Any advice on getting a business loan for a start up?

I have been working on my business plan and i am almost all set. But now i am worried about trying to get a bank loan. I quit my job because i wanted to concentrate on my business and because it wasnt for me. But now i have no income and no real assets. I am only 24 and have no real savings or anything. Will banks even concider me for a loan even though my business plan is really good?

Any advice on getting a business loan for a start up?
The first question is how much capital do you need before you reach positive cashflow? If it is very small, I would look to relatives/friends to invest or even possibly use a credit card.





Banks generally don't make loans against business plans since there are no real assets as collateral. Furthermore, there is no cashflow from a going concern to support debt repayment so the anticipation of being repaid is essentially 0 (from the banks perspective). Banks are not really in the business of assessing business plans.





What you are looking for is venture capital, but more specifically seed money. I would start looking for wealthy relatives and friends. Sometimes entrepreneurs leverage up with credit cards to get things going.





You should have your plan reviewed by several people who know business. You can also start sending it to venture capitalists.
Reply:Depends on how much you want to borrow. Most of the High Street banks would want some kind of security for large loans but if you're only after a few thousand then it's probably worth shopping around. Most banks will provide some kind of support for business start ups so just go and talk to them.


Some banks will allow a free overdraft facility up to an agreed amount. If you go down this route then you need to be totally confident in your business plan and be sure that you'll be in a position to pay it back.


Might be worth checking out your local Enterprise Agency as they can often have contacts for financing new businesses.


Good luck!
Reply:Banks will not consider a business plan. Banks look at Financial statements and credit scores.
Reply:You might need to check, but I think the Princes Trust gives loans for business start-ups for the under 25's. Or phone your local Business Link for free business advice.

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