Hi - I wonder if anyone could give me some advice. I am looking for a bank that is more inclined to offer the Loan Guarantee Scheme to start up businesses and newly formed companies. I know that some wont offer the LGS to new co's.
Currently I own a bar in soho that was funded through the LGS with Barclays. This bar is now three years old and doing OK (making profits)
Now I wish to buy my second bar which I will set a new company up to do and have the lease assigned to this new co. I have approx 100K of my own funds but I also need a further loan of 100K through the LGS. The reason I am looking at the LGS is because I do not have any tangible assetts in terms of a house to secure a loan on.
I have spoken to Barclays and they are happy to look at providing me an additional loan against my current bar to fund the new bar but are unhappy to process an application for the LGS on a newco trading the bar. Now this means that should the worst happen and the new bar does not survive then it will also bring down the existing bar! Further, I am looking to create two additional floors on my existing bar once planning permission has finally been achieved. Therefore, I would rather not borrow any more money on my existing bar as it might prevent me borrowing more pay for the creation of the new floors at a later date.
Any advice would be gratefully received
Andy
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