New LTD - likelihood of loan and timescales

[torqueofthedevil]

I have a newly registered ltd and an opportunity has arisen for a relatively lucrative project, but would need a loan of around £50k.

What are the chances of getting a business loan and with no assets in the business would they want to secure against my house etc.?

How long would a successful application take to progress from start to end (funds in the bank)?

Thanks

[Caddyshack]

Places like funding circle will fleece you on the rate but may lend.

Most banks will want a personal guarantee but if it is a good business opportunity why not do it? Second charge Secured loans are easier than mortgages to get.


I would probably start with the business bank where you put your turnover.

[MaxFromage]

torqueofthedevil said:

I have a newly registered ltd and an opportunity has arisen for a relatively lucrative project, but would need a loan of around £50k.

What are the chances of getting a business loan and with no assets in the business would they want to secure against my house etc.?

How long would a successful application take to progress from start to end (funds in the bank)?

Thanks

You won't be able to get any funding without personal guarantees I'm afraid. It depends on who you're using for the loan, but it could be a few weeks to a lot longer depending on the provider and the cost you're willing to bear.

[Wilmslowboy]

The last time I looked into something like this it was around 14% plus a personal guarantee.

What is the £50k for, if the stock you might be able to get the supplier to forward you the credit.
Another possibility might be to get the client to pay in advance, for a tasty discount.

[Redarress]

If you need the loan to buy equipments. Depending on what type of equipment it is you may find a Finance Company that would loan on the value of the equipment. Ie CNC machining center etc.

[Caddyshack]

Many people have pretended to need a car loan from any bank advertising for loans - if you borrow under £25k they can often do it...2 of those and you have your money - might be high payments due to 5 yr term.

If you look out for the flyers and tv adverts you can work out who is keen to lend, they often have a promo code.


Obviously this is not advice and there is a moral and legal issue about false info...ask Harry Metcalfe how he funded the launch of Evo magazine...I believe it was a bank loan for a "new grain silo" on his farm.