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?
You might want to look at Peer to Peer lending. Make your business case and see what happens.... Plenty of diferent types to look at: Try Funding Circle etc.
fridaypassion said:
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!
Try going to your business bank.
We got a really cheap deal on a £30k loan (used for expanding/cashflow) from NatWest under The Funding for Lending Scheme ( http://www.bankofengland.co.uk/markets/Pages/FLS/d... ).
Setup fee was Zero and rate was very, very good over 3 years.
Might be worth a question!
Cheers,
Rick.
We got a really cheap deal on a £30k loan (used for expanding/cashflow) from NatWest under The Funding for Lending Scheme ( http://www.bankofengland.co.uk/markets/Pages/FLS/d... ).
Setup fee was Zero and rate was very, very good over 3 years.
Might be worth a question!
Cheers,
Rick.
Thats 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.
fridaypassion said:
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.
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.
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.
This is the deal we got through Funding for Lending scheme:
Amount : £30,000
Term : 3 years
Interest rate : Fixed at 4.19% **** - indicative only - the precise rate will be confirmed on the date of draw down
Monthly Repayment : approx £888.07 per month
Loan fee : £ Nil ****
Bank Legal Costs :
Mortgage Debenture - £350.00
Guarantee - £175.00
Edited to add: The rate was exactly 4.19% when we drew it down.
Amount : £30,000
Term : 3 years
Interest rate : Fixed at 4.19% **** - indicative only - the precise rate will be confirmed on the date of draw down
Monthly Repayment : approx £888.07 per month
Loan fee : £ Nil ****
Bank Legal Costs :
Mortgage Debenture - £350.00
Guarantee - £175.00
Edited to add: The rate was exactly 4.19% when we drew it down.
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