How would you raise £50k ?
Discussion
What for?
Back when 'everything was fine' (2005) I wanted to buy a small commercial property, and convert it into a residential property.
It was £75,000 and would have a value of about £150,000 once a first floor was built and it became a one-bed detached house. I could not get a mortgage on it whilst it was in this state, but would be able to get a normal residential mortgage once it was converted.
I managed to get half the purchase price forwarded as a business loan from Barclays, which meant I had to raise the other half and all the development costs myself - which was in total about £65,000.
I had already amassed, by this stage, 7 or 8 credit cards from various companies, most of which had around a 10k limit.
So...I just financed the £65k on these credit cards
The gamble was that the development would be done within 3 months. The monthly interest was monstrous, but part of what I had borrowed also covered these payments.
I did sweat for a while, but it was done, re-mortgaged and all the cards paid off.
Do you have any credit cards?
Back when 'everything was fine' (2005) I wanted to buy a small commercial property, and convert it into a residential property.
It was £75,000 and would have a value of about £150,000 once a first floor was built and it became a one-bed detached house. I could not get a mortgage on it whilst it was in this state, but would be able to get a normal residential mortgage once it was converted.
I managed to get half the purchase price forwarded as a business loan from Barclays, which meant I had to raise the other half and all the development costs myself - which was in total about £65,000.
I had already amassed, by this stage, 7 or 8 credit cards from various companies, most of which had around a 10k limit.
So...I just financed the £65k on these credit cards
The gamble was that the development would be done within 3 months. The monthly interest was monstrous, but part of what I had borrowed also covered these payments.
I did sweat for a while, but it was done, re-mortgaged and all the cards paid off.
Do you have any credit cards?
Thankyou4calling said:
Remortgage isn't an option.
Are there lenders who will advance that kind of sum unsecured?
No, not really, you'd really have to be in such a strong financial position as to not need it in the first place really. Are there lenders who will advance that kind of sum unsecured?
If you were prepared to say what you intend to use it for, you might be offered a solution.
Thankyou4calling said:
I am looking to buy a business as a going concern. The 50k is a third of the entire purchase price. It's a leasehold business with asset value of around 50k.
Sounds like a pretty decent proposal for a Business Loan, speak to your Bank. If the assets are unencumbered they might decide to take a charge for security and judge the affordability against the profitability of the business. P-Jay said:
Sounds like a pretty decent proposal for a Business Loan, speak to your Bank. If the assets are unencumbered they might decide to take a charge for security and judge the affordability against the profitability of the business.
Thanks. It's a strongly trading business that I could drive harder. I've a realstic and achievable business plan but if I could secure bank funding I'd look to reduce the debt in double quick time. I could increase revenue by £1000 per month and reduce costs by the same immediately. That'd go straight to the bottom line and reduce any loan. Medium term prospect is better still.Gassing Station | Finance | Top of Page | What's New | My Stuff