Business Plan Question

LouOH

Hi,
My first post so apologies if I've done this arseways! :rolleyes:

I'm wondering if anyone knows if you can get a business loan to cover training as well and business start up etc.
Basically, I'm in the process of doing a business plan and I need to get funding for a two month course to start off with. Also, I’m leaving a good job and have the usual mortgage and bills etc to cover for these two months and how ever long it will take me to get up and running. I will be putting my savings into this too but it won’t cover 100%.
I understand that it will be more difficult to sell this to the bank but am I completely wasting my time? Is this something that the banks consider?
Has anyone had any experience with this?

tommyalph

With the present economic climate its gonna be hard to convince the bank.

You have a few options:
- Keep working and do the course as a night course or distance learning
- Make sure your business plan is immaculate and approach your local enterprise board
- Or look for investors, this will end up with you earning less to pay them their share but start up is easier also make sure ur business plan is immaculate for this too

Jus a few options which get away from the banks which is probably a wise choice.

LouOH

LouOH wrote: »

Hi,
My first post so apologies if I've done this arseways! :rolleyes:

I'm wondering if anyone knows if you can get a business loan to cover training as well and business start up etc.
Basically, I'm in the process of doing a business plan and I need to get funding for a two month course to start off with. Also, I’m leaving a good job and have the usual mortgage and bills etc to cover for these two months and how ever long it will take me to get up and running. I will be putting my savings into this too but it won’t cover 100%.
I understand that it will be more difficult to sell this to the bank but am I completely wasting my time? Is this something that the banks consider?
Has anyone had any experience with this?

How much is the training course, and how much are you putting into the business yourself?

LouOH

The course is €5800, I'm putting in €10000 and looking to borrow the balance of approx €15000 (including the course).
The problem is I need to know if I can get the funding before I do the course as I'll have to leave my job to do it. It's a bit of a chicken and egg dilemma!

First thing, aside from your dilemma is you should consider asking for double the 15,000 from the bank because its unlikely they will give you the full amount that you want. Thats my experience some others may have had a different one.

Then just present the situation a bit differently. Go to the bank and say you are putting in 10,000 and wish to borrow 30,000. In your costs put the training course as a start up expense along with all your other start up expenses, but don't make a big issue out of it. If you are finding it hard to justify a bigger loan, think up some marketing ideas that need advertising spend. if your afraid you might get the full 30K and dont want those kinds of repayments you could always ask for the second 15K to be an overdraft facility.

Remember you need to sell yourself bigtime. I remember applying for a loan and the manager rang me back up and said "its a good plan, but we think you might be too much of a risk" I told him pretty aggressively that I had been with the bank since I was 12, i had X savings in the bank, never had an overdraft and never missed a credit card payment, how could I possibly be a high risk?" After that he approved the loan

LouOH

That’s a good idea, I hadn’t thought of that. I will definitely ask for more than I need and have the additional as an overdraft facility. I definitely don't want the full 30k, I'll be starting small so those kind of repayments wouldn't be feasible. But it would be great to know that I have the back up of an overdraft facility of needed. Do you know if this is something that can be cancelled or reduced at any time or is this something that the bank will make difficult for you?
This is all new to me, so all of this info is really helpful, thanks so much!

LouOH

LouOH wrote: »

That’s a good idea, I hadn’t thought of that. I will definitely ask for more than I need and have the additional as an overdraft facility. I definitely don't want the full 30k, I'll be starting small so those kind of repayments wouldn't be feasible. But it would be great to know that I have the back up of an overdraft facility of needed. Do you know if this is something that can be cancelled or reduced at any time or is this something that the bank will make difficult for you?
This is all new to me, so all of this info is really helpful, thanks so much!

I think some banks will charge you a fee if you pay off a loan too early. I would ask the question, and request that the fee is removed if they have one.