self employed/loans

pclancy

anyone any experiance with this? ive just started a business and have been doing well over the last few weeks. Ive had very little money get back to me yet though and my account is overdrawn about €1500. Im trying to get finance to buy a van but i keep getting rejected. When I was working for another company i could get a loan up to 25K no problem but now that seems to have changed.

Any suggestions for self employed, overdrawn people to get loans?

davelerave

lenders will probably want to see some record of income over a period of time,i'm in the same boat self-employed always overdrawn ,how much are you looking to borrow,maybe you could lower your sights buy second-hand with a vat receipt included if you're registered ,don't get a bad loan deal anyway just because you're stuck

Victor

Originally posted by davelerave
lenders will probably want to see some record of income over a period of time,i'm in the same boat self-employed always overdrawn ,how much are you looking to borrow,maybe you could lower your sights buy second-hand with a vat receipt included if you're registered ,don't get a bad loan deal anyway just because you're stuck

Be very careful about relying on your debtors to cover your loan, you are hugely better off getting into a better cashflow position before you apply for the loan, this protects you and gives the bank some record of your earning potential. Make sure that you are lodging your income to a bank account. Get payment protection in case your debtors don't pay and you aren't able to work.

davelerave

Originally posted by Victor
Be very careful about relying on your debtors to cover your loan, you are hugely better off getting into a better cashflow position before you apply for the loan, this protects you and gives the bank some record of your earning potential. Make sure that you are lodging your income to a bank account. Get payment protection in case your debtors don't pay and you aren't able to work.

what are you saying??

Lawdie

This may sound rich, but have you tried putting equity (say around 35%) into the deal. Most finance companies are scared of lending out full finance to new self employed people in start up business.
Also look for a guarantor, someone who has a previous background.
You did not mention what type van.

I've never had your guts in starting my own business and I take my hat off to you. However, I know that credit control is paramount to big and small companies.

Good luck with the venture

pclancy

cheers. as it turned out the dealers finance company themselves have approved me full finance to get a 02 VW Caddy so im delighted with that. My current problem is trying to insure it. 21 with a crash last year.

thanks for all the advice.

Victor

Originally posted by davelerave
what are you saying??

I got screwed by having large debtors and creditors at the same time.