Any good banks out there for getting a business loan

[jack-rice]

about mortages..

A mortgage is basically a loan specific to the real estate market. Typically, it covers 70-90% of the purchase price of a house or other property, with the penalty for non-payment being foreclosure, or reversion of the property to the lender. They are available from most banks, credit unions, portfolio lenders and some government agencies.Mortgage loans usually employ a 30-year repayment (or amortization) schedule. Payments are a changing combination of interest and principal, so that in the early years a payment mostly consists of interest on the outstanding principal balance, but in later years the mix becomes much more heavily weighted toward paying the principal itself. There also is private mortgage insurance to consider, which is required if less than 20% is put down on the house. It has gotten easier to actually get rid of this extra payment as soon as possible.Learning the administrative and legal aspects of the loan process is essential for anyone considering a loan. A borrower should know what contracts and documents he or she will encounter, and how to negotiate through the paperwork. Also, it is important to be aware of what fees may be assessed and how to minimize or eliminate them wherever possible.more about loans

Re: loans

I have to agree with you there Marillionfan.

We did got to one of the Big Four and they wanted us to put up the money we were hoping to loan as collateral for the loan! I wonder if they have read Catch 22...

However, their Bank Managers advice was exactly like yours. Take out a personal loan. You can get that easy!!

So much for the big four helping small businesses

Re: loans

"If your business plan stands up, go to one of the big four. If it doesn't stand up, drop the idea of starting up as you'll lose money "

Thats a complete load of tosh. Basically if you go to one of the big four and they say 'no', it's got bugger all to do with whether the business will be successful or not, and all to do with whether the bank can get their money back.

Highstreet banks ask for ridiculous lending critieria. I have recently gone (again) for a loan to buy a commercial,investment & residential property. I was asked for minimum 30% deposit and offered such fantastic rates as minimum base + 3 and base + >3, as well as a 1.5 arrangement fee.

Previously when looking to borrow £40k for a business, the bank asked that I put down £40k and stated that I would need £80k in equity as an extra gaurantee!!! Instead, the bank manager eventually agreed to giving me a £25k personal loan and a £10k overdraft both of which were cheaper than the bloody loan!!!!!

Bankers all of 'em.

Re: loans

Yes familiar with Business Angels,thanks.

Thanks all for advice. Been very informative.

Re: loans

Mikesed,

Another route is the Business Angel one.

Are you familiar with the terminology?

Re: loans

would not recommend VC route - both from direct and indirect experience. In any case VC want fairly high figures earned within 2-3 years and I mean LOADS.

Personally I am planning to put part of my savings into company and finance solely from earnings.

Grants (I am not eligible) is actually a good thing so long as you dont need lots of money, I mean you cant count on £50-100k without something serious at hand.

If your business plan stands up, go to one of the big four. If it doesn't stand up, drop the idea of starting up as you'll lose money

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loans

I would say that your chance of getting a decent business loan for a start up is v low.

the banks will not be interested unless you put up personal collateral.

try vc route or the dti for any info on grants that might be available.

consider relocation to north wales / teesside / a.n.other depressed area of europe.

re

"In Britain banks are not associated with business loans"

of course they do. who else would?

Try first direct

they offer good rates for personal loans but im not sure about business loans

I'm sorry to say you are in the wrong country.

In Britain banks are not associated with business loans - it is too riskee for them.

Milan.

Gents,

Just kicking off a start up company with some colleagues.

We've approached the "usual" suspects for a loan and whilst we are into the early form filling stages I have to say I am not impressed.

Does anyone have any recommendations for banks (or similar) for obtaining loans.

I'm looking for someone who will treat us like business people and not provide some minor admin form filler as our "personal business advisor!".

Cheers,

Mike