He’s starting a business which is already established in Dubai and Qatar. He’s now starting in london under their name however as he is 23/24 years old banks are reluctant.
So how can e get a business loan ? Is it possible? The Dubai and Qatar ventures are well established.
Help please
Re: how can a 23 year old get a business loan
you will need to produce a rock solid business plan. Attach along any business plans, balance sheets , proof of profit from the other businesses in Qatar and Dubai. Also you will need to draw up a clear , profit and expenditure based sheet for the next 5 years to show how you plan to give back the loan .
usually the banks go for a solid business plan and a few other things and if they are good enough they dont go for the age factor . in your case it should be easy since you already have something to show that is successfully running.
Re: how can a 23 year old get a business loan
he will probably need a local co-signer who can guarantee the pay back of the loan. someone who he knows well enough and someone who has financial backing [property, business, ability to pay back] with the bank/lending agency.
Re: how can a 23 year old get a business loan
Here in US you will need a social security number so that the bank can check your creditworthiness. Am sure there is something similar in UK too. Without a good credit history, chances of getting a loan without a co-signer is nil. Maybe someone from UK can chime in. Age does not play a factor.
Re: how can a 23 year old get a business loan
He will need to put a portion of investment in himself - that demonstrates he has money to off-set the bank risk. Or if he has property as leverage to show that too. The bank will not give a loan if they feel the person will run off with it, so they need something to grab at if he should default or try to run away.
If he has two running businesses then he will need to show how well those businesses are doing as well, to give the bank confidence that he can cover risk when or if required.
It's easier if the person has assets that are tangible ... for the purpose of repossession (if required) ... so if he starts off the business himself and then asks for the loan then that will help also. It shows that he has something to lose ...
Think about it from the Bank's point of view ... Why would they give a stranger money? So they can make it back ... with profit ... how will they ensure that?