Start Up Business - Help with Funding

[Danz123 10]

Hi

 

I have a great business idea and already have over £1000.00 in orders, these are mainly through a facebook page I have set up. I set this page up to see how well it would do and its taken off really well.

 

I am looking for £3000 to buy the stock I need, I would be selling online and delivering my items and also doing markets.

 

I am already registered self employed and have signed up for the markets the only thing holding me back is the stock.

 

I have tried loan companies, start up loans, credit unions etc but due to a poor credit history previously I am unable to seek credit and unfortunately do not have a guarantor.

 

Can anybody recommend a company/person who would be willing to loan the money for a period of 18/24 months I would be willing to pay back £4500 so they would make £1500 profit from this. It needs to be a company/person that is not going to look at my credit history and look at the business idea and believe in me.

 

I am hard working and dedicated and just need that one company/person to believe in me.

 

I am looking for the funding asap as this now will be a very busy time for me, and to enable me to process the orders I have already obtained.

 

Many Thanks

[Chez2 10]

Why would you need to borrow such a small amount for such a long time? Surely you will have turned the stock over and hence released the money you owe very quickly?

 

Can't you persuade the supplier to release stock in smaller quantities until you get up and running? Its sounds as if your customers will pay up front so its not as though you are having to offer them credit. It sounds as though you just need money for stock.

 

We were both unemployed when we started our business so I know it can be done if you re invest your profits. We managed to get some of our peers and suppliers to help us out in the early days until we generated sufficient money to extend credit to our customers.

[steveroberts 10]

Danz

 

Some observations on your post.

 

1. If you need to borrow £3000 and will not be paying it back for 18 months then I have to assume the £3K is either to allow you to buy you 18 months worth of stock or the margins are so small it will take you 18 months to make enough money to pay it back; either way how is this a great business idea?

 

2. At the rate of interest you are offering, surely somebody like Wonga would be a good place to go and borrow the money?

 

3. If anyone is going to lend you money, they will take into account your credit rating (and/or would want security). Do you not have any family/friends who could loan you the money?

 

4. Given your poor credit history, what reassurance can you give to a lender and why should they lend to you?

 

I sincerely hope you have a great business idea, but I am very (very) doubtful you will find an individual to lend you this money who does not know you personally.

 

All the very best though.

 

---------- Post added 24-11-2015 at 14:50 ----------

 

Cheryl, you beat me to it but great minds think alike

[Waldo 96]

Isn't it possible to buy a smaller amount of stock, to fulfil some existing orders; once you have money coming in from some sales, invest it in more stock?

[rowlolad 10]

Asking to borrow money and declaring a poor credit history doesn't exactly strengthen your case.

[Danz123 10]

Thank you for your replies.

 

I am new to this and therefore put 18/24 month just as I know thats is what most loan companies offer ideally I would like to and belive I could pay it off alot quicker than the time stated.

 

I have contacted the wholesalers to see if I can have credit and do it that way but unfortunately the wholesaler I will use doesnt offer this facility.

 

A good idea would be for me to get bits at a time and build it up that way I think thats what I may have to do just wanted to turn this around quickly so thought id ask for advice.

 

I made people aware of the situation about my credit history as I wanted to be honest from the get go.

 

Thanks for your advise.

[tinfoilhat 11]

Thank you for your replies.

 

I am new to this and therefore put 18/24 month just as I know thats is what most loan companies offer ideally I would like to and belive I could pay it off alot quicker than the time stated.

 

I have contacted the wholesalers to see if I can have credit and do it that way but unfortunately the wholesaler I will use doesnt offer this facility.

 

A good idea would be for me to get bits at a time and build it up that way I think thats what I may have to do just wanted to turn this around quickly so thought id ask for advice.

 

I made people aware of the situation about my credit history as I wanted to be honest from the get go.

 

Thanks for your advise.

 

If your cash flow is good maybe a credit card? Some are less choosy than an outright loan. That said, if it all goes pearshaped you could be paying it off for years.

[steveroberts 10]

That said, if it all goes pearshaped you could be paying it off for years.

 

Not on a credit card as it is unsecured lending (which is why interest rates are so high); but I am guessing the OP's credit rating would not allow him to get a credit card.

[AmourDesign 10]

Startup Loans Company

 

https://www.startuploans.co.uk

[sjbrun 10]

Probably your best bet is paypal working capital lending.

 

Just go to your paypal account, click on partners on the bottom and then apply there.

[Chez2 10]

You don't seem to have any sort of business plan otherwise you wouldn't have mentioned the 18-24 months as a loan just because you thought that was norm. Getting a business on a stable footing is all about cash flow. Businesses can grow too quickly and end up folding because of cash flow problems. Steady sustainable growth is far better than taking loans.

 

As already mentioned, buy a small amount of stock then re invest the money to buy new stock. If people buying habits change you don't want to be stik with stock you cant sell anyway.

[Orzel 10]

Get a partner with cash.

I would have invested in a idea that would seem worthwhile.

If everyone will tell you its a stupid idea they are probably right.

Given your poor credit history you probably don't make good financial decisions.

Or are very unlucky.

You should already know that so get your idea evaluated by someone with money.

3k GBP isn't a massive amount.