Comments on: I need advice on getting a large business loan?

By: thegodfather

thegodfather — Sat, 19 Dec 2009 07:33:48 +0000

Hi,

I second the suggestion of one of the other respondants that you include a social element to your business as you may be able to attract government and charitable funding, as well as doing something positive in your community.

I have no experience in assessing business ideas but I would think that you’d need a watertight business plan to attract a relatively large amount of money like £3m. Also, remember that you’ll probably need to service this loan from the start when your revenue is low.

I hope that all goes well for you!

By: bootleg

bootleg — Wed, 16 Dec 2009 15:43:57 +0000

approach any bank you care to choose and have chat with them.

By: steve b

steve b — Sun, 13 Dec 2009 18:44:14 +0000

Good luck.
I doubt anyone will invest in this as the risks are too great and if they did the repayments would be prohibitive.
You can get a commercial mortgage on the property so long as you have a convincing business plan showing how the repayments will be made but you will need a deposit for that, probably 20%. You will also need working capital as you point out.
I think i would be looking for a partner rather than investor. someone with money, expertise, and hopefully someone who can share your dream.
With a partner you will not be in sole charge but maybe its better to be half in charge of something that completely in charge of nothing.
It sounds like this is something that is not just a business idea but a passion. I hope it works out.

By: Moham B

Moham B — Sun, 13 Dec 2009 16:31:37 +0000

You have no chance – we all have fantastic ideas, but even if you had proof of concept nobody would lend you this money without a track record/ or as a finance company would I lend. What you need to do is start off smaller and work with a co-financer. You really need to work up a very good business plan though and I would suggest if you are looking for that amount of money you should try setting it up as a part finance part social enterprise/ charity venture and approaching companies like Esmee Fairbanks for a grant to set it up as such. There are thousands of grant giving organisations that might help in this case; but anything else is pie in the sky I am afraid.

If you had a property to use as collateral you might get up to 2 times the value of it if you have a very good business plan – nothing else, unless you approach capital venture companies, but I warn you from my experience they are after pre-existing ventures to take over at the right time.

By: katehughes2706

katehughes2706 — Thu, 10 Dec 2009 20:42:45 +0000

If you’ve seen them on the net offering up to £6.5m – who cares if they are reputable or not. If you’ve got your money, they’re the ones who are hoping that you are reputable!

But seriously, I would expect that any company would only let you borrown a serious amount of money like this if you already own a business or have lots of assets you could use as some kind of insurance.

To be honest, I dont think you stand a hope in hell.

By: Mizzie

Mizzie — Tue, 08 Dec 2009 17:25:04 +0000

I wouldn’t be able to help you but I wish you the best of luck in your venture!