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Money to start a business?
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Right Im 18, just finishing my A levels, and would like to open a shop!
Im thinking this probably wont be realistic as I have no money and I doubt a bank would give me any? Would anyone care to tell me I am wrong?!
I only want something small....our town needs a dvd rental shop....hmmmm
Im thinking this probably wont be realistic as I have no money and I doubt a bank would give me any? Would anyone care to tell me I am wrong?!
I only want something small....our town needs a dvd rental shop....hmmmm
0
Comments
In terms of funding, Princes Trust is probably your best option to start with.
Yeah, this is what I was thinking. Realistically, IMO dvd rental stores only have a few years before they are obselete. Meaning, you'll only have a few years to repay the money for the initial stock purchase, which like IWS said - won't be cheap.
No thats the only way a BANK would look to lend any funds.
Princes Trust will be the best place to start for the OP situation.
True, but getting backing from the prince's trust isn't easy- I have a friend who tried and was dismissed as they felt she wasn't worthy of it.
You don't actually need any security to take out a bank loan, as all the major banks will allow you to borrow through the DTI's "Small Firms Loan Guarantee" scheme. Essentially, the DTI will secure 75% of the loan amount, with either yourself putting up a bit of the cash or the bank taking on a certain unsecured amount. You do need to pay a small premium to the DTA (via the bank) for securing the loan however.
I have personally borrowed six figures from one of the major banks through this scheme. I was purchasing a Subway franchise at the time, so had the backing of the brand obviously, but I still had to produce five year profit projections, marketing plans etc. It's hard work preparing all the necessary paperwork, but it can definitely be done if you can prove you're idea's a good one and you're capable of running the business profitably.
Most banks will quite happily give you all the information you need if you go in and ask, you might even get a free coffee if you're lucky! Business banking is big business for them remember!