£27,000 loan - best option?
Discussion
Errr.... I suppose it depends what you want it for and all the other various risk factors that any lender would take into account. If you don't want to go down the route of using a bank, then you could use a crowdfunding solution like fundingcircle.com, but don't expect people to be willing to offer you good rates unless you have a correspondingly good credit history and an established company.
If you're starting a new venture, it's likely that your personal bank might be the best option, but to be honest it really depends on the context of your question.
If you're starting a new venture, it's likely that your personal bank might be the best option, but to be honest it really depends on the context of your question.
I think this is something you might want to make time to think about.
Depends what it's for, how long for and the financial position of your company. I'd always start with your own bank, for sensible risks there are decent rates about. Expect to have to give them a personal guarantee though, if you haven't already.
Depends what it's for, how long for and the financial position of your company. I'd always start with your own bank, for sensible risks there are decent rates about. Expect to have to give them a personal guarantee though, if you haven't already.
£27,000 over 10 years?
Even 5 might be stretching it a bit, I cant see the bank chewing off your hand to lend you the money on those terms.
See it from their point of view, how viable is this business if it can only spare a few thousand a year for repayments of a business critical loan.
Assuming this is an unsecured loan I think 3 years is typical.
Even 5 might be stretching it a bit, I cant see the bank chewing off your hand to lend you the money on those terms.
See it from their point of view, how viable is this business if it can only spare a few thousand a year for repayments of a business critical loan.
Assuming this is an unsecured loan I think 3 years is typical.
Limited company or sole trader, how long have you been in business?, are there any assets the loan can be secured against?, what kind of track record have you got. Are you willing to personally guarantee the loan if you are new Ltd Co with no track record. All of these things will be taken into account when judging whether they will give you the loan and if they do at what interest rate.
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