Debt / Credit Rating & Starting a Business?

[winjas]

Weird one this but no harm in asking....

I have a poor rating etc, trying to sort some PDL hell out as covered elsewhere, only 1 default on my credit score but not much else either.

For few years i been keen to start my own small business, never done it as no finances to back me, or get off the ground. Now been offered some work related to that business idea and everyone's like "with your experience and expertise, you'd be a success no problem, why you working for someone else etc"

So crazy as this sounds, with my own poor-ish credit etc, is there anywhere that would do business start up loans or even grants to me. Assume if i applied for a business startup loan then the banks etc would check me personally to decide (as would be a sole trader etc) and pretty much say NO in capital letters?!

I basically don't know the ins and outs of starting a business financially, especially when my personal finances a mess already. Should i just give up the dream or is there any avenue open to someone in my situation to get off the ground?

[SXGuy]

Re: Debt / Credit Rating & Starting a Business?

Im personally not to sure what would happen being a sole trader, they might do a background check on you, someone else will comment.

Id like to think though that if your business plan and cash flow forecast is solid, they would be inclined to help. Could be wrong.

Dont go down the ltd company route though, you wouldnt want that headache in my opinion, at least as a sole trader all the money is yours.

[winjas]

Re: Debt / Credit Rating & Starting a Business?

Thanks, i probably to be fair look only to do this business part-time for the first year or so whilst still working full-time. Its the fact i would need 10k min capital to buy equipment i would need to get started. Hmm

[SXGuy]

Re: Debt / Credit Rating & Starting a Business?

Toughy.

With a good business plan you could get a 10k overdraft, but again, not sure if they would do a credit check.

Theres no reason why you shouldnt try, worst case is they turn you down, but go to a few banks, turning you down isnt always the same reason.

I got a 10k overdraft and 40k loan from HSBC as a business start up some years ago, i didnt have a bad credit rating tho i must admit.

[mgfboy]

Re: Debt / Credit Rating & Starting a Business?

If you have a default , it might even be difficult to get a bank account open for business purposes with any of the main clearers.

As for a 10k loan/OD depending on as SXguy says your business plan and what market your going into and in the romote chance they may give you one, they will want some sort of security ( first born child etc).

But go for it, if thats what you want to do and can make it happen.