24-01-2003, 01:43 PM
Hi,
you can always barter with the bank.
intrest rates are something i have lowered in my banking as i told the bank manager i was going to change banks if they didnt come down as there is a base rate and then your extra the bank charges you on top of this.
also see princes trust on free bank fee's for a year as i done this and you will not pay for change, paying in and withdrawing wich at 0.50p per 100 adds up aspecialy in a cash business.
cheers
calum

kelly
24-01-2003, 04:07 PM
As i understand it you have to have tried to get the money elsewhere and been refused before the trust will consider you anyway, and 35 does seem quite a lot for a start up, i'm looking into opening a clothes shop too, not completely designer but with some more expensive products available and so far i'm looking at around 10, maybe you should go over your figures, i guess the less you need to borrow the more likely you are to get it

elena
24-01-2003, 06:21 PM
The DTI are now offering government backing on loans for people that dont have security.

Basically you have to go through the bank and then the DTI back it. You should contact the business link or your local bank.

This is available as from april. They only back 75% of the money so the rest you will have to find elsewhere.

Its tuff but if you have the determination you can fund large amounts of money.

Believe me it can be done.

Good luck
Elena
www.oohlalaa.com