Originally Posted by
eoeumc
So if I was to go to a bank and ask for a business loan (I have a business idea I want to run with) what do you think the outcome would be?
Baring in mind I have no income (been out of work for more than 18 months and I don't sign on) I have a child benefit that comes in each month and that's it. My argument would be that if I could get the business going would have my income to be able to take any payments out. I don't have any money saved (don't get much to save any) and I am always at the top end of my overdraft but rarely go over it.
What do you think my answer would be? lol
Originally Posted by
r06ert
eoeume
base your approach on the Campari list below, which should be included in your business plan,
r06ert, very good response because thats exactly how banks look at business applications.
New start up businesses are very high risk, of you have a history with the bank, a decent credit profile, and a robust business plan based on the CAMPARI and ICE assessment then you do make things a lot easier for you.
At the end of the day, Banks are not venture capitalists who are willing to take risks, Banks don't really like too much risk. The main crux of your application would probably be you have been out of work, if you don't have any savings or assets to back it up, then that will hurt your application.
Ultimately the first port of call will be credit history if you don't have an account with the bank, if that's good you could potentially walk out with a business account with a £10,000 overdraft or loan. I have done that for a few customers in the past. If the initial application declines for the amount you need, then we can take your business plan and refer it to our credit office. If your plan is good enough and you have submitted evidence to back up your plan then again it could be approved and they will look at it as per the CAMPARI & ICE. If that fails then you have to look at other means.