Whats The Chance That I Will Get My Business Loan Granted By The Bank?

**MissBossLJ** · 01-25-2010 05:05 PM

right well basically.

i am asking for £10,000

i have proof i can repay the installments and so fourth.

I have prepared:

business plan
marketing breif
proposal
profit and loss account individually for each month and also yearly for three years
cash flow forecast for three years
break down of whats the £10,000 will be spent on

the loan they are offering for £10,000 is at 10.9% apr. And i have proof that i can repay the installments

My business plan has a big ROI

and i have done all i can to minimise any risk involved.

im 18, i have no bad credit history or etc.

i will be going into the bank this week and preposing the business plan and such.

What are the chances i will be granted the loan, i have literally covered every single thing and more of what they ask for.

Thankyou

**HopAD** · 01-25-2010 06:36 PM

Unfortunately, I think your age will be the limiting factor in this equation. You have no credit to speak of and no track record as an adult businessman. 10.9% is incredibly high anyway. All of my credit cards have a lower rate than that.

**ndawson293** · 01-25-2010 07:00 PM

Actually I think you have a pretty good chance, £10000 is relatively small for a business loan, anything under the 25 mark is much easier than anything over and tends to be unsecured. Some credit cards
may even let you go up to £10k. I know they could a few years ago but not too sure if thats changed.

**HopAD** · 01-25-2010 07:21 PM

Originally Posted by ndawson293

Actually I think you have a pretty good chance, £10000 is relatively small for a business loan, anything under the 25 mark is much easier than anything over and tends to be unsecured. Some credit cards
may even let you go up to £10k. I know they could a few years ago but not too sure if thats changed.

Granted, 10-20k is not a lot, but they don't just hand out loans to 18 year olds. Not saying that the OP doesn't have a great idea or that he isn't the next Richard Branson, but the fact is, banks don't like young people with zero credit. Keep us posted.

**rogercbryan** · 01-25-2010 07:29 PM

I'm not sure a business loan is the best approach. You may just want to apply for a line of credit. You'll have to show current (not potential) ability to pay back the loan to get the loan. Have you tried BBS? That stands for beg, borrow, and steal from your friends and family? Have you looked at credit cards to get a little money and start building your credit? I wish you the best of luck but business loans are hard to get even for seasoned entrepreneurs. Let us know how it goes so we can help you with plan B or help you get started.

**MissBossLJ** · 01-25-2010 08:05 PM

true, but surely if i really sell myself and i really am positive within my business plan i have planned more then i think any 18 year old would have every i think that the fact i am 18 and have done all of that will impress them, the business shows really good ROI and i could easily afford to pay it back. i dont want to go to credit card use. also the family and friends option is a no go for various reasons the bank loan is essential. Can you give me any tips to help me when i go in there preperation wise with the plan etc as i said i am fully prepared but what about how i present it.

**Chaseb731** · 01-25-2010 08:31 PM

I'm 17 turning 18 extremely soon so I'm in the same position as you it seems like. I've written a plan and have shown it to a few family friends not my own age and I think a few of them would be willing to cover my costs which I will be returning with a % of the income I will be making (Have you asked everyone possible?)

What would happen if your business went under and you had to pay back the 11k (Interest) with no source of income? That's what the banks are worried about, so convince them otherwise

**ndawson293** · 01-26-2010 04:55 AM

Which bank did you go to by the way? There are a huge number of small, less well known banks that will offer you much lower interest and be more willing to approve the loan.

They need every customer they can get in order to compete with other banks, I would definitrly suggest looking into it.

**MissBossLJ** · 01-26-2010 09:36 AM

barclays and i have source of income which is not the new business im starting which can prove i can pay the installments even if the business failed. i booked it today. its for friday at 2pm. They said it all relies upon the cash flow forecasts which i have prepared ready anyway. just putting the final touches to it. i doubt ill get the loan but they said as its a business loan it doesnt rely onc redit history or age its all about my cashflow forecasts

**rogercbryan** · 01-27-2010 08:56 AM

Originally Posted by MissBossLJ

true, but surely if i really sell myself and i really am positive within my business plan i have planned more then i think any 18 year old would have every i think that the fact i am 18 and have done all of that will impress them, the business shows really good ROI and i could easily afford to pay it back. i dont want to go to credit card use. also the family and friends option is a no go for various reasons the bank loan is essential. Can you give me any tips to help me when i go in there preperation wise with the plan etc as i said i am fully prepared but what about how i present it.

If this was the 50's you'd be in good shape. There is so little decision making done by people. All of your information will be plugged into a computer system that will shoot out an accept or reject. The best proposal in the world will mean nothing to a bank. That's just the way the world works.

You may have to start looking to private financing from an individual which is much harder to find.

**leggomygreggo** · 01-28-2010 09:17 AM

I think getting a loan from the bank should be your absolute last option. As someone stated above, beg, borrow, and steal from your friends and family. Try to find money in any way possible and bootstrap the hell out of your business. It will not only save you a lot of headache but it teaches you to be a better business person. If you can start your business without a bank loan then you will be unstoppable.

You really have to stop and think about the possibility that your business will fail. Having to pay a 10k loan is quite a doozey.

**SteveG** · 01-28-2010 11:22 AM

If banks loaned money on projections they would all be broke. I find it hard to believe that the bank is depending on your cash flow forecasts. Everyone I know who has prepared them tells me the bank won't even look at them. They are meaningless. They at best show some thought and palnning going into the business. Steve

**MissBossLJ** · 01-29-2010 09:44 AM

i went to the bank today they told me i have a 50/50 chance of getting it. they want me to put 4 upfront though so i said yes. I will hear back on wednesday. They were really impressed with my business plan though and everything. But im not getting my hopes up they said the only thing not on my side is that im 18 they say lack of experience etc.

**rogercbryan** · 01-29-2010 09:49 AM

Originally Posted by MissBossLJ

i went to the bank today they told me i have a 50/50 chance of getting it. they want me to put 4 upfront though so i said yes. I will hear back on wednesday. They were really impressed with my business plan though and everything. But im not getting my hopes up they said the only thing not on my side is that im 18 they say lack of experience etc.

Put 4? Does that mean 4000? If that is the case then you should have mentioned before that you had some capital in fact you have 40% of the needed capital. That makes a huge difference... let me know if my assumptions are correct now.