I live In Scotland, I want to set up my own business, actively encouraged by the government who would like to see an increase in entrepreneurship in our economy. But I come across a problem in my steps to make a loan. The total amount for this business is 50,000, that I don't have. The banks that I have contact, claim the 20% of this sum (10,000) Who could help has get this loan? I live In Scotland
How can you be so definite? Remember the Scottish parliament building!
Joking apart, is it some fixed price franchise type scheme?
I suspect borrowing £50k from the money industry to put into a business that doesn't yet exist might not be possible.
You have to understand that the people doing the lending (If they are ordinary banks) derive no benefit if your business succeeds, they just get their interest which is currently at a very low rate and does not compensate them for taking any risks.
Two suggestions which come to mind are:
Start from a lower base and work your way up.
Investigate if anybody within the family is in a position to back you. It could be an interesting prospect for a relative who has cash saved for his retirement in a few years time.
DG
In message , cea2000 writes
The bank dont claim 20%, they just want you to have some sort of cash stake in the business, wich is there standard practice. They will lend money to help with a business but if the give you all the dosh they may as well run the business yourself.
If it is a 'start up' business this makes it even harder.
If you own your own house, do you have any spare equity in it?
Good for you.
You have a sense of humour. That's good too.
Make a loan? You want to start a money lending business?
Without a decent ability to express yourself in written English, it is hardly surprising the banks don't want to help you.
I don't think business is a good area for you to get into.
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