Loans For Small Businesses Uk

Donna asks…

Where can i get funding for a new business? UK?

Okay. I have an idea to start up a cleaning business. My company will offer domestic and commercial cleaning, aside other small tasks, locally. My company will use eco-friendly products and recycle where possible.

I have no personal capital, as i am only 20 years old, but have compiled a detailed business plan and strongly believe that this will work. The company will require low start-up funds of £2500 and will initially be ran from home. The costs are for uniform, a website, insurance, supplies and stationary (Letterheads, business cards)

I know my market and predict the company making a profit of around £25k in the first year, rising to £75k by year four.

I would prefer a grant as i don’t want to start business in debt. I have a poor personal credit score. (Defaulted on a bank account and small arrears, my total debt is less than £2000) but if banks offer loans to businesses despite this, then i’d be happy to do so.

I just want to get the business running, i know there is a gap in the market locally and intend to break into it.

My USP is based around trust.

Any views, opinions are welcome, but i do need to work out how to get funding to get the business off the ground.

admin answers:

Be very wary of dealing with anyone who is not regulated or authorised under the FSA or OFT.

Try your local chamber of trade and commerce-these are very good for new business start ups and will point you in the right direction.
If you are currently unemployed-try inbiz via your local DWP offices.
There are also regional development offices offering grants and support.
Hope that helps…..and good luck with your new venture.
For help to deal with default or credit issues on your credit history visit

Charles asks…

“Ethical” UK banks behaving like this?

How can Banks claim any ethics whilst they broadcast that they are “open for business” to small businesses and “disappointed” at the take up of business loans, when it is common knowledge within the Banks they have no intention of lending the money.

Gordon Brown lent the Banks on the promise of releasing funds for small businesses, in truth they trousered it!

This being compounded by the covert universal policy of not saying yes or no, but pissing people about for months until they go away, raising their hopes and then through cowardice dashing them.
Tin God-wrong. British Banks have an unwritten policy of not lending, irrespective of the borrowing criteria being met.

admin answers:

Its PR to make the banks look better. In all reality most of these banks have well lets say dubious methods of operation and questionable moral standards. Look at a bank the same way as you would a casino,its there for one reason , to make money, nothing more,nothing less. If you cannot make money for them or do not have a sufficient amount for them to gamble then your bad equity my friend. But on the flipside without normal people banks would have nothing, organise a nationwide boycott of a chosen bank,and you will see who needs who, the banks want you to remember why you need them, thats why, they own you, when in all reality the fat cats jobs are in the ordinary peoples hands. Go figure

Daniel asks…

Business Bank Accounts UK with poor credit. Companies that guarantee to open 1 for a fee – trustworthy?

Hi, Im hoping someone kind will help me! Unfortunately I have poor credit history, thanks to an unscrupulous ex. Im dealing with debts I shouldnt have, but Im doing ok. And I dont live on benefits before I get any rude comments! Ive started a small business, which looks to do nicely, but am currently using my own basic bank account. I really want to make a success of it for mine and my children’s sake, but my bank turned me down for a business account. Ive heard a lot about these companies that will ‘guarntee to open a ‘Big 4′ account for a fee . How does this work, are they trustworthy, and if anyone has done it this way – how did they get on? I really hope someone can give me some advice, as I really want to open a business account. Its going to take some time for me to build up my credit rating again. I dont want loans, just the opportunity to make this work in an easier way! Thanks xxxxx

admin answers:

Hi, Firstly let me tell you that the previous person stated that if you can prove that it was not your debt then you can ask to be set aside. Yes correct! But the key point is that if you were cohabiting or married and the funds or the goods were used by both then you are equally liable. At times it will be hard to prove and need to spend quite a bit of time for the process.

Your answer to the question. Yes at time they do work but not always gauranteed. Try Alliance and Leicester for a basic Business Account, they might not offer you and form of Credit or Debit Cards. They will offer you an Electron Card to take money out. How ever be causious that the more often a credit check is done on you the more it will affect you.

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