Starting Up Funds

fencedin2012

Hi,

I am trying to start up on my own.

For 3 yrs. and seven months I have been suffering the affects of the crash in the Construction Industry.

I am a builder who works with my son (when there is any work going).

I used to be a well respected customer with my bank. Now they do not want to know me.

I try to get work through advertising on free sites or sites that only charge a minimal fee.
I have set up 2 websites for free through "Getting Irish Business Online".

I would like to know is there anywhere or anyone who can offer Start Up Funds to someone who will not be entertained by our Irish Banks.

This is a genuine request.

I need funds for a second hand van. Tools. Money for advertising on local radio and in newspapers. Money for materials.

I have approached the Enterprise Board but I would need to employ up to 10 people and be exporting before I would be considered by them.

I do not want any replies from Money Lenders or Lenders who charge exorbitant interest rates.
I am trying to dig myself out of a financial hole, I do not wish to dig myself further into it.

To sum things up, I am looking for a second chance.

Hope to hear from someone genuine.

ICCM

I have sympathy for your situation as we are all struggling and the banks seem to have adopted a head in the sand approach and do not seem to understand that the economy will not start moving again until they start redistributing the huge funds that they are receiving from the taxpayer

You seem to doing all you can to generate what little business there is out there, you mention that you previously worked in the construction industry and work has more or less dried up however you havent mentioned what type of business you need the start up capital for.

Regards

PJ

Gloomtastic!

Those dog runs would make good chicken runs as well I reckon!

Good luck to you!

Hanley

I'm not sure if it's viable for you, but credit unions are lending. I know they'll go to 2.5x the value of your shares.

You seem to have a fantastic attitude tho, so good look in whatever you do!

ICCM

Diversifying into new areas and finding a niche for yourself is defintely the way to go until things recover in the construction area so good luck with it, I agree with the above post, Credit union is probably your best bet,

fencedin2012

Thanks for your suggestions.
Unfortunately I don't think the Credtit Union would welcome me with open arms either.

Chet Zar

Go to BOI OP?! They have tv ad on at the minute with the voiceover claiming that they do lend and want to lend! If they don't want to know, play the ad back to them!

I suppose it will depend on your credit history, etc, but I think it is very easy to overlook the banks - all you will hear these days is that they aren't lending, which can't be true for all of them at least.

fencedin2012

Yes I have seen this BOI advert myself.
I wonder would it be worth approaching them.
Is there anyone who would know if my case would be considered by BOI ????

You need to have a decent credit history, and you need to be putting up the same amount of money as your borrowing, then you have a chance. Also you need a decent business plan, proper projections for 3 years min, a realistic chance of getting enough work to pay off the loan and so on, plus you'll be signing a personal guarantee on the loan. Sounds like a tough sell from your initial post.
If you can get the jobs through your advertising, why not do them with a mate who has the equipment now until you can afford to get your own? Either that or get a credit card somewhere and use that to fund purchases if you have the jobs sitting there waiting for you

fencedin2012

Thanks for this advice.

It would be viable prior to December 2008.
Since then many thousands of people have lost their jobs and their businesses, and are not in receipt of a steady regular income.
Thus they have fallen into arrears with their household commitments.

The personel debt situation in this country has reached crisis point.
People who once had glowing credit ratings are now in the doldrums of the Banks.
Through no fault of their own they have now been thrown on the scrap heap.

What is needed in this country is a Bank, organization or individual willing to take a chance on people who are crying out for a second chance.

Our economy will never grow if the ordinary person on the street does not have money to spend.

We will not have money to spend if we don't have work.

A small business, given the chance to get started, will employ at least one person.
This will be a small step in the right direction.

sandin

Not sure if its of help, but do you know anyone that earns over €35k and paying the higher rate of tax?

Then do you know if they would consider giving you some money / taking a small loan out for you in order to start the business rolling again.

The EIIS scheme is something that you should look into - here's a basic interpretation of it http://www.simple.ie/2011con/5.%20eiis%202011.pdf

Example - if you get someone to invest €5000 in you company and they agree to invest it for a minimum of 3 years, then they get and immediate 30% (€1500) rebate off their tax bill at the end of the year - so the 5k that you get is only cost them 3.5k. Then in 3 years time assuming the company is still going and has increased employment, they get a further 11% tax relief (€550) which means that the initial €5000 has only cost them €2950 and you've had the benefit of the full €5000.

After 3 years, you can agree to buy their shares back.


People who know you and know how you work are the best to approach. Best to get an accountant to draw up the papers and proposals to incude total amount wanted and how many shares each person gets per €1000 investment and tap extended family and others for funds.

Minimum investment seems to be just €500 - with banks giving max 3% on savings, even if you were only to pay back the capital amount wuth no interest, this equates to about 20% per year interest based on the tax relief alone.

dave98

Hi op, just wondering if you approached boi or any other lender?