DTi Loans - Help wanted in funding start up retail business

[danh]

Hi,

We are looking to start up a retail business, and looking at how we can raise the funding without risking all of the equity we have in our houses (wives said no!). We are prepared to put up a considerable amount as security, however the bank have said that we will be unable to secure at DTI backed loan with the assets (our houses) we have. Ideally we were looking at £250k dti loan, plus a secured bank loan of £250k, however without the dti loan we are not sure if we will have sufficient capital to get the venture off the ground without seeking 3rd party funding, which we would prefer not to do. Anybody's view from previous experience would be most welcome.

rgs

danh

[ventra]

If I recall, the small business guarantee scheme will guarantee upto 75% of the loan, eligibility is based the usual business plan etc, but also on the basis that you do not have sufficient assets of your own to back up the borrowing.

It was developed to encourage entrepreneurship and not to reduce personal risk. Although it could be said that it is designed to protect banks!

I'm surprised to see it still in operation.

I worked for a company that did raise finance using the scheme as guarantor, but we did go through a third party to help put the proposal together.

Can't recall how much it cost, but we got the money and it helped focus the mind incredibly.

I would be more than happy to pass their details to you if you like.

Regards

Bill

[ventra]

The dti, (small business guarantee scheme) was devised to stimulate entrepreneurship amongst those that don't have any assets to offer as collateral, however, the lending criteria was still subject to the lenders normal policy. Only 75% of the loan was guaranteed by the Govt.

In a previous business we raised a similar sum and qualified for the scheme, we did however use outside help in developing the ongoing business plan and strategy.

We got offers from 4 banks. Result.

I can wholly recommend the route we went down in getting "Outside" help, it focused our minds on the business and helped us develop a exit strategy.

The company we used are well respected and complete professionals.

Let me know and I will dig their details out for you.

HTH

Bill

[danh]

Thanks for the post. I would be really interested to know who helped you. We are using outside support who have been great in shaping the business plan but whom have fallen a little short in helping secure the investment. Any help would be most appreciated.

Kind rgs

Dan

[ventra]

Hi Dan

The guys we dealt with are:

Ford Campbell Freedman LLP
34 Park Cross Street
Leeds LS1 2QH

Tel: 0113 245 7222

Ask to speak to Lisa Calvert in the first instance, she is the Office Manager and will be able to get things moving for you. You can mention my name if you like, Bill Antill Jnr.

Good Luck

Bill

[danh]

That's great.

Many thanks for your support

rgs

Dan

[profitxchange]

you could also try your local Business Link.