business finance options

123donalo

I currently run a service industry with approximately 3000 clients and some 5000 overall customers with the last nine years. I now want to step it up a level and expand but its going to cost me €12,000-€15,000 to do so. I contacted bank and had a long meeting which I left without too much confidence of getting the loan etc.
Although our business is a success to date its been very stable in the last few years and therefore what goes in comes out etc not showing great profits hence the expansion. We also purchased some new vehicles when things were going well 5/6 years ago and repayments on these were restructured in that time due to difficulties in cash flow etc.
Its not a new business but an add on to what we already do so can offer the client more services etc.
All previous clients and new could avail of this service and is much more profitable and using it as an add would ensure we get larger contracts also.
I'm wondering could some one advise where I can receive finance for same or any advise in going forward please.
I will divulge more info privately to the right person who has questions and feel like they can help.

Regards

123donalo

123donalo wrote: »

I currently run a service industry with approximately 3000 clients and some 5000 overall customers with the last nine years. I now want to step it up a level and expand but its going to cost me €12,000-€15,000 to do so. I contacted bank and had a long meeting which I left without too much confidence of getting the loan etc.
Although our business is a success to date its been very stable in the last few years and therefore what goes in comes out etc not showing great profits hence the expansion. We also purchased some new vehicles when things were going well 5/6 years ago and repayments on these were restructured in that time due to difficulties in cash flow etc.
Its not a new business but an add on to what we already do so can offer the client more services etc.
All previous clients and new could avail of this service and is much more profitable and using it as an add would ensure we get larger contracts also.
I'm wondering could some one advise where I can receive finance for same or any advise in going forward please.
I will divulge more info privately to the right person who has questions and feel like they can help.

Regards

I recommend you go get a personal car loan. Either that or you put it on your credit card.

dbran

Hi

You could try these guys.

https://www.linkedfinance.com/

Kind Regards


Dbran

Admor Tony

Just wondering if you gave the bank any sort of a written plan (not necessarily a full Business Plan)? In other words did you show them in a structured way how you would generate sufficient profit and cash to service the existing and new borrowing? If it was just a verbal communication then your chances were always likely to be limited.

123donalo

Admor Tony wrote: »

Just wondering if you gave the bank any sort of a written plan (not necessarily a full Business Plan)? In other words did you show them in a structured way how you would generate sufficient profit and cash to service the existing and new borrowing? If it was just a verbal communication then your chances were always likely to be limited.

I had a verbal meeting but to be honest she just made it look so dismal as if I was wasting my time. I have intended to put forward a business plan but they are looking for so much more its frightening. I originally borrowed close to €50000 some 9 years ago no bother and now this seems very excessive. Structured payment plan wont do them I'm afraid needs to be full business plan even down to what if it goes wrong etc?

Graham

This might be worth a read, sounds like it could apply to you:

http://www.creditreview.ie

Admor Tony

123donalo wrote: »

I had a verbal meeting but to be honest she just made it look so dismal as if I was wasting my time. I have intended to put forward a business plan but they are looking for so much more its frightening. I originally borrowed close to €50000 some 9 years ago no bother and now this seems very excessive. Structured payment plan wont do them I'm afraid needs to be full business plan even down to what if it goes wrong etc?

Let's be honest, 9 years is a long time and that is the message many bankers are giving although (IMO) the reality is that they have funds to lend and actually want to lend it. They just need to be more sure that they can get get it back and I think most of us would agree that is not a bad thing.

So in my opinion you need a Bank Proposal (not necessarily a full Business Plan) that explains what you want to do, how you will do it and how you will repay any borrowings. Thus you need words to explain and figures to demonstrate.

I think the 'if it all goes wrong' comment may be more about showing some sensitivities i.e. what if you only generate 50% or 75% of the turnover you expect? Do you have a contingency plan? You need it as much as the bank.

The Credit Review option is there if all else fails i.e. you present a really credible proposal that demonstrates strongly you have a viable business and the bank still turns it down.

Graham

Hi 123Donalo, just discovered http://microfinanceireland.ie which may be an option for you.

Eligibility criteria:

• Declined finance by a bank
• Startup or existing microenterprise
• A Sole Trader, Partnership or Limited Company
• Employing less than 10 employees
• Turnover of less than €2m

They will consider finance in the €2,000 - €25,000 range.

You're encouraged to apply via your local County and City Enterprise board although they do take direct applications.

Admor Tony

That is a good ultimate option Graham although the OP will still need a Business Plan and 3 years cashflow projections. Provision of this to the bank and the level of detail was what seemed to cause some concerns in the first place.