Sources for some business funding
Discussion
So we have got the lovely to have issue of having a thriving and growing business and pretty much constant cashflow issues as a result!
I want to inject about 35k into the business to buy some stock and possibly a company van.
The one thing I've not done yet is raise money against my own house. We have about a 50% LTV but Santander are setting us up for some major hoop jumping when I approached them. We are proceeding down this route for now.
Their additional lending rate is 4.9% so the question is are there any other sources we should be looking to? We have no debt in the business and fixed assets/stock at about 100k. I dont want to go down the investor route in terms of giving up shares although it might make an attractive proposition for someone wanting a bit more of a return on a lump of cash.
Any other ideas?
I want to inject about 35k into the business to buy some stock and possibly a company van.
The one thing I've not done yet is raise money against my own house. We have about a 50% LTV but Santander are setting us up for some major hoop jumping when I approached them. We are proceeding down this route for now.
Their additional lending rate is 4.9% so the question is are there any other sources we should be looking to? We have no debt in the business and fixed assets/stock at about 100k. I dont want to go down the investor route in terms of giving up shares although it might make an attractive proposition for someone wanting a bit more of a return on a lump of cash.
Any other ideas?
We have a funny little business really some is B2B some B2C. The main stock I'm buying is cars so it's quite cash hungry and limits things like credit cards as I'm normally buying from private individuals. We will carry on with the bank. The income is no issue it's just the dreaded affordability and any other reason they can think of not to lend!
Could be worth looking intoThats another one to look at Rick cheers. We are at the typical what I call dragons den stage. If I went in the Den we'd have 5 offers as we are already doing well and now want to scale. Simples. As an update Santander wont allow us to have additional lending on the house as they need an additional year of accounts. No flexibility on this despite us having up to date accounts until Jan 1st this year showing more than a doubling of net profit year on year (previous year was 10 x year before etc)
We have an offer of a secured loan at 5.9% so thats the number to beat at the moment. 2.5k fees on that one...gulp. We still own all the business though so still cheap money really I guess.
We have an offer of a secured loan at 5.9% so thats the number to beat at the moment. 2.5k fees on that one...gulp. We still own all the business though so still cheap money really I guess.
Mr Overheads said:
If the fees are 2.5k then the true rate is higher than 5.9%. i.e. need to factor in total fees and total interest over the total term.
It's probably still cheap money. If you were looking to borrow money via p2p lending e.g. rebuildingsociety.com, funding circle et al then you would be looking at over 10%, unless you really managed the auction well and got family, friends, local HNW investors to bid on your loan and get the rate down. Maybe loads of PH'ers would bid at 4.9%, if we all bid say £100 you would have the money quite quickly and the p2p platform would handle all the admin.
Thats one angle I hand't thought of as well. The only issue there is how long it takes to get together and also the fees for these sites are quite high as well I believe? We need to gt everything in place ASAP really ready for our main sales season kicking off in April. Maybe something like that if we had a second round could be doable but I think at the moment we have enough on our plate with a busy year planned!It's probably still cheap money. If you were looking to borrow money via p2p lending e.g. rebuildingsociety.com, funding circle et al then you would be looking at over 10%, unless you really managed the auction well and got family, friends, local HNW investors to bid on your loan and get the rate down. Maybe loads of PH'ers would bid at 4.9%, if we all bid say £100 you would have the money quite quickly and the p2p platform would handle all the admin.
As a bit of an update on this we ended up having a storming spring which relieved 90% of the cashflow issues. Got signed up with Nextgear and just took a deposit on the first car we had on the scheme. The Nextgear system is a bit flawed for my business as they only work on CAP which is pretty much useless for Lotus cars.
A good option for Nextgear would be for us to have the ability to offer security in exchange for binning the CAP values. It could work really well for us we could probably put every car on the system but at the moment there will be few opportunities for us to use it.
A good option for Nextgear would be for us to have the ability to offer security in exchange for binning the CAP values. It could work really well for us we could probably put every car on the system but at the moment there will be few opportunities for us to use it.
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