Do I need a track record in borrowing money to set up a business?

experiMental

I'm thinking of setting up a business in a year's time or sooner.

The main question is, do I need to have a track record in borrowing money (e.g car loan, mortgage, evidence of financial investment and return on investment, etc) in order to get my new business officially approved by the government?

I have no experience in borrowing money (all I had was a credit card), and I wonder whether that would work against me when it comes to setting up a company.

terryhobdell

What approval do you need from the Government? I would strongly suggest you do a start your own business course before making any decisions about self employment. Your Local Enterprise Service who are in each county will help you find one.

experiMental

I mean, when I fill in my ( CRO form ), I could get rejected, right? Not every application is successful and sometimes people are asked to re-submit it, etc AFAIK.

But yes, good point on Start Your Business course. Is there a limited availability for those, though, and is there a competition for them in any way?

partyatmygaff

The only people who are interested in your record of borrowing money would be a bank or potential creditor. Either that or collateral.

The government aren't interested in your credit history.

skelligs

As above - I suggest you do a short business course or talk to a local enterprise board and get a little knowledge about business. Without looking like insulting you, you seem to have very little if any knowledge of setting up a business and this could prove disastrous to you if things go wrong.

Understand all your obligations as a director of a company and probably best to talk to an accountant. You'll find the small fee or the free courses will save you an awful lot of avoidable hassle.