How easy/difficult to borrow £20k?

[callmedave]

So im looking at a new business venture and require £20,000 (maybe a little more) to get it going.

I will need to borrow this amount as i dont have it available.

I do not have any capital or security (except for stock of business venture)

How difficult will it be for me to get this amount? Are there any tips/advice to help me source this funding?

I can maybe borrow a small amount (>£5k) from family.

Im aware i may not have provided all nesecary info, but il happily answer any questions you have.

[callmedave]

I have not checked but I reakon my credit rating is not that good.

I have not 'borrowed' for years. I dont have a credit card, use Visa debit and cash.

I have an overdraft on my account, which i bounce in and out of.

Been in full time payed employment for 10 years plus.


I was thinking about applying for a credit card from the bank (they keep pestering me to get one) and use that instead and pay it off each month to help improve my rating?

[callmedave]

xjay1337 said:

If you wanted to improve the credit rating, that's definitely an idea.
Get a 0% credit card (assuming you have a mobile phone and pay your dues that should be fine).
Immediately , when you get it, call up the bank and arrange a direct debit to take the full amount.

Then just buy perhaps lunch one day and a magazine with it each month.


Don't spunk loads of money on it and then suffer for 3 years to pay it off! (like me haha).

Ok, will do that tonight, I put the Groceries and fuel on it (only things i really pay on card for anyway) then transfer the amount each payday.

[callmedave]

Ozzie Osmond said:

Without wishing to put too much of a downer on it, I think you'd need a very convincing business plan.

If you do this venture without the protection of a limited company you'd be taking a huge risk if it all goes horribly wrong.

I understand what your saying, and yes there is a risk, but I think its a low risk (wouldnt do it otherwise) I know a few people with their own companies who have been im my shoes so i will consult with them before approaching the bank, Also i may consider a personal loan over a business loan.

[callmedave]

ben5575 said:

There are Government backed start up loans available for up to £25k. Link here.

thank you, will look into this.