Information when starting a business regards capital

Kennethh184

Hi
Ok so bare with me I'm going into detail here as I am unsure on where I stand
Firstly i am 20 years old with a great business head I'm running my own sheep farm on my own the past 7 years most my profits are going back into it as the place was very ran down and I needed to buy everything from stock to fencing to water pipe and throughs to machinery, a very expsive hobby alot of my own personal money and profits keep things running I never in 7 years paid myself a penny, I'm with bank of Ireland, the farms owes nothing to the bank and profits are put back into the farm. (Which has decent turn over)

At 15 years of age I was on dragons den I came 2nd in the young entrepreneurs awards 5 years ago.. dragons den was sponsered by bank of Ireland that business is now closed.. I also done my banking with bank of Ireland (short story is, they know I'm business minded)

Lastly I dropped out of college last year was offered a bank of Ireland student card, which I maxed out due to college expenses... I am now still paying that back up to recently between farming and no income or little income from November to 6 weeks ago I couldn't afford to repay what I owed.. it was only a couple 100 quid I am just financially back on my feet now but my account is in arrears

I have taught of a great business idea never taught of before and I believe it will work I need alot of capital to get started off, as I'm renting my farm I have no collateral.. what's the odds of me getting a loan of at least €200000.. keeping in mind I had no regular income up to 6 weeks ago my student credit card account is in arrears not paid since November the plus side is I'm successfully set up and kept a farm going the past 7 years and I have set up and being on dragons den at 15.. I'd expect my credit rating is **** but id like to know in my situation how things could go with securing my capital

Alucan

Sorry to be so blunt but not a hope in hell of getting that money from a bank.
If it is really a good business idea getting an investor might be a way forward. Your two statements that you have a good head for business and that you are running a farm for seven years with out paying yourself are kinda contradictory. If you want to go into business I would suggest doing a start your own business course first off.

DubCount

I cant see any bank giving this a second look. Regardless of your track record with them, banks will be concerned about your ability to repay and collateral. Without collateral or another source of income, banks will simply view the risk of lending you the money as too high.

I understand you have re-invested money into the sheep farm in stead of withdrawing it. Is there value in the sheep farm that you could release by selling it?

Also, maybe have a chat with Enterprise Ireland who may give help in presenting a business plan professionally, and introduce you to some private investors who may be interested.

Bandara

Sorry i don't mean to be an ass here but you were not 'running your own sheep farm' aged 13 years old. You were in early secondary school. and you were incapable - mentally, physically and time wise of doing so. That is no way a slight on you or your abilities as a child - which you were aged 13. Also no farmer is renting his farm to a 13 yard old child. Its absurd to suggest otherwise.

Your saying 'you' have a farm that has no borrowings yet you allowed your credit rating to go negative over 'a few 100' euro. yet you have a 'great business head'

Furthermore you say its an expensive hobby that profits & your own money keep going. Yet you state you have never taken a penny from the business. So what personal money does a young person have otherwise barring an inheritance or a paper round ?

This is either a joke, or your leaving out huge parts of the real story to try to impress. If its a joke you need to work on your material. If its real then you need to stop making your self out to be something special, and give the real background so we can give you the advice you require. Banks will not ever care a single jot about dragons den (which is nothing but a show designed to sell advertising) or any awards. If what you are saying is true you are unable to pay a few hundred euro of a debt. Yet you are a full time student, which means you i would assume be paying someone a wage to operate 'your' farm.

I don't believe any bank would ever consider lending you 5,000 let alone 200,000 with zero security, a bad credit history for miniscule amounts, and a complete notives outlook.

13 year olds don't/can't rent sheep farms, for a multiple of reasons. So I'd suggest you start again and see if we can help.

Happy to assist if I can, but not if its Walter Mitty stuff

scamalert

did your 0 button got stuck 200k, bad credit history, no proof of income/profit/collateral and you say it might work.


you need to fall back to reality if you cant afford couple hundred euro, no savings, and something you dreamed up :cool:

Buttercake

Kennethh184 wrote: »

have no collateral.. what's the odds of me getting a loan of at least €200000..

Zero, have you tried asking the parents?