How do I borrow £600k for a business?

(7 Posts)
ToffeesAndChocolates Thu 27-Nov-14 22:21:57

Is it even possible? It has £1m turnover and is nicely profitable. Is it even worth me trying? We can secure some business loan against our house (as a 2nd charge on the mortgage) but that would only get us half the money. The bank have said before that they don't lend against business assets so how/where else can I borrow big money to buy a good business?

OP’s posts: |
Basketofchocolate Sun 30-Nov-14 12:36:51

Have you looked at crowdfunding? Otherwise a specialised broker might be a good idea. You can definitely get asset-based lending these days.

Whereabouts are you based?

Mintyy Sun 30-Nov-14 12:38:36

I think you need what is known as a venture capitalist (?)

ToffeesAndChocolates Sun 30-Nov-14 21:28:36

Based in the Midlands. What do I search for to find a specialised broker?

OP’s posts: |
BigPawsBrown Sun 30-Nov-14 21:35:28

You need an asset of that worth (an uncharged asset of £600,000 or if the business loan charge would rank second, of £1,200,000). Banks won't lend against company assets because then their eggs would all be in one basket - if the business went bust they wouldn't get their loan or the asset as the asset might be used to pay off creditors. I know you'll say the business won't go bust but what's in it for the bank?

Do you have any floating assets like stock you could get a floating charge against rather than a fixed property charge? Or you could consider giving a directors' personal guarantee.

This is all noddy stuff though so if you don't know this I wouldn't consider investing half a million quid of your own money even into the most profitable business. It may be turning over but if it's not growing how will you get your capital back?

Basketofchocolate Mon 01-Dec-14 21:27:45

Have you tried GrowthAccelerator programme? They may be able to help.

NotYouNaanBread Thu 11-Dec-14 17:15:58

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