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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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
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