Practice Bank Loan?

Practice Bank Loan?

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we are a small practice with £220k fee bank, growing fees at around £10k per month.  

i'm looking for a bank loan of £25k to finance the next year or so of additional marketing costs to get us up to £400k ... i would also like to take a salary so hence why i dont want to fund all growth from retained profits. 

spoke to our bank today (HSBC), and they said that any borrowing >£3k is subject to personal guarantees.  i don;t want to provide a PG as i have personally held assets that i don;t want to risk ... albeit of course v. unlikely for an accountant, but still ...

has anyone any experience of taking out a simple business loan for £25k-ish without PGs within their ltdco biz?  is it worth trying other banks or is that pretty standard?  anyone got any experience of the Enterprise Finance Guarantee scheme?

cheers, LB2.

Replies (4)

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By Steve McQueen
29th Feb 2012 23:21

Very unlikely...

Much experience of financing all sorts of things and getting a practice loan for an LTD with no PG is extremely unlikely.

Your best bet is going to be the Enterprise Finance Guarantee Scheme, but when you put the case together you CANNOT say that you want to borrow the cash because I "would like to take a salary" or I "have personally held assets that i don't want to risk"

You need to demonstrate that you NEED the cash for the business and have NO ALTERNATIVE but to borrow and that to lend to you is an absolute certainty etc etc etc.

If you want professional help, email me at [email protected]

Regards

Steve

 

 

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Replying to fawltybasil2575:
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By Lancsboy2
01st Mar 2012 11:29

steve mac ... 

steve mac ... 

 

good man, thanks for that.  it confirms what i expected ... nothing doing.  

 

i will take some funds from the company pre-year-end and plead poverty to HSBC so that hopefully we can get the funds via EFG.  

 

i'll be in touch if the computer says no ... cheers, LB2. 

 

 

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By Beckie1679
01st Mar 2012 11:56

Hi

I had and EFG with HSBC when I set up my company. They still took a PG! so it may not be your best option.

I would look around at other banks etc.

 

Regards

 

Beckie

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Replying to DJKL:
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By Lancsboy2
01st Mar 2012 20:11

good news ... 

good news ... 

 

HSBC took a charge over a bond i hold with them personally, £25k agreed 3 yr loan.  

 

just need to generate £100k of fees from the dosh now ... gulp. 

 

cheers all, LB2.

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