Small Unsecured Business Loans, Who to Approach

[ChrisPackit]

Hi Guys

My good lady has had a business running for a few years now, perhaps 3 years of accounts available, and would like £20k putting into the business to help promote a niche idea that she has. She has only approached one lender (Nationwide) who have asked for a guarantor (myself) and assumingly want to secure against the property.

I have every faith in her and the business but would prefer not to involve myself as a guarantor, so have you guys got any options / ideas of lenders to approach etc who may be able to help with this kind of thing?

Thanks for your help.

C

[DKL]

I started a second Ltd co to run the premises side of my business and Natwest accepted my main ltd co as a guarantor for a £25k loan a few years back.
It seemed mad as that was where the money was coming from anyway and if the business as a whole got into trouble then you won't be able to service the loan anyway. They seemed happy and I managed zero risk really.

[StevieBee]

Funding Circle is worth looking at.

[jammy-git]

DKL said:

I started a second Ltd co to run the premises side of my business and Natwest accepted my main ltd co as a guarantor for a £25k loan a few years back.
It seemed mad as that was where the money was coming from anyway and if the business as a whole got into trouble then you won't be able to service the loan anyway. They seemed happy and I managed zero risk really.

Did you main company have funds in the bank and strong P&L?

[goldieandblackie]

Its now much harder to get funding for a three year old business in the current climate, did she take out a bounce back loan?

[DKL]

jammy-git said:

DKL said:

I started a second Ltd co to run the premises side of my business and Natwest accepted my main ltd co as a guarantor for a £25k loan a few years back.
It seemed mad as that was where the money was coming from anyway and if the business as a whole got into trouble then you won't be able to service the loan anyway. They seemed happy and I managed zero risk really.

Did you main company have funds in the bank and strong P&L?

It did have both and was/is held by Natwest so they could see all the transactions but all the same previous performance does not guarantee future etc. They took a view and were correct as they were paid back in full with no hassle. It just seemed odd to accept another wing of the same company (but a separate legal entity) as guarantor when there is only on source of funds.