I have a business which has been in operation for 3 months but has not traded as yet. It does not look as if it will trade in the near future due to a lack of capital to create the necessary infrastructure needed.
What is the best way of obtaining a loan for said business? Would problems occur because I have no track record of being in business and it is a one-man organization (I am the Director).
Ideally, what I would need is between 10-15K for start-up costs, obviously with a low as monthly payment as possible. My concerns are simply that I also have no security e.g. I live in rented housing, no car, etc. Would banks be willing to lend to me?
An alternative, would be for myself to take out a personal loan, bearing in mind I am the Director of the company and at some point when the company is profitable, I will naturally pay myself a salary. Is this a more viable action - because - once again no salary has been paid to myself as yet.
(I have no idea what level of checks and balances the average bank does. When I took out a personal loan with NatWest some time ago they did not ask for any proof of income, but then again my salary was paid into my account. Had the salary not been paid i.e. no obvious credits entering the account, would I have qualified for the loan. If this is the case how do unemployed people get loans?)
The last thing I would ever consider if some dodgy company on a massive interest rates!