Second Charge/Secured loan to invest into business
Discussion
Hi All,
My business is doing well, growth has been consistent quarter on quarter and I now have a very good opportunity to 'fast track' further growth.
I have already put a fair bit in to the business, used my savings, sold my Mercedes (now driving a Qashqai) and I have no other routes to cash other than using my house equity. I need about £35k.
I cannot re-mortgage to release this, i've been paying myself the bare minimum I need to get by and re-investing. So instead i've been looking at second charge and secured loans (is there a difference?).
Having spent a few weeks researching, speaking with brokers etc, it seems like it could be quite expensive (house valuations, broker fee's and funders fee's) and some reviews I've read aren't leaving me feeling confident in the Companies i'm looking at.
Does anyone have experience in this area, or have been through a similar thing who can recommend a decent Company that will allow me to release money for business purposes?
Thanks,
Karl
My business is doing well, growth has been consistent quarter on quarter and I now have a very good opportunity to 'fast track' further growth.
I have already put a fair bit in to the business, used my savings, sold my Mercedes (now driving a Qashqai) and I have no other routes to cash other than using my house equity. I need about £35k.
I cannot re-mortgage to release this, i've been paying myself the bare minimum I need to get by and re-investing. So instead i've been looking at second charge and secured loans (is there a difference?).
Having spent a few weeks researching, speaking with brokers etc, it seems like it could be quite expensive (house valuations, broker fee's and funders fee's) and some reviews I've read aren't leaving me feeling confident in the Companies i'm looking at.
Does anyone have experience in this area, or have been through a similar thing who can recommend a decent Company that will allow me to release money for business purposes?
Thanks,
Karl
JPJPJP said:
What will you do with the £35k?
I ask as if it was to buy a piece of machinery, your options would be different than if you want to buy stock and different again if you want to spend it on a google ppc campaign
Some new office equip (mainly to cover a new position) -sub 5k. The rest is to cover increased marketing costs, and the associated salary costs for the resources to deal with the extra work.I ask as if it was to buy a piece of machinery, your options would be different than if you want to buy stock and different again if you want to spend it on a google ppc campaign
Funding Circle? They are begging to lend to me when I don't need it. 
https://www.fundingcircle.com/uk/
If you do go the second charge route, make sure it is removed when the loan finishes otherwise it can make things difficult if you remortgage to move.
Yes I'm looking at you Barclays.
https://www.fundingcircle.com/uk/
If you do go the second charge route, make sure it is removed when the loan finishes otherwise it can make things difficult if you remortgage to move.
Yes I'm looking at you Barclays.
Edited by Dennis99 on Tuesday 26th January 12:25
Dennis99 said:
Funding Circle? They are begging to lend to me when I don't need it.
https://www.fundingcircle.com/uk/
If you do go the second charge route, make sure it is removed when the loan finishes otherwise it can make things difficult if you remortgage to move.
Yes I'm looking at you Barclays.
I'll take a look, and thanks for the heads up about the removing the second charge loan.https://www.fundingcircle.com/uk/
If you do go the second charge route, make sure it is removed when the loan finishes otherwise it can make things difficult if you remortgage to move.
Yes I'm looking at you Barclays.
Edited by Dennis99 on Tuesday 26th January 12:25
Dennis99 said:
Funding Circle? They are begging to lend to me when I don't need it.
https://www.fundingcircle.com/uk/
I've just called Funding Circle, but we need 2 years of accounts and we are a few months off of that https://www.fundingcircle.com/uk/
Edited by Dennis99 on Tuesday 26th January 12:25
If you've got a good credit rating most banks will lend you 25k on a personal loan. Rates are really low. Spend it on "Home Improvements".
Or Credit card finance?
I don't know what kind of business you have, but if you take Paypal payments they offer Paypal loans that are short term and good value for a short term loan.
It depends on how long you will need the cash for as to if the above are workable, so depends on your cash flow.
Can suppliers help out with extended terms?
Or Credit card finance?
I don't know what kind of business you have, but if you take Paypal payments they offer Paypal loans that are short term and good value for a short term loan.
It depends on how long you will need the cash for as to if the above are workable, so depends on your cash flow.
Can suppliers help out with extended terms?
Also given the choice of :
Aim for slower growth:
Easier cash flow and an easy life, time to fine tune and learn from small errors. You'll get there eventually.
Vs
Aim for faster growth:
Potentially more profit (and therefore tax), possible for cash-flow to kill you if things don't go to plan. Sleepless nights. Bankruptcy. Homelessness.
Your choice should be based on your attitude to risk, your cashflow situation, your potential ROI and probability of your forecasts being inaccurate.
Aim for slower growth:
Easier cash flow and an easy life, time to fine tune and learn from small errors. You'll get there eventually.
Vs
Aim for faster growth:
Potentially more profit (and therefore tax), possible for cash-flow to kill you if things don't go to plan. Sleepless nights. Bankruptcy. Homelessness.
Your choice should be based on your attitude to risk, your cashflow situation, your potential ROI and probability of your forecasts being inaccurate.
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