Are you thinking about starting your own business in the UK? Starting your own business is quickly becoming a popular way to find full-time or part-time employment in the UK. Loan specialist Now-Loan knows more and more people want to start their own business but find it hard to get started.
The truth is that there are many good business ideas out there, but most do not come to fruition because of a lack of finance. Many budding entrepreneurs are not sure where they can get hold of the necessary finance or credit to get started. Traditional lenders such as banks do not necessarily offer the means to help or provide the required expertise.
Your Part Of The Deal
When you want to start your own business, and you need finance, it is essential you come up with a good business plan. This is often something most entrepreneurs find difficult. They have an idea but they don’t know where to go from there. Online resources and tools can help, but it is also a good idea to contact a loan provider. Take the opportunity to find out what information they need and how much you can expect to borrow.
Do I need to provide security for the amount of money I want to borrow? On some occasions, you will be asked to provide security for the requested finance. This could include securing the loan on your home or access to saved capital that you may already have available.
Your part of the deal consists of proving to a lender that you can make your business idea profitable and afford to pay back the loan.
The Lender’s Responsibility
A lender is not going to extend credit to you unless you can prove your business idea is going to make a profit. But, that is not only the factor that will matter to a lender. Having previous experience of the industry you are thinking about going into has added benefit. Setting up and running a business in an industry you are not familiar with is a real challenge.
When you can prove to a lender you have the relevant experience, he is more likely to consider your application for credit. After all, it is his responsibility to make sure you are capable of paying back the loan you have taken out to start your business.
How Much Money Can I Borrow?
This all depends on what kind of business you are thinking about going into. Some businesses will require more extensive credit lines than others. It is important to acknowledge that not all business loans are created equal. For instance, you may need an initial boost to get going, and a year later, you may need a cash injection to expand. This is what many lenders refer to as a line of credit.
Ultimately, how much you need to borrow, and how much you should borrow, is something you will negotiate with a lender. A bit like the Dragon’s Den without the TV cameras and all of the razzmatazz. Thinking of your finance or credit line as an investment will help you to appreciate your need to recover the money. You basically need to show you can pay the loan back
The financial advisers at NowLoan are happy to discuss business finance and credit opportunities with you whether you are a Startup or already have a profitable business. When you are ready to find out more, give them a call and they will talk you through the various options available.