Small Firms Loan Scheme

[humpbackmaniac]

Does anybody have any experience with this DTI initiative? My company is looking to expand and the terms fit our circumstances well. Or appear to at least.

Any tips from those who have been succesful would be very gratefull recieved.

[jacobyte]

I got one of these for my company a few months ago. What do you want to know?

[humpbackmaniac]

Thanks Jacobyte, did you manage to exclude the personal liability terms? I am hearing conflicting reports on their requirements.

Were the bank accomodating to this method of learning? we are using RBS.

edited for spelling

>> Edited by humpbackmaniac on Wednesday 28th December 11:25

>> Edited by humpbackmaniac on Wednesday 28th December 11:26

[jacobyte]

My personal liability is only a small percentage (about 7.5%), but quite frankly the actual guarantee is not worth the paper it's written on as it has more holes than a broken colander. But then the bank wouldn't have given me their separate loan if I had not gone down the SFLG route as part of the deal.

That said, if you need it for leverage, then go for it - you just need to jump through some simple hoops and fill in a few forms. Your bank will put your case forward as best they can, as it is in their best interests to do so. My bank (HBoS) got it all sorted without much hassle.

HTH

[Size Nine Elm]

I had experience of the SFLGS loan. The bank was the Bank of Scotland, their exposure was 15%, DTI was 85%, we paid interest plus an insurance premium. No personal guarantees at all.

Didn't seem particularly onerous to take out, but as with most company debt banks are taking a more circumspect view of lending these days and may require personal guarantees too.

[humpbackmaniac]

Thanks all, I was concerned at having to underwrite the 15% but as you say the reasoning behind going down SFLG is if we are unable to so QED insurance policy on our part.

Thanks once again, only hurdle now is small minded Suffolk Bank Managers.

HM

[sb-1]

I would be interested to know how you get on with your application,as we may go down this route for business finance.

Cheers

Steve

>> Edited by sb-1 on Thursday 29th December 09:38

[humpbackmaniac]

No probs Steve i will re-post after the papaerwork has been completed.

M

[sb-1]

humpbackmaniac said:

No probs Steve i will re-post after the papaerwork has been completed. M

Cheers Mike.

Steve

[humpbackmaniac]

Little to update as yet, One bank are asking me to underwrite their part of the liability, which i am confidnt they can not actually do, the other is not.
Both however are looking very closely into the financials of all directors, the last year of personal bank statements etc, all of which are fine, but it seems a little invasive.

[jacobyte]

humpbackmaniac said:

Both however are looking very closely into the financials of all directors, the last year of personal bank statements etc, all of which are fine, but it seems a little invasive.

Well done getting to where you are now.

You should be glad to let them see everything, as they need to be able to trust your confidence and belief that you will repay the loan. Be as open as possible, be their friend, and you'll be fine.

Keep it up!

[humpbackmaniac]

Personal info now with them. I am just stumbling over our initial investor, who owns more than 20% thus must have his personals probed which is not keen to do, as i understand this is simply by way of money laundering regulations. Possibly a letter from our solicitor will suffice.
Soon see.