Best place to go for small business loan?

[trinityhope]

Does anyone have any recommendations. Also does anyone know what sort of payments I'd be looking at for 5-6,000?
Thanks

[Al1x]

You could go to the bank? or depending on how old you are and your circumstances you could go to the princes trust.

the payments would depend on how soon you want to pay the loan off.

[Lemon]

If you don't mind me asking what would you borrow the money for ? I would try and start up and build slowly rather than borrow money, but it all depends I suppose on what you want to do.

[MerrilyMe]

I had an 18 month £2500 loan from my bank and the repayments were £97 a month.

[megfenn]

I had an 18 month £2500 loan from my bank and the repayments were £97 a month.

Merry, was that a business loan or personal loan? Did you have to prove ability to repay, if it was a business loan and did you have to secure it against your home or anything? I'm asking because I am considering trying to get a grant or loan for my second business. Thanks.

[MerrilyMe]

It was a business loan and no, i didn't really have to prove anything or secure it on anything. I've banked with them for years, had a business account and just told them my plans, which were to buy up more stock, which undoubtedly helped as of course it can be sold on if it has to be.

TBH though, i don't think that was so much of an issue as the fact i had a clear idea of what i was about.

[Sarah]

I look here (http://www.moneysavingexpert.com) for all my financial advice - they are fab!

[Al1x]

If you don't mind me asking what would you borrow the money for ? I would try and start up and build slowly rather than borrow money, but it all depends I suppose on what you want to do.

Thats the way I'm doing things - that way if the business doesn't go the way i want it then i haven't lost out on anything!

[Chell]

Thats the way I'm doing things - that way if the business doesn't go the way i want it then i haven't lost out on anything!

Same here, as I sell some products I get the money to buy another range or spend some money on the actual site.

[trinityhope]

Thanks girls. I was thinking of buying an existing business, but I really, really dont have enough money to pay for a loan every month, and I could not do with the worry.

Oh well, I could dream for all of a day or two!

[Chell]

I keep reading that most businesses take 18mths - 2yrs to actually be sucessful. What if the business is making no money but you have repayments to make?

I have made nothing from my site so far, it owes me money still.

[knotjustjigs]

I know what you mean Trinityhope, i daydream all the time about my business, i would love a shop (who wouldn't) but am not the sort of person to take risks and since starting my business i pride myself in the fact that i owe out no money at all to suppliers/creditors/loans etc but then again i also believe that its held me back from doing things as i know you have to specualte to accumulate as the saying goes!

Hers to our dreams :)

Toniann x
www.knotjustjigs.co.uk

[MerrilyMe]

Selling what i sell, it just wasn't worknig only having limited lines while i built up slowly; i've depended on credit from suppliers (always paid on time) a £2500 loan and a smaller investmentfrom a family member (£1000 of my future inheritance from my nana) to get me going. having a good quantity of lines (400+) draws people in and the most recent time, when i used the investment to buy in Fimo, was the most obvious success. it was really worth doing.

But it is terrifying; i had sleepless nights over my first £300 stockbill and my own £300 i put in!

[Chell]

I could have apid £1000 to have a franchise to teach baby signing, had it been unsucessful I would have lost my money.
Having bought stock with my money I feel ok, if it doesn't sell I can at least make back what I paid for it on either Amazon or ebay.

[MerrilyMe]

yeah; i always felt okay because i was buying stock and i knew it would sell in the end. Spending money on web design was very scary, but worth it in the end.

[Chell]

yeah; i always felt okay because i was buying stock and i knew it would sell in the end. Spending money on web design was very scary, but worth it in the end.

Can I be nosey and ask, have you paid for SEO or PR?

[feistygal]

The bank is probably your best bet and probably a business loan for that amount. If it's an existing business though you'll have to do a business plan and show them the current figures plus your own cash flow forecast.

If you're interested in the business then the seller should be willing to give you their accounts - if not run a mile! Once you've seen the figures if the current trading will cover the payments then that will reassure the bank. If not then if you can show how and why you will increase sales then they should hopefully be persuaded.

Good luck!

[MerrilyMe]

Chell,
Not yet. SEO, first of all i want to do as much as i can myself otherwise i'll be paying for things i could do but haven't got round to, PR because i have a SIL who does some and because i'm slightly scared it might make me too busy!

[trinityhope]

Thanks for all that girls. Dont think I will go ahead with business. It would have been a second business anyway, and I have other ideas for my existing business that I may persue. Just was looking for something to do that would make me some more money whilst I got my other business off the ground, but I know really that this couldnt be guaranteed anyway. Dont know whats wrong with me. Sometimes I want to do so many things!

[bdarling]

Hi,
i have just finshed reading a book called 'bootstrapping your business' all about starting and marketing your business with little or no money. i found it really got me thinking in new ways, although a lot of the points are simple if you think about them, i hadn't!
The co author has also done a free pod cast http://www.smallbizpod.co.uk/category/bootstrapping/
even if not to start a new business, it could be of help implementing new ideas into your existing business.
kind regards
.

[trinityhope]

Thanks very much bdarling. I will have a look at the link. Any help is great!